State regulators on Friday suspended Tennessee Action 24/7 — a legal sports gambling outfit with ties to locally based payday lending company Advance Financial — just as the lucrative NCAA basketball tournament was getting underway.
An investigator for the Tennessee Education Lottery’s Sports Wagering Advisory Council told the regulatory body that he had found evidence of money laundering and fraud on the betting app.
The list of issues at the sportsbook was long, according to media reports. Erik Schelzig at the Tennessee Journal reported that the investigator found a potential money-laundering scheme in which a player would sign up for an account, then deposits would be made from multiple credit card numbers, then the balance on the account would be withdrawn abruptly with little gambling action.
