The online gambling web domain Action 24/7 was suspended by regulators following a recent revelation there was alleged illegal activity on the site. One of the new online gambling firms to have been granted a license to operate in the State of Tennessee has violated the rules of the state regulatory authority the Tennessee Education Lottery. It was reported that the web location was alleged to have committed credit-card fraud, money laundering, and illegal proxy betting.
This is the first time that any US-regulated online gambling company has been suspended although it may just be temporarily.
Action 24/7 officials waited eight days to notify Tennessee’s regulators of the issues after learning of them on March 9th. Action 24/7’s suspension was called right away after it called the state’s regulators, the Tennessee Education Lottery, which learned that there had been at least two significant series of violations on March 17th 2021. The authority was made aware of an alleged extreme case of credit-card fraud, where a customer was able to open an account and make an initial $10 deposit, then follow that with over 120 successful deposits made from other credit cards not in the user’s name. It was revealed that the player then rapidly cashed out the other deposits after conducting some “minimal” wagering.
A second violation involved an agent of the site opening accounts and placing bets on behalf of at least 40 non state residents. Customers are required to physically be in the state while wagering. The site’s agent admitted to placing wagers on the out-of-state customers’ behalf.
Tennessee Education Lottery investigator Danny DiRienzo, described the position of Action 24/7’s processes as not being up to the challenge. "The internal controls, in my opinion, based on the facts, are not in place to prevent future criminal conduct on this website,"
Action 24/7’s home page offers no explanation to its customers regarding the current downtime.