for early access to the latest igaming videos!
and get the latest igaming news first!
Action 24/7, the only sportsbook owned and operated from Tennessee, has closed its doors. The company announced on its website that it would stop taking wagers immediately, while assuring customers that all bets already placed will still be honored.
In its farewell message, the operator spoke about its local roots, noting that more than 90% of the money invested in the business came from Tennesseans. It thanked users across the state for their loyalty and support, but gave no explanation for the sudden shutdown.
“We are proud to have served our friends and neighbors as the only Tennessee-owned and operated licensed online sportsbook for the past five years,” the company wrote in its statement. “Thank you for your play. Thank you for your loyalty. Over 90 percent of funds invested in the company were from Tennesseans. We are forever grateful for your confidence and support.”
With its exit, Tennessee’s online sports betting market now counts ten licensed operators, which include major names like bet365, Caesars, DraftKings, BetMGM, Fanatics, and Fanduel. The state remains unique in how it taxes the industry, charging on the handle, which is the total amount wagered, rather than on operator revenue.
That system means sportsbooks must pay taxes even in months when they record losses. Tennessee also does not publish monthly handle figures for each operator, leaving the impact of Action 24/7’s departure harder to measure.
A rough six years for Action 24/7
Action 24/7’s time in Tennessee was very hectic. In March 2021, the sportsbook saw its license suspended by the Tennessee Education Lottery’s board, after regulators raised suspicions of credit card fraud and possible money laundering.
The decision came just as the NCAA Tournament was beginning, an important period for betting operators.
The company quickly fought back, filing suit against lottery officials. Its attorneys argued that the suspension was carried out without proper consultation of the full board or its advisory council, and without giving Action 24/7 a chance to defend itself. They stressed that the timing caused serious financial harm, cutting the business off from one of the busiest betting events of the year.
By the end of that same month, the sportsbook secured a temporary injunction that overturned the suspension. The ruling allowed Action 24/7 to resume operations in time for the Sweet 16. Six years later, the sportsbook is closing shop in a market it has struggled to operate in for over half a decade.
Action 24/7 Founder and President Tina Hodges said in a press release:
“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.”
Tennessee continues to battle illegal gambling
Tennessee has stepped up its fight against unlicensed betting, hitting operators with heavy fines and ordering platforms to shut down.
Toward the end of 2025, regulators penalized two illegal sportsbooks $50,000 each, while five offshore sites were fined a combined $250,000. The crackdown didn’t stop there, just last week, three major prediction market platforms, Kalshi, Polymarket, and Crypto.com, also faced state action.
Attorney General Jonathan Skrmetti has made clear that his office is targeting gambling models that go against state regulation. In December, he issued cease‑and‑desist letters to 38 sweepstakes casinos, accusing them of disguising real‑money gambling through dual‑currency systems that could be redeemed for cash or prizes.
At the time, Skrmetti said the move was part of a wider effort to “protect Tennessee consumers from predatory and unregulated gambling operations.”
Source: GamblingInsider
