Judge Blocks Another Hearing On Tennessee Sportsbook License

Judge finds that state lottery lacks 'unilateral authority' for another hearing
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It looks like TN Action 24/7 has secured another preliminary win in court.

According to the Associated Press, a county judge has blocked the Tennessee Lottery from holding another suspension hearing this week regarding the sportsbook’s license, which it temporarily suspended last month before the judge ordered it reinstated.

The license was suspended around the time of the March Madness tournament due to alleged user fraud on the platform that the Lottery said the sportsbook was unable to prevent from reoccurring. TN Action 24/7 denied those claims, alleging that it has proper internal controls.

The judge found that the Tennessee Lottery improperly suspended the sportsbook’s license while the investigation into alleged criminal activity on the platform is ongoing. TN Action 24/7 has filed suit against the state over its license suspension. In the meantime, it’s still accepting wagers.

It was unclear if the Tennessee Lottery planned further action on the license this week, but state attorneys reportedly indicated that any action “would not go into effect without further direction of the court.” However, the judge said that the Lottery lacks the “unilateral authority” to hold another hearing.

Another public hearing might not have been positive for the sportsbook’s reputation, which TN Action 24/7 cited as taking a hit due to the license suspension and allegations of improper internal controls.

The sportsbook, which only operates in the Volunteer State, has a very small share of the Tennessee sports betting handle, trailing industry giants DraftKings, FanDuel, and BetMGM.

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