Published on: January 28, 2026, 04:28h.
Updated on: January 28, 2026, 04:58h.
- Tennessee sportsbook closes amid concerns about payday lending and gambling connections
- Investigation reveals legislative involvement after regulators halted betting license
- Links to payday lending raise issues of consumer protection and ethical practices
The curtain has fallen on Tennessee’s contentious online sportsbook, Action 247, which ceased operations last week, citing inability to contend against major competitors like DraftKings and FanDuel. This comes amid claims of political influence by Tennessee House Speaker Cameron Sexton (R-25th District), as detailed in a ProPublica investigation.
Action 247 was deeply controversial due to its shared ownership with payday lending entity Advance Financial. Both ventures were managed by Michael and Tina Hodges, marking Action 247 as the only online sportsbook in the U.S. owned by individuals also involved in payday lending.
License Suspension
Advance Financial, based in Nashville, is a high-interest payday lender offering loans of up to $4,000 with an exorbitant APR of 279.5%. Founded by the Hodges, the company has exhibited aggressive behavior, filing over 110,000 lawsuits against borrowers in Tennessee.
In 2021, Action 247 made headlines as the first U.S. sportsbook to have its license suspended after regulators uncovered its integration with Advance Financial’s physical locations.
This allowed customers to visit an Advance Financial office, borrow money, and instantly funnel those funds into an Action 247 betting account at the same point of sale.
The lottery board decided to suspend Action 247’s license in March 2021. A judge later allowed the suspension to be lifted so the sportsbook could continue its operations while the investigation moved forward.
According to ProPublica, shortly after the suspension, Sexton approached two members of the lottery board to voice his displeasure with the outcome. Susan Lanigan, the then-chair of the lottery board, recalled Sexton expressing his unhappiness.
In response, Sexton sponsored legislation that effectively removed the lottery board’s control over sports betting regulations, creating a new regulatory body that is more swayed by legislative influence.
The Hodges have been prominent political patrons to Sexton and his PAC, contributing approximately $105K in the past ten years, as revealed by the investigation.
With the lottery’s oversight over sports gambling stripped away, its investigation into Action 247 was dropped. Although the sportsbook continued to function, it never captured a significant portion of the market compared to larger competitors.
‘Predatory’ Practice
Action 247 ultimately shut its doors on January 16, informing users that it would no longer accept wagers and would refund their balances.
The problematic blend of high-interest lending and gambling has faced backlash from consumer advocates, who have labeled it predatory.
Former state Rep. Darren Jernigan, who sought to introduce legislation banning such arrangements, argued that there was “no method to confirm whether someone was borrowing just to gamble away the money.”
Tennessee laws still allow a payday lender to operate a gambling business, an unusual situation among states with legalized sports betting.