Tennessee Sportsbook Action 24/7 License Suspended Due to Violations

Action 24/7, the first operator to receive licensing from the state, was yanked offline after it reported likely credit-card fraud, money laundering, and illegal proxy betting that had occurred within its system. The suspension marks the first time that any US-regulated online gambling has been shuttered, even if only temporarily.

On March 17th, the regulators learned of an extreme case of credit-card fraud, where a customer was able to open an account and make an initial $10 deposit, then follow that with over 120 successful deposits made from other credit cards not in the user’s name. The second violation involved an agent of the site opening accounts and placing bets on behalf of at least 40 out-of-state residents.

Action 24/7 officials waited eight days to notify Tennessee’s regulators of the issues after learning of them on March 9th. Tennessee Education Lottery investigator Danny DiRienzo described the credit-card problem as "100% typical of every credit card fraud case I've worked over the past 25 years." Action 24/7 only indirectly acknowledged its suspension, posting this on Twitter: "We know the timing is not great, and we appreciate your patience! We've worked through the night to get the issue resolved. We'll be back soon."