Online sportsbook Action 24/7 has ended its operations in Tennessee. The closure comes despite the company receiving support from Tennessee House Speaker Cameron Sexton, who allegedly protected the owners, Michael and Tina Hodges, from regulatory scrutiny.
The company announced earlier this month that it would no longer accept wagers. In a post on X, it stated, “Tennessee Action 24/7 LLC is no longer accepting wagers.”
The platform had offered betting on all major sports, including esports, since Tennessee legalized sports betting in 2020.
In a press release announcing the platform’s closure, Tina Hodges stated, “Despite our very best efforts and dedication, the current landscape for state-licensed online sports gambling in the United States has proven to be unviable and unprofitable for all operators in the industry. We are forever grateful for your confidence and support.”
Ties to Payday Loans Led to Regulatory Scrutiny
The Hodges couple made millions of dollars through their other company, Advance Financial, which offered loans at exorbitant interest rates. The firm’s ‘Flex Loan’ product reportedly offered loans of up to $4,000 at a 279.5% interest rate.
After sports betting was legalized, the couple set up Action 24/7 and used Advance Financial stores to promote the platform.
In March 2021, Action 24/7 came under scrutiny by the Tennessee Education Lottery Corp., the state’s gambling regulator at the time. Regulators were concerned that high-interest loans and sports betting were being marketed side-by-side.
House Speaker Intervened to Protect Company
The board moved to suspend Action 24/7’s license, but ProPublica alleges Sexton intervened to protect the Hodges and their businesses. The 55-year-old Republican received $105,000 in donations from the couple over the past ten years.
As Action 24/7 was under investigation, Sexton met with board chair Susan Lanigan to express his frustration over a possible license suspension. She resigned shortly after.
However, the board continued its investigation. Sexton then used his authority as one of the state’s most powerful lawmakers to push through legislation to remove its control over sports betting.
He claimed this was a policy decision that included members of the lottery. The Tennessee Sports Wagering Advisory Council (SWAC) was created in 2022 to govern sports gambling. It quickly ended the investigation of Action 24/7.
Investors in Action 24/7 With Ties to Sexton
ProPublica’s investigation revealed that, in addition to receiving campaign donations from the Hodges, individuals with ties to Sexton invested in Action 24/7.
The company said over 90% of the funds invested were from Tennesseans. This included Sexton’s campaign advisor, John Saltsman, and Ward Baker, a campaign adviser for Tennessee’s two U.S. senators.
Sexton denies any wrongdoing, writing in an email to ProPublica, “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 with campaign laws.”
With the closure of Action 24/7, Tennessee now has 10 licensed sportsbooks operating in the state. The neighboring state of Mississippi may also launch online sports betting in the near future, following the introduction of legislation last week.