TN Sports Betting Bill That Separates Bets And Withdrawn Loans
A TN The sports betting bill that would prevent sports betting from taking bets from payday loan customers was deemed a bit too broad.
The bill was intended to prevent anyone with a high interest rate loan from Financial advance 24 hours a day, 7 days a week to bet with the company’s sister company, Act 24/7.
Action 24/7 was approved to accept cash deposits for sports betting customers at its Advance Financial branches statewide in January. Jernigan and Briggs wanted to avoid two things:
- Take money from a high interest loan and use it to fund a TN sports betting account.
- Allow loan customers to set up a sports betting account in the hope of gambling to pay off their loans.
Lawyers for Action 24/7 fought TN’s sports betting bill
Lawyers for Action 24/7 have been working overtime recently.
In addition to having obtained an injunction for Action 24/7 to end its temporary suspension and ensure that the Tennessee Educational Lottery does not exceed the jurisdiction of the court in the matter, they also lobbied against this bill.
Lawyers for Action told Briggs in a meeting earlier this week that it was possible for some of the payment providers linked to other Tennessee sportsbooks to lend money as well.
“Advance Financial has denied doing anything different, or in fact claimed less, than other online gambling sites,” Briggs said.
How many crosses are there?
Advance Financial did not respond to questions about the number of its loan clients who are also bettors with Action 24/7. One of those clients told Jernigan that his betting winnings were being kept to pay off a loan. The client ultimately decided not to testify and Advance Financial denied that this had happened.
Action 24/7 regularly promotes its ability to receive cash deposits. Sounds good on the surface, but not when money is loaned at high interest rates, vice president of U.S. policy and strategic development for EPIC Risk Management Brianne Doura-Schawohl mentionned:
“Playing with money on loan at extremely high interest rates with money that is otherwise intended for basic needs is neither better nor safer. Any suggestion that gambling is a way to pay off a loan, earn money, or solve financial problems is predatory.
Does the sports betting advisory committee play a bigger role?
A bill related to sports betting has come out of the Senate State and Local Government Committee Wednesday.
SB 588 is sponsored by Senator Ed Jackson, although Jackson said the bill came from Lieutenant Governor Randy McNally. The bill would give the Sports betting advisory committee real power.
SB 588 as amended gives the committee oversight to take disciplinary action against sports betting in the state. The committee could also meet and make its own decisions regarding sports betting without the Lottery board.
The bill was sent to the full Senate by a 9-0 vote, although Briggs – who chairs the Senate committee – is not sure this is a sufficient change:
“I know that on the lottery board there were questions about the best structure to have on this and some members felt that it had not worked very well. I’m in favor of this amendment, but I think at some point in the future we may have to look at a different structure on how we operate because there have been issues.
“We’re new to the sports betting game, but it looks like there have been issues that have arisen in a number of ways and we may need to have another structure to look at that. “