Scrabble Dictionary

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Yes, sanction is playable

...and is worth 13 points.

Found in the following dictionaries

Enable (Words with friends)
SOWPODS (Collins Scrabble Words)
OTCWL2014 (NASPA Word List 2014)
TWL06 (NASPA List 2006)

"Sanction" Definition

noun

A coercive measure adopted usually by several nations acting together against a nation violating international law.
A consideration, influence, or principle that dictates an ethical choice.
A law or decree.
A penalty, specified or in the form of moral pressure, that acts to ensure compliance or conformity.
Authoritative permission or approval that makes a course of action valid. See Synonyms at permission.

verb-transitive

To encourage or tolerate by indicating approval. See Synonyms at approve.
To give official authorization or approval to: "The president, we are told, has sanctioned greed at the cost of compassion” ( David Rankin).
To penalize, especially for violating a moral principle or international law.

verb

To make valid or binding usually by a formal procedure (as ratification).
To give effective or authoritative approval or consent to.