Approval Granted for Combination of Sports Betting and High-Interest Loans in Tennessee
It's like having a bar that serves cheap booze next to a rehab center – Tennessee sports betting gets a green light for a payday loan provider to act as a gambling store. The Nashville-based company, Advance Financial, with over 100 storefronts in Tennessee, has won approval to act as a one-stop shop for high-risk loans and sports betting deposits.
In a two-hour meeting, the Tennessee Education Lottery Corporation's (TELC) sports wagering committee quickly approved 11 other applications before taking a second look at Advance Financial. While some members had reservations, citing the potential for easy access to borrowed money for gambling, the company was approved in a 2-0-1 vote.
Advance Financial has been issuing flyers advertising cash deposit and withdrawal services for its affiliated sportsbook, Action 24/7, since at least November 2020. Players can use these stores to fund their sports gambling accounts in cash, avoiding the need for a bank account. This unique feature has been touted by Tina Hodges, both CEO of Advance Financial and president of Action 24/7.
Action 24/7 offers most of the same betting markets as its competitors, but sets itself apart with its local roots and cash deposit/withdrawal services. The sportsbook uses Sportradar for oddsmaking and risk management, and software supplier Amelco, like many others in the U.S. and Europe.
While some competitors also offer deposit services at partner locations, Advance Financial is the only sportsbook in Tennessee that allows customers to withdraw winnings in cash on the same day. This feature, along with the ability to deposit cash without a bank account, has garnered a following among some players.
However, Advance Financial's high-interest loans (up to 279.5% annual interest rates) have been criticized for their potential to trap borrowers in cycles of debt. Critics argue that propping up gambling with high-risk loans could exacerbate financial difficulties for those who are already struggling.
The Tennessee legislature legalized sports betting in 2019, empowering the TELC to oversee sports betting regulation. While payday lending is forbidden from selling lottery tickets, there is no such restriction for sports betting, leaving the door open for companies like Advance Financial to establish their dual services.
It remains to be seen how this unique partnership between a payday lender and an online sportsbook will unfold. As the biggest U.S. sports betting events of the season approach, controversy surrounding the link between gambling and high-interest loans could heat up. Stakeholders will need to carefully consider the potential risks and ethical implications of this new venture in Tennessee.
- The TELC's sports wagering committee approved Advance Financial to act as a gambling store for sports betting deposits, despite some reservations about easy access to borrowed money for gambling.
- Advance Financial, noted for its high-risk loans, offers cash deposit and withdrawal services for its affiliated sportsbook, Action 24/7, a feature that differentiates it from competitors.
- Action 24/7, headquartered in Tennessee, sets itself apart in sports betting by offering the same betting markets as competitors, but with local roots and cash deposit/withdrawal services.
- Critics argue that propping up gambling with high-interest loans, such as those offered by Advance Financial, could exacerbate financial difficulties for those already struggling.
- In a unique partnership, Advance Financial, a payday lender, is now also an online sportsbook in Tennessee, allowing customers to withdraw winnings in cash on the same day.
- The Tennessee legislature legalized sports betting in 2019, empowering the TELC to oversee sports betting regulation, but there is no restriction for sports betting and payday lending services being offered together.7.As the biggest U.S. sports betting events of the season approach, controversy surrounding the link between gambling and high-interest loans could heat up, and stakeholders will need to carefully consider the potential risks and ethical implications of this new venture in Tennessee.
