Yes, denied is in the scrabble dictionary

...and is worth 9 points by itself.

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Denied Definition

verb

Simple past tense and past participle of deny.
from the English-language Wiktionary

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Top Words by points

Points

indeed

8

2 letter words with DENIED

Points

de

3

ne

2

in

2

id

3

en

2

ed

3

3 letter words with DENIED

Points

din

4

die

4

end

4

nee

3

did

5

den

4

dee

4

4 letter words with DENIED

Points

deed

6

dene

5

deni

5

died

6

dine

5

nide

5

need

5

eide

5

5 letter words with DENIED

Points

nided

7

ended

7

dined

7

diene

6

6 letter words with DENIED

Points

indeed

8

denied

8

Found 27 words in 0.18884 seconds