A court in Nashville ruled Friday that the indefinitely suspended sport betting license of TN Action 24/7 must be reinstated immediately.
The online/mobile sportsbook had been suspended since late last week after regulators with the Tennessee Education Lottery determined the sportsbook lacked the proper internal controls to prevent further fraudulent activity on the platform.
TN Action 24/7 denied the claims that the issue wasn’t under control, and it quickly sued to have the license suspension lifted. The court found that the TEL didn’t follow proper procedures in suspending the $750,000-a-year license. The sportsbook may be able to recoup lost revenue from the state.DocumentFragment_487277 (2)
Case not over yet
An investigation into illicit activity (credit card and identity fraud, money laundering, and proxy betting on the most recent Super Bowl) on the platform is still ongoing, and regulators may later suspend or revoke the license. For now, however, the book is back in business for the ongoing March Madness tournament, a need it cited in its lawsuit against the state and regulators.
TN Action 24/7 has less than 1% market share in Tennessee, dwarfed by industry giants such as DraftKings and BetMGM.
The sportsbook’s CEO celebrated the news on Twitter.
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