Tennessee regulators have allowed a combination of sports betting and high-risk lending


On Wednesday, betting authorities in Tennessee approved a high-risk “flex loan” lender -which has annual interest rates of 279.5 percent — that will operate as a store where customers can deposit funds into the sportsbook that is linked to the company. Action is accessible anytime as a move which resembles zoning the establishment of a liquor store close to an alcohol treatment facility.

Advance Financial, headquartered in Nashville, Tennessee, has over 100 physical locations in Tennessee which is in which the legal environment for payday loans and “flexible” lending is very popular and is culturally accepted. Find more offers at Oak Park Financial website.

Tina Hodges is the president and CEO of Action 24/7. The bookmaker was licensed in Tennessee on the 1st of November, along with National players BetMGM, DraftKings, and FanDuel. The only company Action 24/7 has combined the capability to finance accounts for sports betting and the possibility of applying for the type of loan with high interest that is typically sought by distressed, desperate customers who are caught in a cycle of debt.

The Tennessee Educational Lottery Corporation’s (TELC) sports betting committee swiftly approved 11 additional applications to register as vendors in a two-hour session Wednesday, before TELC board chairperson Susan Lanigan said some discussion regarding Advance’s application was required.

“It seems a little weird that someone could so easily borrow money to put money into a sports betting account,” said Will Carver, a partner at Knoxville’s Kramer Rayson LLP and a member of the committee and board. “Because of where it’s located, it causes some pause.”

Advance’s request was stalled for more than seven minutes before Carver as well as committee member Lanigan approved it 2-0-1. it, allowing the firm to become a one-stop-shop for high-risk loans as in bets on sports deposits or withdrawals. The only vote against it was cast by John Crosslin, who works for Advance Financial as an accountant. The committee is comprised of just three members, while the board comprises seven members.

The tale, however, isn’t just about Wednesday. Since the beginning of November the previous season, Advance Financial has been handing out flyers to promote cash withdrawal and deposit services to its sportsbook affiliate.

What is it that makes Action 24/7 different?

According to numerous sources, a copy of one such flyer was seen in many (possibly the majority (or the majority) of the more than 100 Advance Financial locations around the state.

The company may be the first to have distributed the flyers and then sought approval from the regulatory authorities or been required to sign up as an online vendor. Based on the information on the back of the brochure, the firm appears to have used its locations to serve as deposit and withdrawal points since Tennessee allowed sports betting on November. 1st January, 2020. (“Advance Financial Financial, Inc. isn’t an authorized sports bookmaker and doesn’t offer betting services.”) Advance Financial is the only firm that has the ability to load and take money out of accounts.”)

Action 24/7 is promoting the capability to deposit and withdraw money in “over 100 retail locations,” in reference on those at the Advance Financial buildings, on local radio and on television. According to an article, Advance Financial is not mentioned by name on the account on social media for the sportsbook.

At Action 24/7 it offers the majority of its betting options as its competitors , at similar prices. As with the majority of other sportsbooks they use Sportradar to manage oddsmaking and risk management, and Amelco for technology and software and also runs different US as well as European sportsbooks, including FOX Bet.

Overall, it appears that Action 24/7 is attempting to set itself apart from the Tennessee sportsbooks that have been approved by the TELC thus far – a list that now includes Churchill Downs, whose BetAmerica/TwinSpires platform is set to launch in the coming weeks following its TELC license on Wednesday.

In various public appearances Tina Hodges complimented the local-based roots of the sportsbook and the possibility of cash deposits and withdrawals from the lending locations. This past Monday Hodges discussed with ESPN Chalk about the ways in which Action 24/7 stands out from other sportsbooks.

The users of on the Action 24/7 website can discover any of these Advance Financial 100 locations, regardless of whether they are signed in or not. “Cash Locations” is the main page on the website of the sportsbook and it’s the page that creates the map that appears at the top of the page.

Hodges has emphasized the idea of depositing money at location of the sportsbook’s partners in previous interviews, while pointing out that not all customers want to connect their bank account to the sportsbook account. “It’s okay if you don’t want to tie it to your bank account,” Hodges stated to The Tennessee Star in December. “We’re aware of what’s going on. It is feasible to complete the transaction with cash.”

Individuals who do not have bank accounts or have money in their bank accounts and prefer keeping their finances hidden from their spouses and other account holders are included.

Gambling and lending policies that are at odds with one another

The Tennessee legislature charged the TELC to oversee the business as well as approving operators and suppliers after it legalized betting on sports in the year 2019. The lottery was established to fulfill this task partly due to the fact that there no previous gaming authority to oversee the newly-approved gambling because the state did not have no casinos.

The regular tickets for lottery and scratch-offs, as well as scratch-offs drawings, and other similar products were previously included in the TELC offer. In accordance with state law, the agency has granted licenses to numerous companies across the state to offer these tickets for not less than 6.5 percent fee.

Deferred presentment services, also known as payday lenders are a place where those experiencing financial hardship like medical emergencies, could borrow money with excessive fees and charges and end up in a cycle of debt. In these instances the loans are usually due the next payday. In fact, some have profited from these loans that are low-cost. There’s no doubt that Tennessee legislators believed it was crucial to differentiate the high-risk loans of borrowers in addition to Lottery sales. In Tennessee as in other states, buying lottery tickets with credit card credit card is prohibited.

The Consumer Financial Protection Bureau has been for a long time an opponent of payday lending which is illegal in a variety of states. Therefore, Advance Financial decided to abandon payday lending at the beginning of 2016, in favor of “flex loans,” which have different structures, however are still used by those in financial distress. They could have negative economic effects for a lot of borrowers looking to avoid Tennessee statute’s highest APR, which is 279.5 percent.


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