The judge issues an injunction around the clock to temporarily restore the TN sports betting license
A Nashville Richter issued an injunction Action 24/7 reintroduce the TN sports betting license until the outcome of their regulatory issues with the Tennessee Education Lottery (TEL.)
Action 24/7 TN sports betting license was initially suspended on March 18 – the day of the first four March madness Games – from TEL Chief Executive Officer Susan Lanigan.
The board of directors ratified and confirmed this suspension in a special meeting 19th March.
action CEO Tina Hodges celebrated on Twitter after the announcement:
In favor of the plaintiff – The court concludes that action 247 is likely to be successful in the main because the action of the TEL board of directors was flawed or arbitrary and capricious under the law and rules. Pic.twitter.com/163AYClOp9
– Tina Hodges (@TNRookieBookie) March 26, 2021
“We will continue to work with Action 247 to implement appropriate minimum internal control standards that protect the public interest and minimize the risk to the integrity of sports games in Tennessee,” TEL said in a statement.
Action around the clock would “suffer immediate and irreparable damage”.
The Davison County Registrar’s Court The action scheduled around the clock would suffer irreparable damage if it were suspended indefinitely:
“The loss of business, customers, goodwill, and reputational damage can result in irreparable damage that cannot be adequately compensated for by monetary damage. … At this early stage of the injunction in the proceedings, the Court concludes that the 24/7 campaign has clearly shown that by suspending his license for an indefinite period and all betting operations he has irreparable losses to his customers, his goodwill and his Reputation and will suffer irreparable losses. “
The balance of relative damage even lay between Action’s monetary losses and TEL’s responsibility to protect public safety, we found.
TEL did not follow the procedures
It appears that the verdict would have been different if TEL had followed the correct procedures:
“However, the rules of procedure do not provide for the TEL board to convene an emergency meeting to” ratify “the decision of the committee-designate on the temporary suspension and make a final decision without holding a hearing or at least allowing the licensee to act Send your request to the TEL board. … Based on the limited records, the Court provisionally states that there is a likelihood of success in the matter that the actions of the TEL Board of Directors were clearly flawed when it failed to follow the steps set out in its own rules and took the decision to temporarily suspend ratified “the TEL CEO, but without offering an opportunity to be heard around the clock. “
A hearing was requested at the March 19 meeting when the Board decided to continue its indefinite suspension but the Board did not take any action to testify.
Background information on 24/7 exposure
The trouble started for Action 24/7 more than two weeks ago as 23 instances of suspected fraud and money laundering began the evening of 8th of March, the advocate of sports betting Steele Clayton said at TuesdayHearing.
Most of the incidents went through March 12th with the last attempt March 16. According to TEL sports betting investigators Danny DiRienzoThe first cases he checked should have been quickly flagged for review due to multiple card deposit attempts or withdrawals with limited betting activity.
Action 24/7, however, couldn’t do that. The company had no live surveillance activity on its platform, which means these instances weren’t found until the staff arrived at the office that morning. It was only after the 23rd and last reported instance on March 16, more than a week after the first problems were found, that the action was carried out around the clock CEO Tina Hodges decided that the surveillance should also be carried out around the clock.
On 17. MarchAction 24/7 reported the incidents to the TEL itself – although this was not its immediate intention.
Aktion “didn’t know” that it had to report suspected fraud
A zip file of the incidents was sent to DiRienzo on the 17th but was not opened until the next day when he returned to the office. The information was sent to find out if Action should forward the information to the Tennessee Bureau of Investigations or if that was the job of the TEL, Clayton said when asked about the delay in notifying the regulator:
“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 telling us about betting activity which we understand to be things like fixing a game, wrong betting lines, or changing betting 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?”
Lindsay Sisco of Attorney General of TennesseeThe office said there should have been no confusion about what should be reported. In her opinion, the 24/7 action did not want to admit that there was another problem, she told the court.
Promotion 24/7 contractor involved in proxy betting
The action ran counter to the TEL around them at first Super bowl. At the time, TEL reported only two operators 74 accounts suspended for investigations by law enforcement agencies.
DiRienzo announced one of these operators: Action. An employee contracted by the company has reportedly set up 45 proxy betting accounts, DiRienzo said.
Clayton mentioned that sports betting had not been penalized for this issue. This is because the investigation has not yet been completed, TEL said on Thursday:
“It was handed over to law enforcement immediately, and we have yet to take action pending the outcome of this investigation.”