Members of the Tennessee Education Lottery Association have formally asserted they are not investigating the online sports-betting website Action 24/7 and that the company’s internal controls meet state requirements.
This, according to a letter that Tennessee Education Lottery (TEL) Executive Vice President and General Counsel Alonda W. McCutcheon distributed this week.
Action 24/7 operates out of the Volunteer State.
In her letter, McCutcheon wrote “there is currently no active investigation of Action 24/7 being conducted by any of the Board [of directors], the Sports Wagering Committee of the Board (SWC), or the TEL staff regarding the allegations presented by the TEL staff to the Board at the Board’s March 19, 2021 meeting or the adequacy of Action 24/7’s internal controls.” She also wrote that Action 24/7’s internal controls meet internal control standards and the company’s license in the state “is fully effective” without restrictions.
“Action 24/7 is in good standing with the TEL,” McCutcheon said.
“The temporary suspension of Action 24/7’s license and the disciplinary action undertaken by any of the board, the SWC, or the TEL staff related to the allegations presented by the TEL staff to the Board at the Board’s March 19, 2021 meeting are null and void. Action 24/7 is entitled to the full use and benefits of its license, including, but not limited to, the ability to freely interact with other TEL licensees and vendors or other parties.”
Nashville Chancellor Patricia 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.
The TEL had suspended Action 24/7’s license due to a self-reported incident of card fraud that company officials found and stopped. 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.
Action 24/7’s license suspension caused the company to lose revenue during the National Collegiate Athletic Association’s “March Madness” basketball tournament.
When TEL Board members took away Action 24/7’s license earlier this year, they did so remotely while occupied with other matters. Some were driving their vehicles during the meeting. Others were on spring break. TEL board members acted against Action 24/7 while taking the word of one investigator who said the company didn’t follow through on the necessary security protocols.
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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
