No decision yet after taking 24/7 action to lift the TN license suspension
Action 24/7 Wednesday’s court alleged that his business will be destroyed by the indefinite suspension of his Tennessee Sports betting license.
The company has defended itself publicly for the first time since the suspension in the EU Davidson County (TN) Registrar’s Court. Action 24/7 would like a temporary injunction to restart its sports betting in good time Saturday‘s March madness Games.
The suspended operator case is related to a few key arguments:
- The Tennessee Education Lottery (TEL) The board did not act properly when it suspended Action’s license in the absence of an urgent need to do so.
- This unlawful suspension resulted in a lack of proper action.
- According to the lawyer, the suspension is destroying the business Steele Clayton.
“While the learning curve for the proper process is going on, our business will be destroyed. Literally, not dramatically, truthfully. Without question.”
TEL investigators describe a bad situation of constant self-regulation inactivity on the part of the operator. This inaction resulted in potentially hundreds of thousands of dollars in damage Credit card fraud and Money laundering.
Federal Chancellor Patricia Moskal said she was aware of the March Madness games this weekend and will work to make a decision on the TN sports betting license as soon as possible. The court could allow the suspension to be continued, lifted, or returned to the TEL Board of Directors for a hearing.
TEL: An additional round-the-clock hearing would be pointless.
There has been a lot of debate over whether the 24/7 action actually deserves a hearing, or whether it even received a hearing before the Board of Directors ratified and confirmed its indefinite suspension last Friday.
However, there is no point in the court sending the matter back to the chamber for a hearing Lindsay Sisco of Attorney General of TennesseeOffice.
“The court asked what kind of pre-trial detention this could mean and I think the plaintiffs are right: it may be pointless. The Board of Directors reviewed the evidence and heard from the CEO and President of Action 24/7. I do not expect additional or different evidence to be presented at a formal hearing before the same board members, because if that evidence were available and presented, TEL staff would have an assurance to lift the temporary suspension. “
Clayton said it was amazing the state would consider pre-trial detention useless. This is another reason the court should issue the injunction, he argued.
In non-emergency situations, the orderly process can take more than a long time two months complete. Action 24/7 needs to be able to work during this process, Clayton added.
Clayton also claimed that TEL did not provide written information about what Action 24/7 would have to do to get his license back. Sisco questioned this and said a letter had been sent March 22.
The action was not monitored for fraud around the clock
Sometime in the evening of 8th of March, the first of the 23 suspected fraud cases started. The action was only found out when the staff arrived at the office at 10 am the next day, however.
That’s because Action 24/7 wasn’t monitored around the clock. The company then took until the final reported incident March 16 A 24-hour surveillance was required to make a decision.
Action then passed the information to TEL Sports Betting Investigator Daniel DiRienzo on 17. March. That was just discovered March 18 like DiRienzo had the day off.
Turning on this 24/7 surveillance prevented an emergency situation, Clayton claimed. The suspension was not based on what was done after the fact, countered Sisco, adding that those steps should have been taken before the sports betting started November.
No need to file suspected fraud?
The most surprising part of the hearing came when the court asked why Action 24/7 had not previously reported these 23 suspected fraud cases 17. March.
The answer: Action 24/7 didn’t think it was necessary, Clayton said:
“Really two reasons. First, you need to compile the reports that we produced. Second, to be honest, it’s something we will definitely do in the future, but if you look at that [regulations]It seems to consider reporting to us wagering activity that we understand to be things like fixing a game, wrong bet lines, or changing bet lines. Things you would consider betting.
“While we consider this to be debit card fraud, you would go to [Tennessee Bureau of Investigations] With. And so we went back to the investigator after we put the incident reports together to give them to him and say, “We want to go to the TBI, is that something we would do or do you want to do that?”
“But your honor, in retrospect and now that you understand TEL’s position, we will certainly do that immediately. But again, your honor, all they had to do was say this or allow us to have a discussion or be heard. “
Sisco said from their point of view of the evidence that it looked like Action 24/7 wouldn’t admit they had another problem. DiRienzo also went on to explain how an employee who is under contract with Action 24/7 was opened 45 Accounts and helped with proxy betting before Super bowl at the meeting on Friday.
Is sports betting like shopping for fishing gear?
Clayton used some personal experience to explain how the suspension caused “enormous and catastrophic irreparable damage”.
When he started fishing, he went online and used the first website selling fishing equipment. He has stayed with this website for the past eight to ten years because he already has an account and has had good experiences with the website.
Action 24/7 now has the opposite. Anyone who searched for the website to place a March Madness bet saw that the website was not available. This led them to switch to one of the other licensed operators in Tennessee. Bettors who already had an Action account also had a hard time because they couldn’t withdraw their money.
“If you have customers who are unhappy, they probably won’t come back,” Clayton said.
Action still marketing while suspended
Another twist in the history of Action came on Tuesday night when a promotional email was sent.
The email offered a chance to win one $ 50 Free Bet.
Did @ TNAction247 forget to move marketing emails? The company’s sports betting license is pending. A hearing is planned for tomorrow: https://t.co/U70KP799qs pic.twitter.com/NzytToc7Bg
– Matthew Waters (@ByMatthewWaters) March 23, 2021
The TEL still has to clarify whether a suspended sports betting operator can continue to market to its customers.
Action 24/7 also states in its iOS app that withdrawal requests will be accepted until Wednesday.