Aktion 24/7 sued to lift TN betting license suspension
Action 24/7 sued the Tennessee Education Lottery on Monday for what it is for an unreasonable exposure of his Tennessee Sports betting license.
The company would like its license to be restored immediately after “TEL illegally disabled Action’s operability even though its license was not lawfully suspended.”
The Davidson County Registrar’s Court will hear the appeal from Action 24/7 to reintroduce the TN sports betting license Wednesday 2 p.m. Local time.
The action arises from the question of whether TEL Chief Executive Officer Susan Lanigan had the power to suspend Action 24/7 license on Thursday evening. Their decision was finally confirmed and extended by the full board at an emergency meeting Friday.
The payday loan company that became a sports betting company is the first US sports betting company to have its license suspended since then PASPA fell into it May 2018.
Action suspended around the clock due to money laundering and fraud
The board heard a report from the investigator for TEL Sports Betting Danny DiRienzo that outlined several cases of alleged Money laundering and Credit card fraud.
Action submitted 24/7 23 Incident reports of similar activity on 17. March. DiRienzo honored sports betting for catching it but found that the activity had started 9th March.
DiRienzo noted that he only had time to view a handful of the incidents, but said that there appeared to be “tens of thousands, if not hundreds of thousands of dollars” in damage.
He also stated that this wasn’t the first time Action 24/7 has been outside the law. Someone under contract with the company helped facilitate proxy betting for at least 40 Accounts before Super bowl, he said.
Lawsuit: DiRienzo’s report contained “wildly inaccurate” claims
The lawsuit denies how much the fraudulent accounts got out of these debit cards:
Mr. DiRienzo’s testimony was extremely inaccurate, as documented in the 23 incident reports he received from Action. As documented in the incident reports, the total amount of fraudulent deposits was approximately $ 37,362. From that amount, Action has currently rebounded and has $ 14,701 at its disposal, which means that only $ 22,661 of fraudulent withdrawals by seven people have been successfully made to four bank accounts.
Later in the lawsuit, Action 24/7 challenged DiRienzo’s experience:
Mr DiRienzo was very critical of Action for failing to discover that the names of the debit card holders were different from the names on the player accounts. In Action, however, only the information entered by the player that does not include the cardholder’s name is used. … Mr. DiRienzo’s statements indicate that he has a reasonable understanding of such transactions and has unreasonable expectations about the level of care expected by Action and the other licensees in combating player debit card fraud.
DiRienzo opened his remarks at Friday’s session, saying he had previously worked in federal law enforcement for 25 years, including 22 years as a US Secret Service Special agent. In this role he investigated illegal gambling operations and “many cases of money laundering”.
Lawsuit alleges TEL failed to follow procedures
According to Action 24/7, Lanigan’s suspension of his TN sports betting license without meeting the full board or smaller sports betting committee was illegal:
Despite these clear requirements, on the afternoon of March 18, the same day that Mr DiRienzo reviewed only three or four of the 23 incident reports voluntarily provided by Action, the Chairman of the Board decided to attempt to suspend Action’s license without to make the full convocation of the board or even the sports betting committee.
Aktion 24/7 also said the emergency suspension is unfounded as sports betting has already taken steps to improve its anti-money laundering controls.
The lawsuit warns of “catastrophic effects” of the action around the clock prior to suspension:
Action’s alleged suspension of its license had and will have had a catastrophic impact on Action’s ability to continue as a company.
A TEL spokesman declined to comment on Tuesday, saying it was “inappropriate” to comment on pending litigation.