For the first time in the short history of American online gambling regulation, a license has been suspended. The sports betting license of Action 24/7 has been suspended by the state of Tennessee, where the company is based.
Following a meeting of the state regulator, the Tennessee Lottery, it was decided to pull the operators license due to suspicious betting activity, which included play through a proxy and suspected credit card fraud.
The Action 24/7 team actually brought the matter to the attention of the regulator after they began investigating the player account which made 184 different deposits from seven different credit cards… all of which used names. Some deposits were larger than $10,000, and withdrawal requests were made after almost no game play.
“This was clearly a case of money laundering,” said Danny DiRienzo, sports betting investigator for the Tennessee Lottery. “It was clearly a case of aggravated identity theft, clearly a case of wire fraud.”
Meanwhile, Action 24/7 has filed a lawsuit against the Tennessee Lottery, saying they had no authority to suspend their license. They are also seeking an injunction to restart operations.