Tennessee Education Lottery (TEL) Board Chair Susan Lanigan resigned her position this week.
TEL spokesman Dave Smith told The Tennessee Star Thursday that Lanigan resigned “to spend more time with family.”
Smith said in an email that Lanigan — with the remaining TEL Board members’ consent — nominated Board Member Will Carver to replace her.
“The bylaws for the Corporation require that officers of the Board be elected annually at the last regular meeting of the Board on or prior to June 30 of each year,” Smith said.
“The election on May 12 was the Board’s annual election. Any board member may nominate an officer.”
The Star asked Smith if Lanigan’s departure had anything to do with the TEL Board suspending the license for the online gaming company Action 24/7.
Action 24/7 operates out of the Volunteer State.
Smith said no.
The TEL had suspended Action 24/7’s license due to a self-reported incident of card fraud that company officials found and stopped. Several TEL Board members, some while holding the meeting remotely and driving in their vehicles, temporarily stripped Action 24/7 of its operating license. Some board members were on spring break at the time. At the beginning of that meeting, Lanigan said “we’re all gonna do the best we can here.” 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.
A judge later ruled the TEL had to reinstate that license.
Nashville Chancellor Patricia Moskal ruled in March that TEL members did not give Action 24/7 the proper due process and that continued suspension of the license threatens the businesses’ continued financial livelihood. She ruled that the TEL must reinstate the company’s sports gaming operator license.
Moskal ruled last month that TEL members do “not have the unilateral right” to take punitive measures against Action 24/7 concerning a matter she’s already ruled upon.
TEL members formally asserted this week they are not investigating Action 24/7 and that the company’s internal controls meet state requirements.
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