The judge overseeing the case involving the Tennessee-based Action 24/7 has ruled that the Tennessee Education Lottery (TEL) must reinstate the company’s sports gaming operator license.
Chancellor Patricia Moskal ruled that members of the TEL did not give Action 24/7 the proper due process and that continued suspension of the license threatens the businesses’ continued financial livelihood.
As The Tennessee Star reported, TEL suspended Action 24/7’s license due to a self-reported incident of card fraud that the company found and stopped and has seen no recurring incidences since, says the suit. As reported Friday, several members of the TEL’s Board of Directors, while driving in their vehicles, met remotely and decided to temporarily take away Action 24/7’s operating license. Some board members were on spring break.
And TEL board members took this action while taking the word of an investigator who said the company didn’t follow through on the necessary security protocols.
Moskal noted these things in her ruling.
“Based on the limited record, the Court preliminarily finds there is a likelihood of success on the merits that the TEL Board’s actions were clearly erroneous when it did not follow the steps set forth in its own Rules and ‘ratified’ the temporary suspension decision of the TEL Board Chair, but without providing Action 24/7 an opportunity to be heard,” Moskal wrote.
“In addition, based on the audio recording of the TEL Board meeting, it is-not clear that all Board members had received the written information submitted by Action 24/7 prior to the emergency meeting or, if received, had an opportunity to review the information. The TEL Board did have the opportunity during its meeting to hear directly from Action 24/7, whose representatives were present on the call, but Action 24/7 was not allowed to address the Board.”
Moskal went on to say that “the TEL Board could have received additional facts before making its decision but opted not to do so” and that “Action 24/7 was not allowed to address the Board before a final decision was made.”
Action 24/7, Moskal went on to write, “has clearly shown it will suffer immediate and irreparable losses of its customers, good will, and reputation by having its license suspended indefinitely and all wagering operations stopped.”
As reported, Action 24/7’s license suspension caused the company to lose revenue during the National Collegiate Athletic Association’s “March Madness” basketball tournament.
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