Action 24/7 has been suspended from operating until it can provide evidence that sufficient anti-money laundering precautions are in place on the site.
US.- Tennessee’s Action 24/7 sportsbook has had its licence temporarily suspended after the Tennessee Lottery claimed deposits involving credit card fraud and money laundering were being made on the site.
The suspension began on Friday, and the sportsbook will remain offline until it can provide evidence that sufficient anti-money laundering precautions are in place on the site.
The board of the Tennessee Education Lottery Corporation also voted for a staff review to be conducted in order to obtain third-party confirmation of the company’s internal controls.
Danny DiRienzo, sports gaming investigator at the lottery office, raised concerns that “tens, if not the hundreds of thousands of dollars” in the fraudulent transactions could have been carried out.
He said it was “not the first case of very serious criminal conduct occurring on Action 24/7’s platform.”
It has also emerged that the company first detected suspicious activity on its platform on March 9 but did not notify the regulatory body about the issue until March 17.
DiRienzo added: “Our rules are very specific, requiring immediate notification. That is not even close to immediate.”
Meanwhile, the Tennessee Education Lottery has revealed that the state generated a total sports betting handle of $211m in January.
Tennessee is the first US state to launch an online-only sports betting market, but its early success highlights the potential of the market. Casinos and racetracks are prohibited in the state.