Action 24/7 wins case against Tennessee regulator as license is temporarily reinstated
Davidson County Chancery Court rules regulator was wrong to suspend license without fair trial
Tennessee regional sports betting operator Action 24/7 has had its license temporarily reinstated a week after the Tennessee Education Lottery (TEL) suspended it on multiple instances of suspected money laundering and credit card fraud.
Last week, Action 24/7 launched a case against the regulator for unfairly suspending its license after the operator detected suspicious activity and swiftly suspended the involved player accounts.
The Davidson County Chancery Court determined that the TEL had not followed the correct procedures in calling an emergency board meeting and failing to consult the full lottery board or its Sports Wagering Committee before suspending Action 24/7’s license.
The court heard that Action 24/7 had lost tens of thousands of dollars as it had been unable to take bets on a number of March Madness games.
Following the ruling, Action 24/7 CEO Tina Hodges wrote on Twitter: “In favor of the plaintiff – Court concludes that Action24/7 has a likelihood of success on the merits that the action of the TEL Board was erroneous or arbitrary and capricious under the Act and the Rules.”
In favor of the plaintiff – Court concludes that Action247 has a likelihood of success on the merits that the action of the TEL Board was erroneous or arbitrary and capricious under the Act and the Rules pic.twitter.com/163AYClOp9
— Tina Hodges (@TNRookieBookie) March 26, 2021
The judge said in her decision: “This temporary injection does not enjoin defendants from their ongoing duties to regulate and supervise Action 24/7’s compliance with the Tennessee Sports Gaming Act and the TEL Board Rules.
“Nor is Action 24/7 excused from complying with all requirements of the Tennessee Sports Gaming Act and the TEL Board Rules upon reinstatement,” the ruling stated.
The TEL said in statement: “We will continue to work with Action 24/7 to implement appropriate minimum internal control standards that protect the public interest and minimize risk to the integrity of sports gaming in Tennessee.”