Dispute Between Tennessee Lottery And Action 24/7 Is Over
The legal dispute between the Tennessee Education Lottery Corp. and local sportsbook Action 24/7 has ended.
Action 24/7 Chief Executive Officer Tina Hodges received a letter Wednesday from the lottery’s legal counsel saying the litigation in Tennessee has been resolved with the lottery board approving a resolution.
The "temporary suspension of Action 24/7's license, and the disciplinary action undertaken by any of the Board, the Sports Wagering Committee, or the TEL Staff related to the allegations presented by the TEL Staff to the Board at the Board's March 19, 2021 meeting are null and void," the letter states.
The sportsbook filed for a temporary injunction after the March 18 suspension and a Chancery Court judge on March 26 sided with Action 24/7 in granting its request for a temporary injunction. Chancellor Patricia Head Moskal’s ruling lifted the suspension.
Action 24/7 remained operational when the injunction was granted.
At issue were alleged fraudulent deposits and withdrawals at Action 24/7 that occurred between March 9 and March 12.
Hodges released a statement Thursday along with the letter from the lottery.
"We are pleased that this matter is coming to a close. We appreciate our loyal players and friends across the state for their unwavering support,” Hodges said in the statement. "Tennessee is our home. We are proud to be the only locally owned and operated licensed sportsbook.
"We remain committed to working with the TEL Board and the Sports Wagering Council to maintain an environment of compliance and integrity for the Tennessee sports wagering community.”
The all-online sports betting market went live on Nov. 1 with four sportsbooks — DraftKings, FanDuel, BetMGM and Action 24/7. TwinSpires, William Hill and WynnBET have since joined the market.
During Wednesday’s lottery board meeting, chair Susan Lanigan, who issued the original suspension that was approved a day later by the board, indicated that the board had met with legal counsel about pending litigation. It then voted to approve a resolution.
What the Letter Said
The letter sent to Action 24/7 and signed by lottery General Counsel Alonda McCutcheon confirmed that:
- There is currently no active investigation of Action 24/7 being conducted by any of the Board, the SWC, or the TEL. Staff regarding the allegations presented by the TEL Staff to the Board at the Board’s March 19, 2021 meeting or the adequacy of Action 24/7’s internal controls.
- Action 24/7’s internal controls and Action 24/7’s implementation thereof meet the requirements found in the Minimum Internal Control Standards.
- Action 24/7’s License is fully effective; there are no restrictions on Action 24/7’s License; and Action 24/7 is in good standing with TEL.
- The temporary suspension of Action 24/7’s License, and the disciplinary action undertaken by any of the Board, the SWC, or the TEL Staff related to the allegations presented by the TEL Staff to the Board at the Board’s March 19, 2021 meeting, are null and void.
- Action 24/7 is entitled to the full use and benefits of its License, including, but not limited to, the ability to freely transact with other TEL licensees and vendors or other parties.
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