Tennessee Action 24/7 Receives First Suspension of US Sports Betting License

The dubious award of the first US sports betting license ban is officially on Action 24/7 in the Tennessee.

The round-the-clock campaign failed to prevent several cases of suspected credit card fraud and money laundering from multiple accounts Tennessee Education Lottery. The full board voted on Friday to maintain and continue the temporary suspension of the action around the clock, which was passed by on Thursday evening Chairwoman Susan Lanigan.

All board members voted for the suspension with the exception of John Crosslin. He had to abstain because the company is a customer of one of his business partners.

Aktion 24/7 can appeal

Action 24/7 has already got its lawyers involved and may attempt to appeal the suspension of its TN sports betting license.

CEO Tina Hodges made a statement after the meeting:

The board of directors today suspended Action 24/7 sports betting operator’s license for suspicious player deposits for an indefinite period. This suspicious activity was quickly recognized by the campaign staff and the affected player accounts were quickly blocked. Measures have been taken to introduce additional controls to contain the activity and no further such activity has occurred since then. However, based on unfounded fears about future speculative iterations of the activity, the board took draconian measures at the start of the NCAA tournament.

Obviously we are disappointed with the board’s decision, but will continue to work with the TEL staff and seek all other ways to quickly lift the suspension so that the people of Tennessee can continue to enjoy betting on the Action 24/7 sports betting.

It came after a pre-Super Bowl issue where Action 24/7 hired someone with the company to allow proxy betting from more than three dozen player accounts.

Action 24/7 belongs to the same people as you Advance financing around the clock. The company offers payday and other high-interest loans in several US states, including Tennessee.

The suspension leaves five Tennessee Sportsbook available during March madness.

Action 24/7 errors that led to suspension

Danny DiRienzoIt took the TEL Sports Games Investigator 13 minutes to describe the various errors of Action 24/7.

DiRienzo received an email from an Action 24/7 employee Wednesday. He had no chance of opening it up until Thursday since it contained a .zip file, he couldn’t open it on his phone. Although the incidents have only just been reported 17. Marchthe company knew about her 9th March.

The folder it contains 23 separate incident reports over 23 Promotion 24/7 player accounts. He hasn’t even delved deep into anything because the transaction volume is so large. DiRienzo noted that it “would take some time to analyze all of the data”.

The very first account he looked at showed a player starting out with a small deposit using his own information which matched the account information. Then the lack of internal controls in action 24/7 showed:

“There were 184 deposit attempts from seven different credit cards with seven different names almost immediately,” said DiRienzo. “One hundred and twenty-four of these transactions, these deposits, were successful. We’re talking tens of thousands of dollars. The gameplay was very low which meant betting. And then several withdrawals to an account with the name of the player. “

The round-the-clock operation allowed “serious, serious criminal activity”.

Every account had similar patterns, DiRienzo said, clearly citing cases of credit card fraud, money laundering, cable fraud, and exacerbated identity theft.

“It’s serious, serious criminal activity,” DiRienzo said. “Probably on the order of tens of thousands, if not hundreds of thousands of dollars in damage. With several real individual and business victims. “

DiRienzo stated that the minimum internal control standards required for sports betting are intended to ensure that operators, suppliers and providers do everything possible to prevent illegal activity from occurring.

“If the minimum standard for internal control had been met or implemented by Aktion 24/7, if they had implemented the internal controls that they had introduced against the TEL before the start, this very activity would have been stopped very early,” said DiRienzo . “And we would have far fewer casualties and far fewer losses in dollars.”

The very first withdrawal from an account with minimal gameplay would set off a fraud alert with these minimum standards, he continued.

Also allows proxy betting before the Super Bowl

DiRienzo also noted that this was not the first case of “very serious criminal behavior on the Action 24/7 platform in the past two months”.

This issue affected a contracted Action 24/7 agent who opened 45 player accounts, 40 or 41 of which were for non-state residents, and placed hundreds of bets ahead of the Super Bowl.

DiRienzo personally offered to help the company with any problems at this point. One employee said he had concerns about the information they might get from vendors. DiRienzo warned her to mind her own problems first.

Round-the-clock action for “maintenance” on Thursday evening

Action 24/7 problems began around 6:30 p.m. Eastern on Thursday, shortly after March Madness First Four officially began.

On the company’s Twitter page, maintenance was blamed for the outage:

Site temporarily out of order for maintenance work. brb. pic.twitter.com/D8SabPqGJg

– Aktion 247 (@ TNAction247), March 18, 2021

The company did not perform any maintenance on Friday morning and instead chose to blame a “problem”:

We know the timing is not good, and we thank you for your patience! We worked through the night to solve the problem. We’ll be back soon. pic.twitter.com/l8dzUH9XCA

– Aktion 247 (@ TNAction247), March 19, 2021

Company accused of keeping profits to pay off loans

Rep. Tim Jernigan started looking into the company when he learned this Tennessee Education Lottery approved the loan transactions as a cash deposit point for sports betting accounts. Then he found someone willing to testify that his winnings were being held to pay off debts.

“Some people might say [paying down the debt] is also a good thing, I don’t know, ”Jernigan told LSR last month. “But what it is encouraging is for people to go in and place a bet to try and get their loan off.”

The cash deposit application was technically for a third company, Advance Financial Money Transmission Company. The application was reluctantly approved by the lottery. It was not in violation of the enabling legislation, although some respondents noted that the request “feels a little weird” and “takes a break”.

Jernigan and Senator Richard Briggs Filed identical laws that would make it illegal for people to bet and take out a loan through the same operation. HB 824 and SB 1029 receive their first committee hearings next week.

Will the 24/7 suspension affect the TN betting market?

The suspension of action 24/7 is unlikely to be felt by many, if market estimates are to be believed.

The company has evolved as a local sports betting company ready to take on the big boys. That doesn’t seem to be what happened.

Sewer tests and estimates from Eilers & Krejcik Gaming suggested that sports betting only had a 3% market share in the first three months:

First look into the opaque #TN online market for sports betting: Since the start (November 1st, 2020), the GGR share distribution has been divided fairly evenly between the big 3 according to our ests and checks. The results reflect a particularly strong December for BetMGM. (Precautions – GGR, sample size, variance, etc – apply.) Pic.twitter.com/tK5SJn6SbN

– Chris Krafcik (@CKrafcik) February 10, 2021

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