Published on: January 28, 2026, at 04:28h.
Updated on: January 28, 2026, at 04:28h.
- Tennessee sportsbook shut down after controversy over payday lending and gambling connections
- Investigation reveals lawmaker involvement following suspension of betting license
- Concerns regarding consumer protection and ethics raised by payday lender affiliations
The betting operations have ceased at Tennessee’s controversial online sportsbook, Action 247, which officially shut down last week, attributing its closure to its inability to compete against industry leaders like DraftKings and FanDuel. This comes despite claims of receiving political backing from Tennessee House Speaker Cameron Sexton (R-25th Dist.), as reported by ProPublica.
Action 247 attracted controversy due to its shared ownership with Advance Financial, a payday lending entity. Overall control fell to Michael and Tina Hodges, making Action 247 the sole online sportsbook in the nation operated by individuals with ties to the payday lending sector.
License Suspension
Advance Financial, based in Nashville, offers high-interest payday loans up to $4,000 with an APR of 279.5%. Founded by the Hodges, the company has a history of aggressive legal actions, filing over 110,000 lawsuits against Tennessee borrowers.
In 2021, Action 247 became the first sportsbook in the U.S. to have its license revoked after regulators determined it was integrated with Advance Financial’s physical locations.
This integration allowed clients to visit an Advance Financial office, obtain a loan, and instantly deposit those funds into an Action 247 betting account at a single counter.
The lottery board decided to suspend Action 247’s license in March 2021, but a judge later lifted the suspension to allow the company to continue operations while investigations were ongoing.
According to ProPublica, shortly after the license suspension, Sexton met with two lottery board members to voice his concerns. Susan Lanigan, then chair of the lottery board, later remarked that Sexton “expressed his displeasure” regarding the suspension.
Sexton later introduced and successfully passed legislation that stripped the lottery board of its authority over sports betting regulations, establishing a new regulatory body with closer ties to the state legislature.
The Hodges emerged as prominent political donors, contributing around $105K to Sexton and his associated political action committee over the last decade, according to the investigation.
After the lottery board lost its oversight on sports betting, its ongoing investigation into Action 247 was terminated. While the sportsbook continued its operations, it never captured substantial market share against larger operators.
‘Predatory’ Practices
Action 247 ultimately ceased all operations on January 16, informing patrons that it could no longer accept bets and that they would receive refunds for their balances.
The unusual combination of high-interest lending and gambling has faced backlash from consumer advocates who labeled it predatory.
Former state representative Darren Jernigan attempted to advance legislation to prohibit such arrangements, citing concerns that there was “no means to verify if an individual was borrowing funds only to gamble them away.”
Tennessee law still allows a payday lender to operate a gambling business, a unique scenario compared to other states that have legalized sports betting.