Tennessee Rep. Darren Jernigan is criticizing the Advance Financial Money Transmission Company, which takes deposits for gamblers to bet through Action 24/7 sportsbook. Both the loan company and the sportsbook have the same ownership.
Jernigan has filed HB 824, which would make it illegal to bet and take out a loan from the same entity. State Senator Richard Briggs has filed the same proposal on the Senate side.
“(You) take a 279 percent interest, and then gamble with it,” said Jernigan. “The only difference is you don’t get your legs broken the next day, but you can go into a cycle of debt that ends up in bankruptcy.”
The state lottery board that runs sports betting had the same concerns, but nothing in the 2019 sports betting law prohibited such crossovers, according to Legal Sports Report.
Should Jernigan’s proposals pass, lenders would not be able to offer sports betting while also permitting flex loans; loans using titles to a customer’s property, like a car, as collateral; deferred presentment services, which include accepting a check and holding it before using it as payment or deposit; or cashing checks.
