Report: Tennessee House Speaker Cameron Sexton Maneuvered To Keep 24/7 Sportsbook Afloat
Tennessee Speaker of the House Cameron Sexton (R, 25th District) faces serious allegations tied to the sports betting industry, according to an article published today by Tennessee Lookout and ProPublica.
The piece, entitled “How Tennessee’s Speaker of the House Helped Keep a Payday Lender’s Struggling Sports Gambling Company Alive,” reports on legislative actions that benefitted Action 24/7, a struggling and now defunct state-licensed sportsbook owned by Michael and Tina Hodges, the same couple that owns Nashville-based payday lending company Advance Financial.
With Action 24/7 facing possible regulatory sanctions, Sexton reportedly took steps to enable the company to continue to operate. The sports betting platform used Advance Financials’ 78 locations (57 towns) throughout the state to help support the gambling business.
Customers were allowed to borrow up to $4,000 at 279.5% interest from Advance Financial and deposit cash into a sportsbook account at the same window, the report says. Unlike some states, Tennessee permits a payday lender and a gambling company to be under the same ownership.
Political Favors?
The Hodges are among the largest donors to Sexton and his political action committee.
Sexton is not part of a criminal probe for any gambling activities, personal wagering, or any kind of corruption tied to gambling.
In an email to the Tennessee Lookout and ProPublica reporters, Sexton, “Despite what you are insinuating, my focus and decisions remain on the issues that matter to our state, our communities and to Tennesseans. My team manages campaign logistics, provides transparency and ensures compliance to campaign laws.”
Neither Sexton’s office, the state’s Republican and Democrat parties, nor the Gambling Clinic in Tennessee have responded to Gambling Insider’s request for comment.
Action 24/7 Ceases Operations
Action 24/7, Tennessee’s only locally owned and operated licensed sportsbook since legal sports betting launched in the state in 2020, ceased operations on Jan. 16, alerting customers on its website that it would no longer be accepting wagers.
The Nashville-based sports betting operator faced several legal challenges during its six years of operation, with its license being suspended in March 2021 by the Tennessee Education Lottery (TEL) Corporation Board of Directors. At that time, TEL and its Sports Wagering Advisory Council (now the Sports Wagering Council or SWC) accused Action 24/7 of potential money laundering and suspected credit card fraud.
The company filed suit against lottery officials that same month, claiming that board chair Susan Lanigan had revoked the sportsbook’s license without consulting the full TEL board or the SWC, and with the sportsbook company not having been allowed to make a case for itself.
Attorneys on behalf of the sportsbook argued in court that the business suffered substantial harm from the suspension of its license near the start of the NCAA Tournament, one of the most-wagered-on sporting events of the year, second only to the Super Bowl.
Sports Betting Oversight Removed From Tennessee Lottery
Later in March 2021, Action 24/7 received a temporary injunction against TEL officials to reinstate the company’s sports wagering license in time for the Sweet 16 of that year’s NCAA Tournament. However, the investigation was allowed to continue.
Sexton reportedly then helped push legislation through to remove the Tennessee Education Lottery Corporation’s control over sports betting. Within a month, the state lottery was being pushed out of sports betting and replaced by a new regulator – Tennessee Sports Wagering Council (SWC) – over which members of the legislature could wield more influence and control.
The SWC officially took over on Jan. 1, 2022.
Tennessee now has 10 licensed sportsbooks operating in the state: Bally Bet, bet365, BetMGM, Caesars, DraftKings, Fanatics, FanDuel, Hard Rock Bet, theScore Bet, and VIP Play.
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