Tenn. Comp. R. & Regs. 1350 — Tennessee Sports Wagering Council

Chapter 1350-01 Sports Gaming License Standards

Tenn. Comp. R. & Regs. 1350-01-.01 PURPOSE, AUTHORITY, AND APPLICABILITY

(1) This Chapter 1350-01 and Rules within this control number as promulgated by the Sports Wagering Council establish the Rules and standards that apply to the licensing requirements and conditions for sports gaming in Tennessee. This Chapter and Rules following are hereby declared necessary to uphold and maintain the integrity of sports wagering in Tennessee and to protect the public interest. The purpose of these Rules is to implement the Tennessee Sports Gaming Act, originating under 2019 Public Acts, chapter 507, codified at T.C.A. §§ 4-51-301, et seq., and as amended. 2021 Public Acts, chapter 593 amended the act and transferred its provisions to Tennessee Code Annotated, title 4, chapter 49. (the “Sports Gaming Act”). The Sports Gaming Act contains express provisions authorizing the promulgation of these Rules, as cited herein. Pursuant to 2021 Public Acts, chapter 593, the licensing, regulation, rulemaking power, and enforcement of the Sports Gaming Act shifts from the Board of the Tennessee Education Lottery Corporation (TEL) to the Tennessee Sports Wagering Council as of January 1, 2022, with these Rules. These Rules are intended to transition the regulation of this program by replacing the existing Rules promulgated by the TEL Board without lapse by carrying forward or amending the standards found in the TEL Board’s Chapter 15, Sports Gaming License Rules, Regulations and Standards. Under Section 32 of Public Chapter 593, TEL’s Chapter 15 will remain in full force and effect as the relevant standards until the first effective date of these Rules, January 1, 2022, including any version promulgated by emergency rulemaking procedures. Capitalized terms appearing herein shall have the meaning set forth in Rule 1350-01-.02, or as defined by the Sports Gaming Act. Headings of any Rule are descriptive only, and the subject matter may be addressed by multiple Rules.

(a) Additional Transition Provisions. The Council maintains its authority, in the role of continuing the regulatory framework under the Sports Gaming Act, to determine whether, under any previously applicable Rules of the TEL, a given action was permitted or prohibited at the time it occurred, or a given requirement applied, even if subsequently altered, as these findings may be pertinent to remedies or qualifications for Licensure or Registration as governed by the Council.

(b) Severability Intent. If any provision of any Rule of this Council, or application of the provision of any Rule of this Council to any Person or circumstance, is held invalid, the remainder of the Rules, and the application of the provision to Persons or circumstances other than those to which it is held invalid, shall not be affected.

(2) All Licensees, Applicants, and Registrants shall become familiar with and adhere to these Rules. In the event of a conflict between the Sports Gaming Act, and these Rules, the Sports Gaming Act will govern.

(3) Confidentiality of Certain Records and Information Not to Be Reported Publicly. The Council exercises its authority under T.C.A. § 4-49-110 to designate by Rule the type of information deemed to be confidential financial or proprietary information that is not subject to any reporting requirements under the Sports Gaming Act to the public, and to continue to designate such information as obtained by TEL under its authority in similar fashion to the TEL. Such information may include any information relating to the application, licensure, compliance, and investigatory processes described within these Rules and provided to or obtained by the TEL or its Board, the Council or any employees of the Council, including, but not limited to the following:

(a) Information previously maintained by the TEL or its Board pursuant to the Tennessee Sports Gaming Act or Rules promulgated thereunder;

(b) Information maintained by the Council pursuant to the Tennessee Sports Gaming Act or Rules promulgated thereunder;

(d) Information related to the internal controls of a Sports Gaming Operator, included but not limited to the operational controls described in Chapter 1350-03 of these Rules related to data security, risk management, fraud, AML and Unusual and Suspicious activity, prevention of access by Prohibited Participants, third-party systems, information systems and audit;

(e) Independent assessments prepared for a Licensee or Registrant;

(f) Non-public information regarding a Licensee or Registrant’s existing or anticipated contractual or business relationships;

(g) Any information related to the personal or financial investigation of any Applicant, Licensee, or Registrant, including criminal record or other background information from any source;

(h) Information provided to the Council, TEL or its Board by a governmental agency or informant or upon assurance by the Council, TEL or its Board that the information will be treated as confidential, in order to maintain the integrity of sports wagering in this state and to protect the public interest;

(i) Information and data received by the Council regarding Unusual or Suspicious Wagering Activity; and (j) Information obtained during the pendency of a private or public investigation into any suspected or reported violation of the Sports Gaming Act; and that are of the type required to carry out regulatory, taxing and disciplinary enforcement provisions of the Sports Gaming Act, but not required to be publicly reported by the Council or TEL to the Legislature or the public under the Sports Gaming Act.

Accordingly due to their character as trade secrets, private, personal, proprietary, technological, or protected financial information of individuals or business entities, criminal record or background information or the government’s derivative investigatory or legal materials pertaining to said Applicants, Licensees or Registrants, the information described in this paragraph (3) is deemed confidential by these Rules. Such confidentiality is not waived if the information and data are shared or have been shared with an authorized agent of any agency of the United States government; any state or any political subdivision of a state; or the government of any foreign country in connection with its regulatory, investigative, or enforcement authority, regardless whether such information is shared or has been shared either before or after being provided or communicated to an agent or employee of the Council, the TEL or member of its Board. The enumeration of these categories is without prejudice to identification of additional protections under state or federal law for information and records, or to the Council’s use of such information to fulfill its regulatory enforcement provisions in legal proceedings.

Notwithstanding the foregoing, the Council and TEL may disclose whether an Applicant has or had previously submitted an application for a License or Registration and any Applicant, Licensee, or Registrant waives any liability of the State of Tennessee, the TEL, its Board, or the Sports Wagering Council, or any representatives, agents, or employees thereof for any damages resulting from the disclosure or publication in any matter, except if made willfully and unlawfully.

History

Authority: T.C.A. §§ 4-49-102, 4-49-104, 4-49-106, 4-49-110, 4-49-112, 4-49-115, and 10-7-504; 2019 Tenn. Pub. Acts, Ch. 507; 2021 Tenn. Pub. Acts, Ch. 593; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-01-.02 DEFINITIONS

As used in this Chapter, and other Chapters promulgated by the Council, unless the context otherwise requires:

(1) “Account Cool-Off” means, as an alternative to Voluntary Self-Exclusion, a program specific to a Licensee as set forth in its Responsible Gaming Plan under which Players may restrict themselves by requesting the Licensee place the Player’s Sports Gaming Account in a suspended mode for a Player-selected time interval. A Player requesting Account Cool-Off is not a Prohibited Participant.

(2) “ACH” means Automated Clearing House, which is a network that connects all banking and financial institutions within the United States.

(3) “AML” means anti-money laundering.

(4) “Applicant” means an individual, group of individuals, or entity that applies for a License or Vendor Registration.

(5) “Bettor,” “Patron,” or “Player” means a Person who is:

(a) Twenty-one (21) years of age or older;

(b) Physically present in the state of Tennessee when placing a Wager;

(c) Not prohibited from placing a Wager under the Sports Gaming Act, T.C.A. § 4-49-112; and (d) Not a Prohibited Participant.

(6) “Board” or “TEL Board” means Board of Directors of the Tennessee Education Lottery Corporation.

(7) “Bond” means a bond held in escrow for the purpose of maintaining adequate reserves to account for losses suffered by a Licensee and owed to Bettors and which cannot be released without consent of the Council.

(8) “Cancelled Wager” means a Wager that was legal and appropriate when originally placed by the Bettor, but some event, circumstance or occurrence prevents the Wager from being unequivocally determined in accordance with the Licensee’s approved House Rules or Internal Control Standards.

(9) “Cash Basis” means an accounting method whereby Wagers are recognized during the period they are placed, and where the date of the event being Wagered upon is irrelevant.

(10) “Cashless Wagering System” or “CWS” means a host system whereby a Player maintains an electronic account on the host database that allows play through the use of a combination of two or more of the following for login: username, password, or personal identification number (PIN).

(11) “Cheating” means, inter alia, improving the chances of winning or of altering the outcome of a Wager, Sports Gaming System, or Sporting Event by deception, interference, or manipulation or use of Material Non-Public Information or through use of any equipment, including software pertaining to or used in relation to the equipment, used for or in connection with a Wager, Sports Gaming System, or the Sporting Event on which Wagers are placed or are invited, including attempts and conspiracy to cheat.

(12) “Council” means Tennessee Sports Wagering Council.

(13) “Event Number” means a set of alpha and/or numeric characters that correspond to a Sporting Event or an Event ancillary to a Sporting Event.

(14) “Executive Director” means the individual hired by the Council to serve as Executive Director, as provided by T.C.A. § 4-49-105(a), to direct and oversee the day-to-day operations and management of sports gaming on behalf of the Council under the Sports Gaming Act and the Council’s Rules.

(15) “Federal Excise Tax” means the net taxes upon Wagers paid to the United States Treasury by Licensees for Wagering transactions authorized by Tennessee law.

(16) “Geolocation Service” means a technology service used by an Operator to identify real-world geographic location(s) of an Internet or mobile connected remote wagering device, application or website.

(17) “Global Risk Management” means management, consultation, instruction, or transmission of information relating to Interactive Sports Gaming by a Licensee or Registrant who also holds a license to conduct sports gaming in another Permissible Jurisdiction. The term includes: the management of risks associated with Interactive Sports Gaming involving a Sporting Event or any other Event for which a Wager may be accepted; the setting or changing of Bets or Wagers, cutoff times for Bets or Wagers, acceptance or rejection of Bets or Wagers, pooling or laying off of Bets or Wagers, lines, point spreads, odds or other activity relating to Betting or Wagering.

(18) “Good Standing” means that an individual or entity is currently in compliance with the provisions of the Sports Gaming Act and these Rules, and has not, during the preceding six-month period of Licensure or Registration, been assessed an administrative fine or civil penalty by the Council, or been subject to the revocation, suspension, or nonrenewal of its License or Registration by the Council.

(19) “Gross Handle” means the total amount of Gross Wagers less Cancelled or Voided Wagers received by the Licensee over a specified period of time.

(20) “Gross Wager” means (A) all cash and Promotional Wagers received by Licensees from Bettors as Wagers; and (B) includes all Wagers placed with cash, cash equivalents, promotional items, and all other media by which a Bettor is allowed to place a Wager.

(21) “House Rules” means a written, comprehensive policy governing the acceptance of Wagers and payouts as required by T.C.A. § 4-49-122(a) and Rule 1350-01-.07(14).

(22) “Immediately” shall mean 48 hours or less, regardless of whether that 48-hour time period falls within a business day.

(23) “Immediately Notify” or “Immediately Report” means to notify or report to the Executive Director within 48 hours of a Licensee or Registrant becoming aware of an event, circumstance, action or omission that gives rise to a duty to immediately notify or report to the Council under the Sports Gaming Act or these Rules.

(24) “Independent Testing Laboratory” means an impartial entity that conducts testing and analysis of an Operator’s Sports Gaming System to assess its compliance with applicable standards and requirements as specified by these Rules.

(25) “In-Game Proposition Bet” means a Proposition Bet that is placed after the Sporting Event being Wagered on has commenced.

(26) “Institutional Investor” means (a) a bank as defined in Section 3(a)(6) of the Federal Securities Exchange Act; (b) an insurance company as defined in Section 2(a)(17) of the Investment Company Act of 1940, as amended; (c) an investment company registered under Section 8 of the Investment Company Act of 1940, as amended; (d) an investment advisor registered under

Section 203 of the Investment Advisors Act of 1940, as amended; (e) collective trust funds as defined in Section 3(c)(11) of the Investment Company Act of 1940, amended; (f) an employee benefit plan or pension fund that is subject to the Employee Retirement Income Security Act of 1974, as amended, excluding an employee benefit plan or pension fund sponsored by a publicly traded corporation affiliated with a Licensee; (g) a state or federal government pension plan; (h) a group comprised entirely of Persons specified in (a) through (g); or (i) such other Persons as the Council may determine for reasons consistent with the public policies of the State of Tennessee.

(27) “Integrity Monitoring Provider” means an independent third party that assists Licensees with the identification and reporting of Unusual or Suspicious Wagering activity.

(28) “Integrity Monitoring System” means a system of policies and procedures approved by the Council through which a Licensee identifies and reports Unusual or Suspicious activity.

(29) “Interactive Sports Gaming” means placing a Wager on a Sporting Event via the Internet, on a mobile device, or other telecommunications platform.

(30) “Internal Control Standards” mean the internal procedures, administration, and accounting controls designed by the Licensee to conduct sports gaming operations.

(31) “Key Personnel” means individuals who have the power to exercise Significant Influence Over Sports Wagering in this state and who are associated with the Applicant for Licensure or Registration as:

(a) A principal owner of more than five percent (5%) of the Applicant;

(b) A partner of the Applicant, voting member on the board of directors of the Applicant, or an officer of the Applicant, as those terms are defined in title 48 or 61, as applicable; or (c) An employee of the Applicant who principally oversees Wagering activity, Risk Management, platform management, or integrity monitoring.

(32) “Know Your Customer” or “KYC” means a software or service that is used to verify the validity of a Patron’s age and identity.

(33) “Layoff Wager” means a Wager placed by a Sports Gaming Operator with another Sports Gaming Operator for the purpose of offsetting Player Wagers.

(34) “License” means the authority to engage in Interactive Sports Gaming operations granted by the TEL prior to January 1, 2022; or the Council, pursuant to the Sports Gaming Act under T.C.A. § 4-49-117.

(35) “Licensee” means a Sports Gaming Operator approved by the TEL prior to January 1, 2022, or the Council, and operating pursuant to a License granted by the Council or the TEL under T.C.A. § 4-49-117.

(36) “Licensee-Specific Self-Exclusion List” means a list maintained by a Licensee of individuals who have requested to be restricted from establishing a Sports Gaming Account with that Licensee for a time interval selected by the individual or that the individual’s Sports Gaming Account with that Licensee be placed in a suspended mode for a time interval selected by the individual.

(37) “Material Non-Public Information” means information that has not been disseminated publicly concerning an athlete, contestant, prospective contestant, or athletic team, including, without limitation, confidential or non-public information related to the availability or plans for an athlete, team or contestant to participate in a Sporting Event, medical conditions or treatment, physical or mental health or conditioning, physical therapy or recovery, discipline, sanctions, academic status, education records, eligibility, playbooks, signals, schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or recordings of practices or other athletic activities.

(38) “MICS” means the Minimum Internal Control Standards established by the Council, pursuant to T.C.A. § 4-49-110.

(39) “Minor” means a Person who is less than twenty-one (21) years of age.

(40) “Mobile Applications” means any interactive platform for use through the Internet or other telecommunications platform, accessed via a mobile device, or computer, which has been approved by the Council for operation of Interactive Sports Gaming by a Sports Gaming Operator.

(41) “Money Line Wager” means a Wager on the outcome of a Sporting Event outright, with fixed odds in relation to the dollar amount wagered.

(42) “Multi-Factor Authentication” means an authentication procedure that uses two or more of the following factors to verify a Player’s identity:

(a) Something known only to the Player (e.g., static password, personal identification number, or answers to challenge questions);

(b) Something possessed only by the Player (e.g., digital or physical security token or onetime password provided to the Player);

(c) Something inherent to the Player (e.g., the Player’s biometric data, such as fingerprint or facial recognition); or (d) Any other factors approved by the Council.

(43) “Obvious Error” means either a human or technical error that results in a Licensee offering Wagers at terms, prices, or odds that are materially different from the general market or clearly incorrect given the chance of the event happening at the time the Wager was accepted.

(44) “Odds-Making” means the calculation, setting or adjustment of odds on the outcome of a Sporting Event or any component thereof.

(45) “Official League Data” means statistics, results, outcomes, and other data related to a Sporting Event obtained pursuant to an agreement between the Sports Gaming Operator and the relevant governing body of a sport or sports league, organization, or association whose corporate headquarters are based in the United States, or an entity expressly authorized by such governing body to provide such information to Licensees for purposes of live betting.

(46) “Online Sports Wagering Platform Software” means an integrated software system utilized by a Licensee to conduct its online sports wagering operations and through which sports wagering transactions occur.

(47) “Parlay Bet” means a single wager that incorporates two (2) or more individual Bets for purposes of earning a higher payout if each Bet incorporated within the Wager wins.

(48) “Patron Account Management Services/Software” or “PAM” means a technology service used by a Licensee to create, manage, and track a Patron’s online Sports Gaming Account and

history.

(49) “Patron Session” means a period of time when a Player is logged on to a Sports Gaming System.

(50) “Payment Processing Service” means a third-party technology system or software used to verify, facilitate, or authorize payment transactions, including any transfer of funds to or from Players.

(51) “Permissible Jurisdiction” means any jurisdiction in which Global Risk Management or the Betting or Wagering on a Sporting Event is lawful or not otherwise expressly prohibited under the laws of that jurisdiction.

(52) “Person” means an individual, group of individuals, trust, or business entity.

(53) “Personally Identifiable Information (PII)” means any information connected to a Player that can be used to uncover the Player’s identity, including, but not limited to, a Player’s SSN, name, date of birth, email address, residential address, or phone number.

(54) “Pre-Game Proposition Bet” means a Proposition Bet that is placed before the Sporting Event being Wagered on has commenced.

(55) “Prohibited Participant” means any individual: (1) who is prohibited from wagering pursuant to the Sports Gaming Act, T.C.A. § 4-49-112; (2) who is a Self-Excluded Individual; (3) whose participation may undermine the integrity of the wagering or the Sporting Event; (4) who is excluded from wagering for any other good cause; or (5) who makes or attempts to make a Wager as an agent or proxy on behalf of another.

(56) “Prohibited Wager” means an attempted or placed Wager on any Sporting Event or occurrence which is not permitted under the Sports Gaming Act or that the Council (and formerly the TEL Board while its Rules were in effect) has prohibited by Rule.

(57) “Promotional Credit” means free plays, deposit matches, odds boosts, risk-free Bets, and any other bonus that a Sports Wagering Operator offers or gives to a Player as an incentive to Wager.

(58) “Promotional Payout” means a payout by a Licensee to a Bettor in a form that cannot be immediately withdrawn by the Bettor as cash.

(59) “Promotional Wager” means a Wager placed by a Licensee using a bonus or other non-cash item.

(60) “Proposition Bet” means a Wager made regarding the occurrence or nonoccurrence during a Sporting Event of an event that does not directly affect the final outcome of the Sporting Event.

(61) “Registrant” means a Person who holds a Registration issued under T.C.A. § 4-49-133.

(62) “Registration” means approval from the Council to serve as a Vendor for Interactive Sports Gaming in the State of Tennessee, or, prior to January 1, 2022, approval from the TEL to serve as a Supplier or Vendor, as those terms were defined in any previous Rules of the TEL.

(63) “Resettled Wager” means a Wager that was originally settled incorrectly by a Licensee due to a statistical correction, technical error, or human error.

(64) “Responsible Gaming Limit” means a Licensee’s program as set forth in its Responsible Gaming Plan for allowing a Player to implement a self-imposed limit on any or all of the following: Wagers, losses, deposits, session time, or daily time.

(65) “Responsible Gaming Plan” means a Licensee’s policies, procedures, and processes for responsibly conducting Interactive Sports Gaming in the State of Tennessee.

(66) “Risk Management” means the management of risks associated with Wagering, including but not limited to a combination of one or more of the following: the setting or changing of odds, cutoff times for Wagers, acceptance or rejection of Wagers, laying off of Wagers, and other similar activity relating to Wagering.

(67) “Self-Excluded Individual” means any individual whose name is included, at his or her own request, on the Statewide Self-Exclusion List or on a Licensee-Specific Self-Exclusion List.

(68) “Significant Influence Over Sports Wagering” means the authority to make decisions regarding the daily operations of a Licensee or Registrant in Tennessee related to Wagering activity, Risk Management, platform management, integrity monitoring, or other similar essential functions related to sports Wagering, as determined in the sole discretion of the Council.

(69) “Sporting Event” or “Event” means any professional sporting or athletic event, including motorsports and e-sports, any collegiate sporting or athletic event, or Olympic sporting or athletic event sanctioned by a national or international organization or association, as authorized by the Council pursuant to these Rules. Sporting Event does not include horseracing.

(70) “Sportsbook Risk Management or Odds-Making Services or Software” means the services used by a Licensee to identify, assess, and limit the risks associated with sports Wagering operations, including Odds-Making Services used by a Licensee to price Wagering markets accurately and to avoid overexposure to a particular Sporting Event outcome.

(71) “Sports Data Feed” or “Sports Data Software” means a technology system or software that provides statistical information used by Operators related to the various aspects of Sporting Events. Sports data may include, but is not limited to, scores, player and team performance metrics, game outcomes, player profiles, and historical records.

(72) “Sports Gaming Account” means an account established by a Licensee for an individual Patron to use for Interactive Sports Gaming.

(73) “Sports Gaming Act” means the Tennessee Sports Gaming Act, originally codified at T.C.A. §§ 4-51-301, et seq., as amended from time to time. Pursuant to Pub. Ch. 593 (2021), the provisions of the Sports Gaming Act are transferred to T.C.A. §§ 4-49-101, et seq., effective January 1, 2022.

(74) “Sports Gaming Operator” means a Licensee authorized under the Sports Gaming Act and these Rules to offer and operate Interactive Sports Gaming.

(75) “Sports Gaming System” means any combination of hardware, software, data networks, and communications used to manage, administer, or control sports wagering that comprise the system used for the purpose of offering Interactive Sports Gaming by electronic means, including, but not limited to Mobile Applications or Internet sites accessed via a mobile device or computer.

(76) “Sports Gaming System Operational Assessment” means an assessment performed by an Independent Testing Laboratory that assesses the Sports Gaming System’s compliance with the Sports Gaming System requirements set forth in these Rules.

(77) “Sports Gaming System Technology Integrity and Security Assessment” means an assessment performed by an Independent Testing Laboratory that assesses the Sports Gaming System’s technological integrity and security requirements set forth in these Rules.

(78) “Statewide Self-Exclusion List” means a list maintained by the Council of individuals who have requested to be restricted from establishing a Sports Gaming Account with all Licensees in Tennessee for a time interval selected by that individual or that the individual’s Sports Gaming Accounts with all Licensees in Tennessee be placed in suspended modes for a time interval selected by the individual.

(79) “Suspicious Wagering Activity” means activity related to Interactive Sports Gaming, Sporting Events, or Sports Gaming Accounts that violates the Sports Gaming Act or these Rules; that is made by an agent, proxy, Prohibited Participant, or Minor; or that is indicative of match-fixing, the manipulation of an event, misuse of inside information, sports corruption, or other prohibited activity.

(80) “TEL” means the Tennessee Education Lottery Corporation.

(81) “Unusual Wagering Activity” means abnormal activity related to Interactive Sports Gaming, Sporting Events, or Sports Gaming Accounts exhibited by Players and deemed by a Licensee or the Council as a potential indicator of Suspicious Wagering Activity.

(82) “Vendor” means a person who:

(a) Provides one (1) or more of the following:

Geolocation Services;
Online Sports Wagering Platform Software;
Patron Account Management Services/Software;
Sportsbook Risk Management or Odds-Making Services or Software;
Sports Data Feeds or Software, including Official League Data feeds and software;
“Know Your Customer” or “KYC” software or services; or 7. Payment Processing Services;

(b) Serves as an Independent Testing Laboratory to assess interactive sports wagering platforms, integrity, or security;

(c) Has direct interface or interaction with patron accounts or interactive sports wagering platforms, as determined by the Council;

(d) Receives payment or compensation based on a revenue sharing agreement in which the Vendor receives a percentage of the adjusted gross income of the Licensee; or (e) Provides similar services that are material to conducting interactive sports wagering, as determined by the Council; and (f) “Vendor” does not include marketing affiliates who are compensated by a method other than a revenue sharing agreement.

(83) “Voided Wager” means a Wager that a Licensee voids after acceptance because the Wager is determined by the Licensee, the Council, or the Executive Director to be prohibited under the Tennessee Sports Gaming Act, rules promulgated by the Council, other state laws, or prohibited or otherwise invalid pursuant to the Licensee’s approved House Rules or Internal Control Standards.

(84) “Voluntary Self-Exclusion” means a program under which individuals may become Prohibited Participants by requesting placement on the Statewide Self-Exclusion List or on a Licensee- Specific Self-Exclusion List.

(85) “Voucher” means a printed wagering instrument, or digital representation thereof, used in a Cashless Wagering System that has a fixed dollar wagering value and is redeemable for cash or cash equivalents as approved by the Council.

(86) “Wager” or “Bet” means a sum of money or thing of value that is risked by a Bettor on the unknown outcome of one (1) or more Sporting Events, including, but not limited to, the form of fixed-odds betting, a future bet, live betting, a money line bet, pari-mutuel betting, parlay bet, pools, proposition bets, spread bet, or in any other form or manner as authorized by Rule of the Council. Wager or Bet shall exclude any sum of money or thing of value risked on an unknown outcome pursuant to the Fantasy Sports Act, T.C.A. §§ 4-49-201, et seq.

(87) “Written Notice” means delivery by mail, overnight courier service, or e-mail.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4- 49-104, 4- 49-105, 4- 49-106, 4- 49-110, 4-49-112, 4- 49-114(a), 4- 49-115, 4- 49-115(f), 4- 49-117, 4-49-119(b), 4-49-122, 4- 49-133, and 4-49-201; 2019 Tenn. Pub. Acts, Ch. 507; 2021 Tenn. Pub. Acts, C h. 593; 2023 Tenn. Pub. Acts, Ch. 143; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.03 GENERAL RULES

(1) In order to accept a Wager in the State of Tennessee, a Sports Gaming Operator must obtain a License from the Council. In order to serve as a Vendor for Interactive Sports Gaming, Registration with the Council must be made in advance. Upon being awarded a License or being registered as a Registrant, each Licensee and Registrant agrees that it shall comply with all terms, conditions, obligations, and requirements set forth in the Sports Gaming Act and the Council’s Rules, as they may be amended from time to time, as well as all other local, state, and federal laws, rules, and regulations.

(2) Each Licensee and Registrant shall agree to indemnify and to hold harmless the Council, the TEL, and the TEL Board, against any and all actions, claims, and demands of whatever kind or nature that the Council or TEL may incur by reason of or in consequence of permitting them or having permitted them to operate as a Licensee or Registrant under the Sports Gaming Act.

(3) The Council shall not be required to issue a License to, or approve Registration for, an Applicant unless and until it is satisfied that the Applicant meets the requirements for a License or Registration in all aspects of Interactive Sports Gaming in Tennessee.

(4) Wagers may only be placed via the Internet, mobile device, or computer through Sports Gaming Systems operated by Licensees only within the geographic boundaries of the State of Tennessee.

(5) The server or other equipment used to accept Wagers shall be located within the boundaries of the State of Tennessee.

(6) Sports Gaming Operators may not directly or indirectly operate or supply kiosks, service stations, terminals, mobile devices, computers, or other devices or equipment for the purpose of Players establishing or accessing Sports Gaming Accounts at any physical location within the State of Tennessee.

(7) Players must be affirmatively identified by the Sports Gaming Operator as being 21 years of age or older and physically present in the State of Tennessee at the time the Wager is placed.

(8) Sports Gaming Operators shall submit Written Notice to the Council at least 72 hours in advance of offering to the public an Event or the opportunity to place a Wager on an Event that has not previously been deemed a Sporting Event by the Council. This notice must include (a) the name of the sports governing body in charge of administering the Event and (b) a description of the policies and procedures regarding the Event and Wagering integrity.

(9) A Sports Gaming Operator shall not permit a Wager to be placed on the following:

(a) Injuries, penalties, or other such occurrences, the Wager on which would be contrary to public policy, unfair to consumers, or deemed to violate Article Xl, Section 5 of the Constitution of Tennessee;

(b) Individual actions, events, statistics, occurrences, or non-occurrences to be determined during a collegiate Sporting Event, including, without limitation, In-Game Proposition Bets on the performance or non-performance of a team or individual participant during a collegiate Sporting Event; and (c) Amateur sports events, including all high school and youth league sports events, except for sports events that are approved by the Council, in which Persons under age 18 make up a minority of the participants.

(10) All Licensees and Registrants shall assist the Council with safeguarding the integrity of Interactive Sports Gaming.

(a) Sports Gaming Operators shall utilize the services of an Integrity Monitoring Provider.

(b) All Licensees and Registrants shall cooperate with investigations conducted by the Council, law enforcement, other government agencies, and integrity-related investigations by sports governing bodies, regarding any aspect of sports wagering in the state. At the request of the Council, sports governing bodies, or law enforcement agencies for the purpose described herein, Licensees shall provide or facilitate the provision of account-level betting information and data files relating to Persons placing Wagers.

(11) Registry of Ineligible Bettors (a) The Council shall post on its website the categories set forth in T.C.A. § 4-49-112(a) of Persons who are ineligible to place a Wager in this state.

(b) A Licensee’s knowing acceptance of Wagers from Persons or categories of Persons set forth in T.C.A. § 4-49-112(a) shall be grounds for disciplinary action.

(12) Layoff Wagers A Licensee may accept a Layoff Wager from another Licensee that conforms with all federal and state law requirements. A Sports Gaming Operator placing a Layoff Wager shall inform the Sports Gaming Operator that the Layoff Wager is being made by or on behalf of a Sports Gaming Operator and disclose its identity to the licensed Sports Gaming Operator accepting the Layoff Wager.

(13) Post-Service Restrictions (a) The following Persons may not apply for a License or register as a Vendor, or represent any current or prospective Licensee or Registrant before the Council:

Any member or employee of the Council, during the term of their employment by, or membership on, the Council, and for a period of one (1) year thereafter.

For purposes of this Rule, “represent” shall mean to communicate directly with the Council or Council staff for the purpose of advocating on behalf of a current or prospective Licensee or Registrant.

(b) No Person identified in Rule 1350-01-.03(13)(a)1. may be employed as a lobbyist in Tennessee, as defined by T.C.A. § 3-6-301(15)(A), by a current or prospective Licensee or Registrant for a period of one (1) year following their employment by or membership on the Council.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4-49-105, 4-49-106, 4-49-110, 4-49-111, 4-49-112, 4-49-114,4- 49-114(a), 4-49-115, 4-49-115(f), 4-49-116, 4-49-117, 4-49-125, 4-49-126, 4-49-127, and 4-49-128; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.04 LICENSING AND REGISTRATION

The Council shall grant the following type of License or approve the following types of Registration:

(1) Sports Gaming Operator License (a) A Person who offers Interactive Sports Gaming to the public shall be considered a Sports Gaming Operator and shall be required to obtain a Sports Gaming Operator License.

(b) For the first year of licensure, the annual licensing fee shall be seven hundred fifty thousand dollars ($750,000), as described in Rule 1350-01-.05 (Application Process).

For the second or subsequent year of licensure, the annual licensing fee, as described in Rule 1350-01-.12 (Renewal of License), shall be:

For Licensees receiving one hundred million dollars ($100,000,000) or more in Gross Wagers in the immediately preceding twelve-month period, seven hundred fifty thousand dollars ($750,000); and 2. For Licensees receiving less than one hundred million dollars ($100,000,000) in Gross Wagers in the immediately preceding twelve-month period, three hundred seventy-five thousand dollars ($375,000).

(c) Applicants seeking to obtain a License shall complete the (i) Business Entity Disclosure Form; (ii) any supplement thereto prepared by the Council; and (iii) any additional forms required or requested by the Council. Current versions of the forms will be made available on the Council’s website.

(d) Key Personnel of the Applicant seeking to obtain a License, and any other individual associated with the Applicant in the sole and absolute discretion of the Council shall complete the (i) Multijurisdictional Casino/Gaming License Personal History Disclosure Form; (ii) any supplement thereto prepared by the Council; and (iii) any additional forms, documents, or information requested by the Council. All current versions of the forms will be made available on the Council’s website.

(e) An Institutional Investor may seek a waiver to own up to 25% of an Applicant for investment purposes only. An Institutional Investor shall not be required to complete the forms identified in subparagraph (d) above. The Council may request any relevant information from the Institutional Investor to assist with its determination of whether a waiver shall be granted.

(f) Applicants for a License that also perform functions or services identified as Vendor activities are required to obtain only a License. A Vendor Registration does not authorize such Registrants to perform, provide, or engage in activities requiring a License.

(2) Vendor Registration (a) Vendors shall be required to register with the Council as a Vendor.

(b) A Vendor Registration shall be valid for three (3) years.

(c) Applicants seeking Registration as a Vendor shall complete the (i) Business Entity Disclosure Form; and (ii) any supplement thereto required by the Council.

(d) Key Personnel of the Applicant seeking Registration as a Vendor shall complete the (i)

Multijurisdictional Casino/Gaming License Personal History Disclosure Form; and (ii) any supplement thereto required by the Council.

(f) Registration does not authorize a Vendor to perform, provide, or engage in activities requiring a License.

(g) An Applicant for Registration as a Vendor shall pay a Registration fee:

For the first three-year period after registration, if the registration is approved, of one hundred fifty thousand dollars ($150,000). Fifty thousand dollars ($50,000) of the fee is due within ten (10) days of approval of the registration, fifty thousand dollars ($50,000) of the fee is due on the first anniversary of registration, and fifty thousand dollars ($50,000) of the fee is due on the second anniversary of registration; and 2. For the second or subsequent period of registration if the registration is approved, registration fee as follows:

(i) For Vendors providing Geolocation Services, Online Sports Wagering Platform Software, or Patron Account Management Services/Software, a registration fee in the amount of one hundred fifty thousand dollars ($150,000). Fifty thousand dollars ($50,000) of the fee is due within ten (10) days of approval of the registration, fifty thousand dollars ($50,000) of the fee is due on the first anniversary of registration, and fifty thousand dollars ($50,000) of the fee is due on the second anniversary of registration;

(ii) For Vendors providing Sportsbook Risk Management Services, Odds- Making Services, or Sports Data Feeds or Software, a registration fee in the amount of seventy-five thousand dollars ($75,000). Twenty-five thousand dollars ($25,000) of the fee is due within ten (10) days of approval of the registration, twenty-five thousand dollars ($25,000) of the fee is due on the first anniversary of registration, and twenty-five thousand dollars ($25,000) of the fee is due on the second anniversary of registration;

(iii) For Vendors providing Independent Testing Laboratory services, a registration fee in the amount of forty-five thousand dollars ($45,000).

Fifteen thousand dollars ($15,000) of the fee is due within ten (10) days of approval of the registration, fifteen thousand dollars ($15,000) of the fee is due on the first anniversary of registration, and fifteen thousand dollars ($15,000) of the fee is due on the second anniversary of registration;

(iv) For Vendors providing KYC or Payment Processing Services, services in which the Vendor has direct interface or interaction with Patron accounts or Interactive Sports Wagering Platforms, as determined by the Council, services in which the Vendor receives payment or compensation based on a revenue sharing agreement (in which the Vendor receives a percentage of the adjusted gross income of the Licensee), or similar services that are material to conducting Interactive Sports Wagering, as determined by the council, a registration fee in the amount of thirty thousand dollars ($30,000).

Ten thousand dollars ($10,000) of the fee is due within ten (10) days of approval of the registration, ten thousand dollars ($10,000) of the fee is due on the first anniversary of registration, and ten thousand dollars ($10,000) of the fee is due on the second anniversary of registration.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102(27), 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-117, 4-49- 125, and 4-49-133; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.05 APPLICATION PROCESS

(1) An application for any type of License or Registration under these Rules shall be on forms issued by the Council and available on the Council’s website, in accordance with requirements of the Sports Gaming Act.

(2) The application for a Sports Gaming Operator License or Registration as a Vendor shall, at a minimum, include the following:

(a) The Applicant’s legal name, including any DBA, if applicable, and form of business entity;

(b) The mailing address of the Applicant and, if a business entity, its state of formation, and the location of its principal place of business;

(c) The names, addresses, taxpayer identification numbers, and dates of birth of each Key Personnel of the Applicant, along with three years of income tax returns for same;

(d) The names, addresses, and employer identification numbers, as applicable, of each individual, group of individuals, trust or business entity associated with an Applicant, including, but not limited to, a holding company, parent company, or subsidiary company of the Applicant that has the ability to control the activities of the Applicant or elect a majority of the board of directors or select the manager or general partner of the Applicant (excluding any bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business);

(e) For Sports Gaming Operator License Applicants, information, documentation, and assurances as may be required by form to establish by clear and convincing evidence that the Applicant has sufficient business ability and sports gaming experience to create and maintain a successful, efficient Interactive Sports Gaming operation. Sports Gaming Licensure Applicants shall submit an audit of the financial statements and condition of the Licensee’s Interactive Sports Gaming operations in the State of Tennessee prepared within the preceding twelve-month period by a Certified Public Accountant in accordance with generally accepted accounting principles and applicable state and federal law, if available. If an Applicant has audited financial statements prepared at the parent company level, the Applicant shall include with its audited consolidated financial statements a supplemental schedule (either audited or unaudited) of the Licensee Applicant’s Interactive Sports Gaming operations in Tennessee or an attestation from the Licensee Applicant’s Certified Public Accountant that the Applicant has implemented procedures to accurately report all financial data necessary to determine privilege taxes owed by the Applicant from Interactive Sports Gaming operations in Tennessee. If an Applicant has not previously been engaged in business operations prior to applying for licensure, the Applicant shall submit documents that establish, by clear and convincing evidence, that the Applicant has made sufficient arrangements to fund its proposed sports Wagering operations.

(f) For Registrant Applicants, financial statements of the Registrant Applicant’s financial condition prepared within the preceding twelve-month period in accordance with generally accepted accounting principles and applicable state and federal law. A Registrant Applicant may provide financial statements prepared at the parent company level.

(g) For Sports Gaming Operator License Applicants, a description of the proposed internal controls and security systems to be used in conducting sports wagering or processing sports wagering transactions, as may be applicable;

(h) The number of employees expected to be employed by the Licensee or Registrant in the State of Tennessee;

(i) For Sports Gaming Operator License Applicants, the estimated privilege tax revenue to be generated by the Sports Gaming Operator for the first three (3) years of operation;

(j) For Sports Gaming Operator License Applicants, the estimated economic benefit to the State of Tennessee of the proposed License. The estimate may include, but not be limited to, the following: projected amount of annualized gross revenue; estimated new capital investment for the project; scientific or market research performed by the Applicant or its contractors; and such other information as may be requested by the Council;

(k) A copy of the Applicant’s certificate of good standing and authorization to conduct business in the state of Tennessee;

(l) A list of jurisdictions where the Applicant has (i) applied for a sports wagering or gaming license; (ii) been issued a sports wagering or gaming license; (iii) been the subject of a law enforcement or government subpoena, cease and desist letter, attorney general or government legal opinion, or other correspondence regarding any non-routine law enforcement or government investigation concerning conduct related to gambling operations (including casino gaming, horse racing, dog racing, pari-mutuel, lottery, sports betting, daily fantasy sports, etc.) in any jurisdiction; or (iv) had any sports wagering or gaming license denied, suspended, or revoked, and the status and copies of such documents relating to (iii) or (iv);

(m) A list of all jurisdictions where the Applicant and its Key Personnel have conducted gaming or sports Wagering operations or provided services to a Sports Gaming Operator conducting gaming or sports Wagering operations.

(n) Notice and a description of civil judgments obtained against the Applicant and any Key Personnel thereof, pursuant to the laws of the federal government, of the State of Tennessee or of any other state, jurisdiction, province, or country;

(o) Description of any bankruptcy, insolvency, or liquidation actions filed by or against the Applicant or any Key Personnel thereof;

(p) The Council will compile a national or, as applicable, international criminal history and background report on the Sports Gaming Operator License Applicant, Vendor Registrant, and Key Personnel thereof, including fingerprint submittals by individuals described in this subparagraph, conducted by the TBI, other U.S. or international law enforcement agency, Council staff, or other private security firm under contract to the Council. Said report shall include review of whether the Sports Gaming Operator License Applicant and Vendor Registrant, or any individual described in this subparagraph, has engaged in gaming activity in any jurisdiction in which such activity is illegal; and (q) Any other information the Council considers necessary and appropriate to determine by clear and convincing evidence the competency, law abiding nature, suitability, honesty and integrity of Applicant.

(3) As required by the Sports Gaming Act, each Sports Gaming Operator License Applicant shall submit ancillary documentation necessary for the Council to assess fully the Applicant’s operations and compliance with the Sports Gaming Act. Each Sports Gaming Operator License Applicant shall submit with its application, made under oath, the following:

(a) Applicant’s plan to provide data files, in a format and timeline approved by the Council, to the Council to confirm Applicant’s calculation of the privilege tax to be paid each month.

(b) Applicant’s most recent Sports Gaming System Operational Assessment.

(d) Applicant’s Internal Control Standards as required by Chapter 1350-03 of these Rules, including:

A certification by the Licensee’s chief executive officer, chief compliance officer, general counsel, or other senior management official with similar responsibilities that the submitted Internal Control Standards conform to the requirements of

Chapter 1350-03 of these Rules; and 2. A certification by the Licensee’s chief financial officer or other senior management official with similar responsibilities that the submitted Internal Control Standards:

(i) Establish a consistent overall system of internal controls;

(ii) Provide reasonable assurance that there are adequate controls in place to detect material errors or misrepresentations in financial reporting; and (iii) Conform to the requirements of Chapter 1350-03 of these Rules.

(e) Applicant’s Responsible Gaming Plan, including Applicant’s methodology and process for Voluntary Self-Exclusion; maintenance of the Licensee-Specific Self-Exclusion List; preventing the placing of Wagers by individuals on the Licensee-Specific Self-Exclusion List, the Statewide Self-Exclusion List, and the ineligibility categories in T.C.A. § 4-49- 112(a); and information about how Applicant will use Player data and technology to aid in identifying problem gamblers.

(f) Applicant’s plan and policy governing the acceptance of Wagers and making payouts (i.e., House Rules), which must be approved by the Council.

(g) Procedures for issuance and acceptance of Promotional Credit for sports wagering.

(h) Applicant’s customer service phone number and e-mail address for responding to public and Patron inquiries and questions originating from the State of Tennessee or relating to sports gaming operations in the State of Tennessee. Once Applicant receives its License, the Council shall post the Licensee’s customer service phone number and email address on its website.

(i) A list of Key Personnel for the State of Tennessee, specifically. The list must include the name, home address, date of birth, work location, title, and job description.

(j) A description of Applicant’s expected use of Geolocation Services to prevent Wagers from outside the State of Tennessee.

(k) The method by which the Sports Gaming Operator will identify and cancel Wagers, including defining “Obvious Error.”

(l) The Applicant’s Terms and Conditions for sports Wagering in Tennessee, which must be approved by the Council.

(4) An Applicant seeking registration as a Vendor providing Geolocation Service shall additionally provide the SWC with access to its geolocation system or a dashboard or application utilized by the Geolocation Service Vendor Applicant which:

(a) Is customizable and provides geolocation data and visuals on demand;

(b) Provides historical geolocation data for the prior six months;

Time period;
User ID;
Operator name;
Device identifier;
Country, state and city;
Passed/failed transactions and failure reasons;
IP addresses;
Device type and device operating system; and 9. Distance to border or boundary;

(d) Provides an interactive mapping tool capable of, at a minimum, displaying locations of geolocation transactions; and (e) Provides data, visuals, and reporting capabilities identifying suspicious activity, such as malicious or repeated location spoofing, account sharing and device sharing, and inconsistent locations (location jumping).

(5) An Applicant shall notify the Council in writing of any material change to its application within ten (10) business days of the change. Notwithstanding the foregoing, an Applicant shall notify the Council of all changes to its Key Personnel within three (3) business days of the change.

An Applicant shall complete all Key Personnel disclosures, including a statement as to any conflict of interest that may exist due to the changes in Key Personnel, within thirty (30) days of the change.

(6) For a Sports Gaming Operator License, Applicant shall submit a nonrefundable application fee of fifty thousand dollars ($50,000) due at the time the initial or renewal application is submitted.

Failure to submit the $50,000 application fee shall cause the application to be rejected or cause a delay in the processing of an application. Upon approval of the application, the $50,000 application fee shall be applied to the Sports Gaming Operator’s licensing fee provided for by

Rule 1350-01-.04(1)(b). The total fee shall be paid in full within ten (10) days of approval of the License or prior to expiration of the annual renewal period, which shall be one (1) year from the date of the issuance of the License.

(7) Application fees, license fees, registration fees, background or investigative fees or costs, or any other fees or costs related to an application or renewal will not be refunded if an application for a License or Registration is withdrawn after submission.

(8) Any Applicant shall complete such additional forms or provide such additional information as may be requested by the Council.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4-49-106, 4-49-110, 4-49-112(b), 4-49-115, 4-49-115(f), 4-49- 117, 4-49-119(b), 4-49-120, 4-49-125, and 4-49-133; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.06 APPROVAL OR DENIAL OF AN INITIAL APPLICATION

(1) In accordance with the Sports Gaming Act, T.C.A. § 4-49-120, the Council shall not grant a License or approve a Registration for an Applicant that has one or more of the following individuals associated with it as Key Personnel:

(a) Any Person identified in 1350-01-.03(13)(a);

(b) An employee of, coach of, player for, or person who is a member or employee of a governing body of, a sports team, league, or association, upon which Wagers are permitted to be placed; or (c) A Person having the ability to directly affect the outcome of a Sporting Event.

(2) Applicants shall not be issued a License or approved for Registration if they, or any of their Key Personnel, have been convicted of any felony. Applicants shall not be issued a License, approved for Registration if they, or their Key Personnel, have been convicted of any gamblingrelated offense that the Council finds threatens the integrity of sports wagering in Tennessee and the public interest.

(3) In all cases, the Council shall have sole authority to approve, condition, or deny an application for a License or Registration, or renewal thereof.

(4) In determining whether to approve or deny an application for a License or Registration the Council may consider the following factors:

(a) Whether the Applicant is proposing an Interactive Sports Gaming operation that will have a positive impact through increased revenues to the State of Tennessee.

(b) Whether the Applicant possesses adequate funds or has secured adequate financing to commence and maintain an Interactive Sports Gaming operation or serve as a Vendor.

(c) Whether the Applicant has the financial stability, integrity, and responsibility to conduct Interactive Sports Gaming, or serve as a Vendor for Interactive Sports Gaming.

(d) Whether the Applicant has sufficient business ability and experience to create and maintain a successful Interactive Sports Gaming operation or serve as a Vendor for Interactive Sports Gaming.

(e) Whether the Sports Gaming Operator License Applicant has proposed adequate measures for security of any Sports Gaming System, server, or components thereof.

(f) Whether the Sports Gaming Operator License Applicant has demonstrated that its proposed Interactive Sports Gaming operation will be conducted in accordance with the Sports Gaming Act and all other applicable local, state, and federal laws, and has satisfied the requirements set forth in these Rules.

(g) Whether the Applicant or its Key Personnel have been:

Convicted of a disqualifying offense, as established by the Sports Gaming Act;
Arrested, charged, indicted, or have received a target letter from the U.S.

Department of Justice in connection with any investigation of offshore sports gaming activities that serviced the United States;

Arrested, charged with, convicted of, pleaded guilty to, or forfeited bail concerning any criminal offense under the laws of any jurisdiction, other than for a minor traffic offense; or 4. Indicted of any felony, gambling-related offense, or any other offense(s) that the Council finds will threaten the integrity of sports wagering in Tennessee and the public interest.

(h) The past and present compliance of the Applicant, its affiliates, or affiliated companies relating to gaming operations or activities in any other jurisdiction, including, but not limited to, whether the Applicant has a history of non-compliance with the gaming requirements or prohibitions of any jurisdiction.

(i) Whether the Applicant has knowingly made a false statement of a material fact in any application or other communication to the Council or failed to disclose to the Council a violation of this Rule by Applicant, as applicable.

(j) Whether the Applicant has had a license to operate any gaming or sports wagering activity suspended or revoked or been denied from operating any gaming or sports wagering activity by any governmental authority responsible for the regulation of gaming activities in any jurisdiction.

(k) Whether an Applicant has timely remitted the balance of any application, license, or other fees when due to the Council.

(l) Whether the Applicant has filed, or had filed against it, a proceeding for bankruptcy, liquidation, or insolvency or has ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt.

(m) Whether the Applicant has been served with a complaint, lien, or other notice filed with any public body regarding a payment of any tax or obligation required under any law in any jurisdiction, where the Applicant has been in breach for one or more years.

(n) Whether the Applicant is or has been a defendant in litigation involving its business practices that would call into question its suitability to obtain a License or Registration.

(o) Whether the Sports Gaming Operator License Applicant has submitted a Responsible Gaming Plan that meets the Council’s requirements.

(p) Whether the Sports Gaming Operator License Applicant has demonstrated that it has met the reserve requirements, including obtaining the required Bond set forth in these Rules.

(q) Whether the Sports Gaming Operator License Applicant has met the insurance requirements set forth in these Rules.

(r) Whether the Applicant has submitted financial statements in accordance with these Rules.

(s) Whether the Sports Gaming Operator License Applicant has submitted a Sports Gaming System Operational Assessment by an Independent Testing Laboratory in accordance with these Rules.

(t) Whether the Sports Gaming Operator License Applicant has submitted a Sports Gaming System Technology Integrity and Security Assessment by an Independent Testing Laboratory in accordance with these Rules.

(u) Whether the Sports Gaming Operator License Applicant has established the bank account required by Rule 1350-01-.07(5) for the payment of privilege tax.

(v) Whether the Sports Gaming Operator License Applicant has submitted House Rules in accordance with these Rules.

(w) Whether the Sports Gaming Operator License Applicant has submitted Terms and Conditions in accordance with these Rules.

(x) Whether the Sports Gaming Operator License Applicant has developed Internal Control standards in accordance with Chapter 1350-03.

(y) Whether the Sports Gaming Operator License Applicant has demonstrated that it has appropriate procedures and controls in place to meet the requirements related to Sports Gaming Accounts in accordance with these Rules.

(z) Whether awarding a License or approving a Registration would undermine the public’s confidence in the Interactive Sports Gaming industry in the State of Tennessee.

(aa) Whether the Sports Gaming Operator License Applicant is utilizing the services of an Integrity Monitoring Provider.

(bb) Whether the Applicant meets other prescribed standards for the issuance of a License or approval of a Registration, as set forth in these Rules.

(5) Completed Applications for Initial Licensure or Registration.

(a) Upon receipt of an application, the Council shall review it for completeness and submit the requisite information to the appropriate investigative individual or entity to conduct the criminal history review and report.

(b) In the event the review of the application reveals a deficiency, the Council shall notify the Applicant in writing (which may include e-mail). The Council shall have no obligation to continue to review the application until the deficiency is corrected.

(c) Upon a determination that the application is complete, the Council shall notify the Applicant in writing (which may include e-mail) that the application has been deemed complete. The Council shall approve or deny the application within ninety (90) calendar days of it declaring the application complete.

Despite this determination, the Council may continue to request additional information from Applicant. If, as a result of the investigation into the background of the Applicant or its affiliated Persons or entities, a sufficient amount of additional information is required to be provided, the Council may notify the Applicant in writing (which may include e-mail) at the time of the request for additional information that it is suspending or revoking its determination of application completeness.

(d) In the event the Council suspends its determination of completeness, such suspension shall remain in place until such time as the additional requested information is provided by Applicant. The imposition of a suspension of completeness will result in a resetting of the ninety (90) day timeframe for the Council to approve or to deny the application.

(6) Sports Gaming Operator License and Vendor Registration Applicant Background Investigations for Initial Licensure or Registration.

(a) Upon determination that each Key Personnel application is complete, the Council shall initiate an investigation into the background of Applicant’s Key Personnel, excluding Institutional Investors.

(b) The Council shall conduct a due diligence investigation of the Applicant to assess whether a License shall be awarded or Registration approved. The investigation will focus on integrity, background, responsibility, financial stability, criminal history, reputation, character, and ability to perform scope of services and shall require documents and information as specified on the forms available on the Council’s website.

(c) Criminal history background investigations shall include the submission of fingerprints to the Tennessee Bureau of Investigation, Federal Bureau of Investigation, or any other foreign government agency, public or private, deemed to be appropriate by the Council.

Applicant will be required to disclose the following information and include a description of the circumstances, dates, location, nature of violation, disposition, and status:

Whether the Applicant or any Key Personnel have been arrested, charged, or convicted of a criminal offense in any jurisdiction, excluding minor traffic violations, such as parking tickets, speeding, etc.;
Whether the Applicant or any Key Personnel have been subject to any disciplinary action or non-routine investigation by any administrative, governmental, law enforcement, or regulatory body; and 3. Whether the Applicant or any Key Personnel have been charged with a violation of any statute, rule, regulation, or ordinance of any administrative, regulatory, or other governmental body.

(d) A Sports Gaming Operator License Applicant’s financial stability review shall include the following information:

Whether the Sports Gaming Operator License Applicant or its Key Personnel have been in default of paying any taxes, fees, or other obligations owed to the State of Tennessee, any local governmental entity in Tennessee, or the federal government;
Documents evidencing the financial activities and stability of the Sports Gaming Operator License Applicant and its Key Personnel, including bank statements of the Sports Gaming Operator License Applicant, business and personal income and disbursement schedules, tax returns, or other documentation satisfactory to the Council that demonstrate by clear and convincing evidence that the Sports Gaming Operator License Applicant has sufficient business ability and experience to establish and maintain a successful Interactive Sports Gaming operation or business; and 3. Documents evidencing the ability of the Sports Gaming Operator License Applicant to meet ongoing operating expenses necessary for the maintenance of continuous and stable Interactive Sports Gaming operations or business and the Sports Gaming Operator License Applicant’s ability to pay, as and when owed, winning Wagers and all state and federal taxes.

(7) Geolocation Requirements.

(a) Prior to Licensure, a Sports Gaming Operator License Applicant must demonstrate that it utilizes a geolocation system that provides the following functions, at a minimum:

Detects the physical location of a Player attempting to access any Sports Gaming System;
Monitors and blocks unauthorized attempts to place a Wager using the Sports Gaming System;
Ensures that a Player is continually located within the geographical boundaries of Tennessee when the Wager is initiated and received. If the session is longer than a single Bet or Wager:

(i) Rechecks the geographical location every twenty (20) minutes or five (5) minutes if within one (1) mile of the state border; and (ii) Rechecks intervals based on the Player’s proximity to the border with an assumed travel velocity of seventy (70) miles per hour, and a maximum interval not exceeding twenty (20) minutes;

Does not rely solely upon IP addresses to determine location when a mobile or Internet connection is being used to place a wager; and 5. For locations in Tennessee suspected of Suspicious Wagering Activity or Unusual Wagering Activity, allows for the creation of a custom virtual boundary around a physical location to identify the history of Patrons attempting to access the Sports Gaming System at that location.

(b) A Sports Gaming Operator License Applicant must disclose in its Terms and Conditions that the Sports Gaming System utilizes a third-party Geolocation Service that gathers geolocation and other data in accordance with these Rules, and that the Geolocation Service Vendor may share information with the Council regarding the Bettor’s geographical location, access and use of the Applicant’s Sports Gaming System, device type, device operating system, and device identifier, including passed/failed transactions, and the IP address for use in accordance with the Sports Gaming Act and these Rules.

(8) Responsible Gaming Plan.

Each Sports Gaming Operator License Applicant shall propose a Responsible Gaming Plan as an element of its License Application. A Licensee shall maintain its plan for as long as the Licensee accepts Wagers in the State of Tennessee. A Licensee may propose amendments to its Responsible Gaming Plan, provided it submits the amendment for approval by the Council at least forty-five (45) days before the proposed effective date of any changes to the Responsible Gaming Plan.

The Responsible Gaming Plan shall include, at a minimum, the following:

(a) Plan goals, statement of policy and commitment, procedures, and deadlines for implementation;

(b) A process for individuals to add themselves to the Licensee-Specific Self-Exclusion List;

(c) A process for individuals to add themselves to the Statewide Self-Exclusion List, by directing individuals to the Council;

(d) A process for the Licensee to prevent individuals who have requested Voluntary Self- Exclusion from placing Wagers. For each individual who makes such a Voluntary Self- Exclusion request, Licensees shall provide the individual with additional responsible gaming resources;

(e) A method to share with the Council an individual’s request to be added to the Licensee- Specific Self-Exclusion List;

(f) A method for receiving information from the Council regarding restrictions from individuals added to the Statewide Self-Exclusion List;

(g) A program where Players have the option to set an Account Cool-Off;

(h) If a Player sets a Responsible Gaming Limit, the Licensee shall prevent the Player from exceeding that limit during the time period requested by the Player;

(i) A plan for making responsible gaming information available and legible on the Licensee’s website(s), mobile app(s), advertisements, or other platforms for Interactive Sports Gaming, including publication of a problem-gambling helpline telephone number that provides information about responsible gaming and services, and that has been approved by the Council pursuant to Rule 1350-01-.07(11);

(j) A plan for providing comprehensive responsible gaming training to employees who may interact with Players from the State of Tennessee, including annual or periodic refresher training. Training should equip the trainee to respond to circumstances in which Player account activity may indicate signs that are consistent with gambling addiction;

(k) Procedures to prevent underage gambling, including age-affirmation mechanisms that utilize, at a minimum, month, date, and year of birth that will apply before the Person can gain access to any Sports Gaming System where Players can engage in Interactive Sports Gaming. A Sports Gaming Operator may use information obtained from third parties to verify that a Person is authorized to open an account, place Wagers, and make deposits and withdrawals;

(l) A process to provide Players with information about their play. This includes history, money spent, games played, net wins/losses, limits history, and any other relevant information;

(m) A process to provide Players with updates during play about time and money spent and account balances in cash;

(n) A clear and conspicuous display on the Licensee’s website(s), mobile app(s), advertisements, or other platforms for Interactive Sports Gaming indicating that it is unlawful for a Person under twenty-one (21) years of age to engage in Interactive Sports Gaming in the State of Tennessee;

(o) Procedures to prohibit a Person who places Wagers with the Licensee from establishing more than one active Sports Gaming Account with the Licensee; and (p) Procedures to permit a Person that places Wagers with the Licensee to terminate their Sports Gaming Account at any time, for any reason, and without penalty.

(9) Final Approval of Initial Applications for Licensure and Registration (see Rule 1350-01-.12 for Renewals).

(a) If the Council determines that the applicable application requirements and considerations set forth in the Sports Gaming Act and these Rules have been met to its satisfaction, the Council shall issue a Sports Gaming Operator License or approve the Registration of a Vendor, as applicable.

(b) For each License application approved, the application fee shall be credited to the annual License fee, and the Licensee shall send the balance of the annual fee to the Council within ten (10) days of approval of a License.

(c) No Licensee shall be permitted to accept Wagers unless and until it has submitted both its Sports Gaming System Operational Assessment and Sports Gaming System Technology Integrity and Security Assessment, both of which must be completed by a qualified Independent Testing Laboratory that is registered as a Vendor.

(d) Each Licensee and Registrant has a continuing duty and obligation to Immediately Notify the Council of any material change in status or applicable information that, if known by the Council, could disqualify the Licensee or Registrant from holding the License or being approved for Registration.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-117, 4-49-119, 4-49-119(b), 4-49-120, 4-49-125, 4-49-126, and 4-49-131; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.07 MAINTENANCE OF LICENSE OR REGISTRATION

In order to maintain its License or Registration, a Licensee or Registrant is required to maintain certain requirements, conditions, and programs. Failure to maintain these requirements, conditions, and programs may result in the suspension or revocation of a License or Registration or imposition of a fine.

(1) Reserve Requirements - Licensees (a) Licensees shall obtain a Bond in the amount of at least five hundred thousand dollars ($500,000) in order to conduct sports wagering in the State of Tennessee. The Bond may be used to fund the reserve. The company issuing the Bond shall be financially rated A or better by a nationally recognized rating agency and duly licensed, admitted, and authorized to transact business in the State of Tennessee. Licensees shall provide the original Bond to the Council. The Bond shall be renewable annually and shall list the Council as obligee of the Bond. The Bond may not be cancelled without a minimum of thirty (30) days’ prior written notice to the Council. The form of the Bond to be executed will be made available on the Council’s website.

(b) Licensees also shall maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, a Bond, or a combination thereof, of not less than the amount necessary to ensure the ability to cover the outstanding liability related to the Sports Gaming Accounts.

The outstanding liability shall be the sum of the following amounts:

Amounts held by the Licensee for Sports Gaming Accounts;
Aggregate amounts accepted by the Licensee as Wagers on Sporting Events with outcomes that have not been determined yet; and 3. Amounts owed but unpaid by the Licensee on winning Wagers.

(c) Licensees must receive Council approval in order to remove, release, or withdraw funds necessary to meet the Licensee’s reserve requirement in subdivision (b) of this section for non-Patron purposes. For the avoidance of doubt, Licensees may remove, release, or withdraw funds that are held in the reserve account that are in excess of the Licensee’s reserve requirement in subdivision (b) of this section.

(d) Licensees shall calculate their reserve requirements each business day. In the event a Licensee determines that its reserve is not sufficient to cover the calculated requirement for two consecutive business days, the Licensee, within twenty-four (24) hours, must notify the Council of this occurrence and indicate the steps the Licensee has taken to remedy any deficiency. All reserve funds held in cash or cash equivalents must be held in a financial institution that is federally insured by the FDIC or NCUA and lawfully operating in Tennessee. For the avoidance of doubt, a Licensee shall be deemed to meet the reserve requirements in subparagraph (b) above if the Licensee adds sufficient funds to cover the calculated requirement prior to the end of the following business day.

(2) Insurance Requirements – Licensees.

(a) Licensees shall provide the Council with certificates of insurance prior to approval of the License and with each renewal application. The company issuing the insurance shall be financially rated A or better by a nationally recognized rating agency and duly licensed, admitted, and authorized to transact business in the State of Tennessee.

(b) Subject to paragraph (c) below, Licensees shall maintain the following types and amounts of insurance while they are an approved Licensee to conduct Interactive Sports Gaming activities in the State of Tennessee:

Licensees who anticipate having less than 100,000 Player accounts during the upcoming year of licensure shall maintain cyber liability insurance in the amount of five million dollars ($5,000,000).
Licensees who anticipate having more than 100,000 Player accounts during the upcoming year of licensure shall maintain cyber liability insurance in the amount of ten million dollars ($10,000,000).

(c) Licensees that are unable to obtain the coverage amounts specified in 1350-01-.07(2)(b) at commercially reasonable terms, in the sole discretion of the Council, must maintain coverage in the maximum amounts offered to the Licensee by the issuing insurance company. Such Licensees must provide a notarized statement or letter from their insurance agent or broker stating that (1) Licensee was unable to obtain required insurance coverage after diligent effort, including a list of issuing insurance companies where inquiry was made, (2) the maximum amounts offered to Licensee by the insurance companies where inquiry was made, and (3) the reason for the deficiency. Such Licensee shall provide the Council with a detailed plan of how it intends to compensate for the deficiency in insurance coverage, which must be approved by the Council prior to Licensure.

(3) Periodic Audits.

(a) Licensees.

Prior to Licensure and annually thereafter prior to renewal, Licensees shall submit to the Council an audit of the financial statements and condition of the Licensee’s Interactive Sports Gaming operations in the State of Tennessee prepared within the preceding twelve-month period by a Certified Public Accountant in accordance with generally accepted accounting principles and applicable state and federal law.

If a Licensee has audited financial statements prepared at the parent company level, the Licensee shall include with its audited consolidated financial statements a supplemental schedule (either audited or unaudited) of the Operator’s Interactive Sports Gaming operations in Tennessee or an attestation from the Operator’s Certified Public Accountant that the Licensee has implemented procedures to accurately report all financial data necessary to determine privilege taxes owed by the Applicant Interactive Sports Gaming operations in Tennessee.

Licensees shall establish and maintain books, records, and documents (including electronic storage media) in accordance with generally accepted accounting principles and practices that sufficiently and properly reflect all revenues and expenditures of funds associated with Interactive Sports Gaming.
Licensees shall retain all records, financial records, supporting documents, statistical records, and any other documents (including electronic storage media) pertinent to their Interactive Sports Gaming operations for a minimum period of five (5) years from their creation.
Books and records pertaining to Interactive Sports Gaming in the State of Tennessee shall be subject to inspection, review, and audit by the Council at any time within the sole discretion of the Council. Licensee shall cooperate in any such inspection, review, or audit.

(b) Registrants.

Prior to Registration and prior to renewal, Registrants shall submit financial statements of the Registrant’s financial condition prepared within the preceding twelve-month period in accordance with generally accepted accounting principles and applicable state and federal law. A Registrant Applicant may provide financial statements prepared at the parent company level.
Registrants shall establish and maintain books, records, and documents (including electronic storage media) in accordance with generally accepted accounting principles and practices that sufficiently and properly reflect all revenues and expenditures of funds associated with Interactive Sports Gaming.
Registrants shall retain all records, financial records, supporting documents, statistical records, and any other documents (including electronic storage media) pertinent to involvement with Interactive Sports Gaming for a minimum period of five (5) years from their creation.
Books and records pertaining to Interactive Sports Gaming in the State of Tennessee shall be subject to inspection, review, and audit by the Council at any time within the sole discretion of the Council. Registrant shall cooperate in any such inspection, review, or audit.

(4) Financial Reporting and Financial Data Requirements.

(a) The Sports Gaming System must have the ability to deliver all requested data either by report or data file to the Council while achieving compliance with standards of integrity, security, and control required by the Council.

(b) The Sports Gaming System must have the ability to generate reports or data necessary for the Licensee and the Council to determine and record the financial data necessary to determine the privilege tax calculation over a daily, weekly, and monthly period, in a manner determined by the Council.

(d) All required reports shall be generated by the Sports Gaming System, even if the period specified contains no data to be presented. The report generated shall indicate all required information and contain an indication of “No Activity” or similar message if no data appears for the period specified.

(e) The Council may periodically prescribe a set of standard reporting forms and instructions to be used by each Licensee for filing daily, weekly, monthly, and/or quarterly reports.

(5) Bank Account In order to ensure the security of funds due to the State of Tennessee for payment of the privilege tax imposed under the Sports Gaming Act, Licensees shall maintain a bank account with a financial institution that is federally insured by the FDIC or NCUA and lawfully operating in Tennessee. This bank account shall be separate from all other operating accounts of the Licensee and shall hold all amounts calculated by the Licensee to be owed for payment of the privilege tax until payment is made pursuant to paragraph (6) below.

(6) Payment of Privilege Tax (a) There is imposed upon the Gross Handle of a Licensee a privilege tax of one and eightyfive one hundredths percent (1.85%) of a Licensee’s Gross Handle, less allowable deductions.

(b) A Licensee shall pay the privilege tax each month based on its Gross Handle for the immediately preceding calendar month.

(d) A Licensee may deduct the following amounts from the prior month’s Gross Wagers prior to calculation of the privilege tax owed:

The amount of Federal Excise Tax paid by the Licensee for the prior month;
Cancelled Wagers:
Voided Wagers; and 4. Resettled Wagers that result in a negative adjustment. Resettled Wagers that result in a positive adjustment must be added to Gross Wagers.

(e) A Licensee may not deduct the following from its Gross Handle prior to calculation of the privilege tax owed:

Payouts to Bettors;
Promotional Wagers;
Promotional Payouts; or 4. Anything not specified in this Rule or that has not otherwise been expressly approved in writing by the Executive Director or his or her designee prior to the deduction.

(f) The privilege tax for the immediately preceding calendar month shall be transferred to the Licensee’s bank account required by Rule 1350-01-.07(5) by the fifth (5th) business day of each month. A Licensee shall contemporaneously, in a manner specified by the Council, submit a report showing Gross Handle, Gross Wagers, deductions taken in accordance with subparagraph (d) above, and the total amount of privilege tax owed by the Licensee.

(7) Prohibition on Wagers by and Payouts to Minors.

(a) A Licensee shall not permit Wagers to be placed by Minors. Each Licensee shall maintain a system through which it verifies that Wagers are not made by Minors in accordance with Rule 1350-03-.11. A Licensee shall prohibit any Minor from making deposits, collecting payouts, and collecting winnings from Interactive Sports Gaming.

(b) Licensee shall provide the Council information about its methodology for verifying the age of a Bettor. Licensee shall notify Council of any changes to its methodology, or if there is a change of any Vendor or provider that provides age verification services to the Licensee within ten (10) days of any such change.

(c) Licensee’s system to verify that Wagers are not made by Minors and prohibiting payouts to Minors shall be tested and evaluated as part of the Licensee’s Sports Gaming System Operational Assessment.

(8) Prohibited Participants.

(a) Licensees shall not permit Wagers to be placed by Prohibited Participants. A Licensee shall maintain a system through which it verifies that Wagers are not made by Prohibited Participants.

(b) Licensees shall provide the Council information about its methodology for determining whether or not a Player is ineligible due to his/her inclusion in one or more classes of Prohibited Participants as enumerated in the Sports Gaming Act. Licensee shall notify Council of any changes to its methodology pursuant to the change management provisions contained in Rule 1350-03-.02.

(c) Licensees shall prohibit any Person who is included in a class of individuals ineligible to place a Wager pursuant to the Sports Gaming Act from collecting payouts or winnings from Interactive Sports Gaming.

(d) Licensee’s system to verify that Wagers are not made by Prohibited Participants and prohibiting payouts to Prohibited Participants shall be tested and evaluated as part of the Licensee’s Sports Gaming System Operational Assessment.

(9) Integrity Monitoring.

(a) Licensees shall have controls in place to identify Unusual and Suspicious Wagering Activity and report such activity to the Council and to their Integrity Monitoring Provider according to the Integrity Monitoring System provisions set forth in the MICS contained in these Rules.

(b) Licensee’s Integrity Monitoring System procedures shall provide for the sharing of Unusual Wagering Activity and Suspicious Wagering Activity with the Council, either directly or through the Licensee’s Integrity Monitoring Provider.

(c) Licensees shall review reports of Unusual Wagering Activity and Suspicious Wagering Activity received from their Integrity Monitoring Provider and notify their Integrity Monitoring Provider whether they have experienced similar activity.

(d) If a Licensee finds that previously reported Unusual Wagering Activity rises to the level of Suspicious Wagering Activity or identifies Suspicious Wagering Activity, Licensee shall Immediately Notify the Council.

(e) Licensees reporting on Suspicious Wagering Activities shall be permitted to suspend or cancel Wagering on Events related to the report and must Immediately Notify the Council upon taking such action.

(f) Notwithstanding the other provisions of this section, all information and data received by the Council regarding Unusual or Suspicious Wagering Activity shall be considered confidential. Such data and information may not be revealed in whole or in part except upon the lawful order of a court of competent jurisdiction, or, with any law enforcement entities, regulatory agencies, governing authorities, integrity monitoring organizations or other organization necessary to facilitate integrity monitoring, or with accredited sports governing bodies as required by the Sports Gaming Act or Council.

(10) Participation in Investigations.

(a) Each Licensee and Registrant shall cooperate in good faith with investigations conducted by the Council, sports governing bodies, and law enforcement agencies.

(b) Licensees shall provide or facilitate provision of account-level betting information and data files relating to Persons placing Wagers and any other information necessary for investigations conducted by the Council or law enforcement.

(c) The Council shall investigate, and each Licensee or Registrant shall cooperate with such investigation, upon information and belief that a Licensee or Registrant has failed to comply with the requirements outlined in the Sports Gaming Act or these Rules.

(d) During normal business hours, the Council and its agents may enter the premises of any facility of a Licensee or Registrant that is utilized by the Licensee to operate and conduct Interactive Sports Gaming business in the State of Tennessee for the purpose of inspecting equipment, books, and records kept as required by the Sports Gaming Act or these Rules, to ensure that the Licensee is in compliance with the Sports Gaming Act or these Rules, or to make any other inspection as necessary to enforce the Sports Gaming Act or these Rules. Failure to admit the Council or its agents after presentation of credentials shall be grounds for disciplinary action.

(e) The Council and its agents, including its law enforcement representatives, shall be able to demand access and inspect business records of any Licensee or Registrant without the requirement to obtain a subpoena. Failure to provide access to the Council or its agents after presentation of credentials shall be grounds for disciplinary action.

(f) Each Licensee and Registrant shall maintain all records relating to the conduct of Interactive Sports Gaming in the State of Tennessee for a period of five (5) years.

(g) The Council may investigate any violation of the Sports Gaming Act, the Rules, or any conduct that affects the integrity of Interactive Sports Gaming in the State of Tennessee (h) Licensees and Registrants shall Immediately Report to the Council any information relating to:

Criminal or disciplinary proceedings or non-routine government or law enforcement investigations commenced against the Licensee or Registrant in connection with its operations in any jurisdiction;
Unusual or Suspicious Wagering Activity, including activities reported to the federal government pursuant to AML laws and regulations and Wagers placed to conceal or launder funds derived from illegal activity;
Any potential or actual breach of a sports governing body’s internal rules and codes of conduct pertaining to sports wagering that is known or reasonably should have been known to Licensee or Registrant;
Cheating, including wagering activities or patterns that may indicate a concern with the integrity of a Sporting Event;
Conduct that corrupts, is intended to corrupt, or unduly influences the betting outcome of a Sporting Event for purposes of financial gain, including match fixing; and 6. An agent or proxy placing a Wager on behalf of another Person, or the use of false identification.

(i) Licensees also must report information relating to conduct described in subparagraph (h), parts 2.–5., above, to the relevant sports governing body and provide Written Notice of its communications to the sports governing body to the Council. With respect to any information provided by a Licensee to a sports governing body, a sports governing body may only use such information for integrity purposes and shall maintain the confidentiality of such information, unless disclosure is required by the Tennessee Sports Gaming Act, Council, other law, court order, or unless the Licensee consents to disclosure.

(j) Licensees shall share with the Council, upon request by the Council, in real time and at the account level, information regarding a Bettor, the amount and type of each Wager, the time the Wager was placed, the location of the Wager, including the Internet protocol address if applicable, the outcome of the Wager, and records of abnormal, Unusual, or Suspicious Wagering Activity related to the Wager. Information shared under this subparagraph shall be submitted in the form and manner as requested by the Council.

(k) If a sports governing body has notified the Council in writing that real-time information sharing for Wagers placed on its Sporting Events is necessary and desirable, Licensees shall share the same information with the sports governing body or its designee with respect to Wagers on its Sporting Events. Such information may be provided in anonymized form and may be used by a sports governing body solely for integrity purposes.

(11) Manner in Which Interactive Sports Gaming May Be Advertised, Marketed, and Promoted.

This Rule is authorized by T.C.A. § 4-49-118 to effectuate the prohibitions of that statute and establish the manner in which a Licensee may advertise its business operations compliant with the Sports Gaming Act.

(a) Licensees shall provide electronic copies of all advertising, marketing, and promotional materials developed by the Licensee or by a Vendor on behalf of the Licensee to the Council within five (5) business days following their publication, distribution, or airing to the public, as applicable. Vendors who advertise, market, or offer promotions on behalf of more than one Licensee or without affiliation to any Licensee shall provide materials to the Council within five (5) business days following their publication, distribution, or airing to the public, as applicable. Licensees and Vendors may also submit advertising, marketing, and promotional materials to the Council for review in advance of publication, distribution, or airing to the public. If the Licensee or Vendor seeks advance review, the Licensee or Vendor shall submit such materials to the Council at least 48 hours in advance of publication, distribution, or airing to the public.

(b) Licensees shall not directly advertise or promote Interactive Sports Gaming to Minors.

(c) Advertising, marketing, and promotional materials published, distributed, or aired by or on behalf of a Licensee shall include a responsible gaming message, which includes, at a minimum, a Council-approved problem-gambling helpline number and an assistance and prevention message.

Licensees shall include the logo and gambling hotline number for the Tennessee REDLINE, a 24/7 addiction treatment and recovery hotline provided by the Tennessee Association of Alcohol, Drug and other Addiction Services (TAADAS), 1-800-GAMBLER, or another toll-free gambling hotline number as approved by the Council. Logos for the Tennessee REDLINE will be provided to the Licensee by the Council.
In areas where space limitations create an issue for use of a logo, copy can be used to communicate the phone number. Individual social media postings (e.g., tweets, Facebook posts) where space is severely limited are not required to include the information set forth in part 1. of subparagraph (c). Social media pages and direct messages sent via social media platforms must contain the information set forth in part 1. of subparagraph (c).
In determining whether to approve a Licensee’s usage of a toll-free number other than the Tennessee REDLINE or 1-800-GAMBLER, the Council shall consider the following factors:

(i) Whether the toll-free number provides callers with information about services available in the location of the caller;

(ii) Whether the toll-free number provides a direct connection with additional services needed by the caller or requires the caller to place a separate, additional call;

(iii) The hours of operation of the toll-free number;

(iv) Whether the toll-free number allows for text-based communication;

(v) Whether the toll-free number is specifically designed to address responsible gaming, or whether it also encompasses other services;

(vi) The promptness in answering and professionalism of the individuals providing service through the toll-free number; and (vii) Whether the toll-free number collects, organizes and makes data publicly available, or specifically available to Tennessee, regarding demographics and utilization rates of callers that may be used to research and develop Responsible Gaming protocols.

The Council shall post on its website a list of approved toll-free numbers that Licensees may use in their advertisements, which may be amended from time to time to add additional approved toll-free numbers. If the Council amends the list of approved toll-free numbers to remove a previously approved number, the Council will give Licensees thirty (30) days’ advance Written Notice so Licensees can remove that number from their advertisements.

(d) Licensees shall communicate the legal age to participate (21 years old and above) on any website, mobile app, and other mediums or forms of advertising, marketing, and promotions.

(e) Advertisements, marketing, or promotions shall comply with the Federal Trade Commission, Guides Concerning Use of Endorsements and Testimonials in Advertising, compiled in 16 CFR § 255.

(f) Advertisements, marketing, or promotions shall not contain images, symbols, celebrity/entertainer endorsements, and/or language designed to appeal specifically to those under 21 years old.

(g) Advertisements, marketing, and promotions shall not imply that Minors may engage in Interactive Sports Gaming, or feature anyone who is or appears to be below 21 years old, unless the individual is a participant in a Sporting Event upon which a wager may be placed;

(h) A Licensee must report the following information regarding compensation, whether monetary or otherwise, paid by a Licensee to an individual who is eligible to participate in Sporting Events upon which a Wager can be placed:

The name of the individual being compensated;
The amount and form of compensation; and 3. A general description of the service to be performed by the individual.

Upon request of the Council, the Licensee may be required to provide copies of agreements between the Licensee and the individual receiving the compensation.

(i) Licensees shall not advertise in media outlets that appeal primarily to those under the age of 21;

(j) Advertisements, marketing, or promotions shall not be placed before any audience where the majority of the participants is presumed to be below the age of 21 or that targets potentially vulnerable Persons, including Self-Excluded Individuals.

(k) Licensees shall not target advertising and marketing to Self-Excluded Individuals through direct mail, direct messaging, text, or e-mail.

(l) All direct advertising, marketing, or promotions via e-mail or text message must allow the recipient an option to unsubscribe;

(m) Licensees shall provide the requirements of this paragraph (12) to advertising, marketing, and promotions personnel, contractors, agents, and agencies retained by Licensees or their agents to ensure compliance herewith; and (n) Failure to adhere to any of the above may be grounds for disciplinary action.

(12) Maintenance of Self-Exclusion Lists.

(a) Licensees shall offer a Licensee-Specific Self-Exclusion List. Licensees may, at the request of a Bettor, offer individuals the option of placing themselves on the Statewide Self-Exclusion List, by directing the individuals to the Council. Licensees shall electronically provide a list of individuals who have requested placement on the Licensee-Specific Self-Exclusion List to the Council no less than once per week (even if the list contains zero individuals) in a format specified by the Executive Director or designee.

(b) Licensees shall submit a monthly report to the Council that includes both the number of individuals who requested Voluntary Self-Exclusion through the Licensee-Specific Self- Exclusion List and the number of individuals processed from the Statewide Self- Exclusion List.

(c) Any individual may request Voluntary Self-Exclusion, and that Self-Excluded Individual during any period of Voluntary Self-Exclusion may not collect any winnings or recover any losses resulting from any Interactive Sports Gaming, except that a Player’s Sports Gaming Account balance on settled Wagers placed prior to the Voluntary Self-Exclusion shall be returned to the Self-Excluded Individual. Individuals who believe they were inadvertently placed on a Licensee-Specific Self-Exclusion List or the Statewide Self- Exclusion List may request removal from a Licensee-Specific Self-Exclusion List or the Statewide Self-Exclusion List by completing an application for removal. The individual may request the application for removal from the Council. Submission of the application for removal does not guarantee removal from a Licensee-Specific Self-Exclusion List or the Statewide Self-Exclusion List.

(d) Licensees shall provide sufficient notice to the Player regarding any additional effects of inclusion on the Licensee-Specific Self-Exclusion List and/or the Statewide Self- Exclusion List. If applicable, such notice shall include language advising the Player that, once included on the Licensee-Specific Self-Exclusion List and/or the Statewide Self- Exclusion List, the Licensee may choose to exclude the Player permanently, regardless of the exclusion period requested, and advising whether the Player is excluded from other platforms or properties of the Licensee.

(13) Reporting Requirements.

Licensees and Registrants shall report, within three (3) business days of the change, any information relating to:

(a) The name, home address, and date of birth of any new Key Personnel;

(b) Potential purchase or sale, transfer, assignment, gift or donation, or other disposal or acquisition of 5% or more ownership of a Licensee or Vendor;

(c) The resignation, termination, removal, or departure of any Key Personnel of a Licensee or Vendor; and (d) All other information or circumstances which are deemed to be reportable under these Rules.

(14) House Rules.

(a) Licensees shall adopt comprehensive House Rules which shall be submitted to the Council for approval with the initial application for a License. Amendments to the House Rules must be submitted to the Council for approval no less than ten (10) business days prior to their proposed implementation.

(b) At a minimum, the House Rules shall address the following items:

A method for the calculation and payment of winning Wagers;
The effect of schedule changes;
The method of notifying Players of odds or proposition changes;
Acceptance of Wagers at terms other than those posted;
The method of contacting the Licensee for questions and complaints;
A description of Prohibited Participants and others who may be restricted from placing a Wager;
The method(s) of funding a Wager;
A description of all types of Wagers that may be accepted, including any minimum and maximum Wagers;
The method by which the Sports Gaming Operator will identify and cancel Wagers, including defining Obvious Error pursuant to these Rules;
A provision prohibiting the structuring of Bets to avoid federal currency transactional reporting thresholds; and 11. Notice that Wagers are subject to AML standards, including triggers and requirements for filing of Currency Transaction Reports and Suspicious Activity Reports;
Notice that Wagers are enforceable contracts between the Licensee and the Bettor under T.C.A. § 4-49-113 and, as such, may be limited by the Licensee in terms of Wagers offered, or amounts accepted as Wagers, to any Bettor at any time, as long as the Licensee shares those limits with the Bettor in advance of the Wager being placed.

(d) Copies of the House Rules shall be made readily available, upon request, to Players.

(15) Internal Control Standards.

Licensees shall develop Internal Control Standards according to the requirements and specifications in Rule 1350-03-.02(2). Licensees shall submit material changes to Internal Control Standards no less than ten (10) business days prior to their proposed implementation.

Licensees shall submit a redline when seeking review and approval of material changes to Internal Control Standards and new certifications consistent with Rule 1350-01-.05(3)(d).

Licensees shall submit a clean copy of revised Internal Control Standards after approval.

(16) Geolocation System.

(a) Licensee shall keep its geolocation system up to date, including integrating the latest versions in real time that can detect the use of remote desktop software, rootkits, virtualization, or any other programs identified by the Council having the ability to circumvent geolocation measures.

(b) The integrity of the geolocation system shall be reviewed regularly, but no less than every one hundred eighty (180) days, by the Licensee to ensure it detects and mitigates existing and emerging location fraud risks, and that is has been updated to incorporate all available patches and updates recommended by the Licensee’s Geolocation Service Vendor.

(c) Licensee must either (1) provide the Council evidence that the geolocation system is updated to the latest version every 180 days, or (2) provide the Council with access to its geolocation system (or a dashboard or application utilized by the geolocation system Vendor) so that compliance can be independently verified by the Council.

(17) Terms and Conditions.

Licensees shall adopt Terms and Conditions which shall be submitted to the Council for approval with initial applications for Licenses. Licensees shall submit material changes to Terms and Conditions to the Council for approval not less than ten (10) business days prior to their proposed implementation. Licensees shall submit a redline when seeking review and approval of material changes to Terms and Conditions, and Licensees shall submit a clean copy of revised Terms and Conditions after approval.

History

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4-49-104, 4-49-106, 4-49-109, 4-49-109(a), 4-49-110, 4-49-112, 4-49-115, 4-49-115(f), 4-49-117, 4-49-118, 4-49-119, 4-49-119(b), 4-49-120, 4-49-122, 4-49-123, 4-49- 124, 4-49-125, 4-49-127, and 4-49-133; and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.08 SPORTS GAMING ACCOUNTS

(1) Interactive Sports Gaming shall only be engaged in by Players who have established a Sports Gaming Account with an approved Licensee.

(2) The information necessary to establish a Sports Gaming Account shall be recorded and maintained for a period of five (5) years by the Licensee.

(3) Prior to the establishment of a Player’s Sports Gaming Account, a Licensee shall, at a minimum, verify a Player’s identity using the KYC methods set forth in subparagraphs (a) and (b), below. If the KYC methods set forth in subparagraphs (a) and (b), below, are unsuccessful in verifying the Player’s identity, the Licensee may use the manual KYC process set forth in subparagraph (c), below.

(a) A Licensee shall, at a minimum, collect the following information about a Player, and store this information within the Sports Gaming System:

The Player’s legal first name;
The Player’s legal last name, which the Licensee shall verify as an exact match with its KYC Vendor’s data sources;
The Player’s date of birth (including day, month, and year), which the Licensee shall verify as an exact match with its KYC Vendor’s data sources;
The Player’s social security number (“SSN”) or only the last four digits of the SSN if sufficient, or the equivalent for a foreign Player who places a Wager within Tennessee (such as a passport or taxpayer identification number). The Licensee shall verify the number provided as an exact match with its KYC Vendor’s data sources;
The Player’s residential address (other than a post office box);
The Player’s phone number(s); and 7. The Player’s e-mail address.

(b) A Licensee shall ensure that the individual attempting to establish a Sports Gaming Account is the individual that they hold themselves out to be through at least one of the following authentication methods;

Requiring three knowledge-based questions related to the individual’s personal

history or identity, formulated from public and proprietary data sources, to be successfully answered;

Verification that the Player’s phone number is associated with the Player, which shall be verified through a third-party or governmental data source. The verification shall fail if the phone number or device has been found to be associated with prior fraudulent identity;
Verification of a valid government-issued ID;
Verification of biometric identification with a valid government-issued ID; or 5. Any other method approved by the Council.

(c) Manual KYC verification: If the KYC methods set forth in subparagraphs (a) and (b), above, are unsuccessful, the Licensee may use a manual KYC process that includes a review of the Player’s submitted documentation to authenticate all KYC data as described in subparagraph (a), above.

(4) Prior to the establishment of a Player’s Sports Gaming Account, the Licensee shall:

(a) Verify that the Player is not a Prohibited Participant using commercially reasonable means or through approved KYC procedures;

(b) Provide the Player a definition of Prohibited Participant; and (c) Record the Player’s acknowledgment that the Player is not a Prohibited Participant.

(5) Licensees shall record the Player’s acceptance of the Terms and Conditions and privacy policy and acknowledgment that the information provided is accurate and the Player is prohibited from allowing any other Person to access or use the Player’s Sports Gaming Account.

(6) If a Licensee determines that the information provided by a Player to make a deposit or process a withdrawal is inaccurate or incapable of verification; fails to verify the identity of the Player; or the Player violates the policies and procedures of the Licensee, the Licensee shall, within ten (10) calendar days, require the submission of additional information from the Player that can be used to remedy any violation or failure to verify the identity of the Player or funds deposit or withdrawal information of the Player. If such information is not provided or does not result in verification of the Player’s identity or deposit or withdrawal information, the Licensee shall:

(a) Immediately suspend the Player’s Sports Gaming Account and not allow the Player to place Wagers;

(b) Retain any winnings attributable to the Player;

(c) Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and (d) Deactivate the account.

(7) Licensees shall notify the Player of the establishment of the Sports Gaming Account by e-mail, text message, or first-class mail. Once a Sports Gaming Account is created, a secure personal identification (e.g., a unique username) for the Player authorized to use the Sports Gaming Account shall be established that is reasonably designed to prevent the unauthorized access to, or use of, the Sports Gaming Account by any individual other than the Player for whom the Sports Gaming Account is established.

(8) A Player shall have only one (1) Sports Gaming Account for each Licensee.

(9) A Sports Gaming Account may be funded using:

(a) Debit cards;

(b) Electronic bank transfers, including such transfers through third parties;

(d) Winnings or payouts; and (e) Any other method approved by the Council that is initiated with cash. Licensees must ensure that any method identified above is able to segregate and prevent the use of funding originating from credit cards. Licensees are permitted to utilize a global or single wallet functionality, but credit card funds in any global or single wallet must be segregated from usage in the state of Tennessee.

(10) Funds may be withdrawn from a Player’s Sports Gaming Account as follows:

(a) Wagers;

(b) Cashier’s check, business check, wire transfer, or money order by the Licensee made payable to the Player and issued directly or delivered to the Player’s address on file with the Licensee;

(c) Credits to the Player’s debit card, so long as that debit card has been registered in the Licensee’s system for at least forty-eight (48) hours;

(d) Electronic bank transfers, including transfers through third parties;

(e) Online and mobile payment systems that support online money transfers; or (f) Any other method approved by the Council.

(11) A Player’s request for withdrawal of Player funds shall be completed within five (5) business days, unless another time is explicitly stated in the Licensee’s House Rules or Terms and Conditions, there is a pending unresolved dispute between Player and Licensee, or there is an indication of Unusual Wagering Activity or Suspicious Wagering Activity that is being actively investigated by the Licensee, the Council, a sports governing body, or a law enforcement agency. A Licensee may withhold funds from withdrawal until all funding transactions with the Player have cleared or the chargeback period ends.

(12) All adjustments to a Player’s Sports Gaming Account for individual amounts of five hundred dollars ($500.00) or less shall be periodically reviewed by Key Personnel or his or her designee.

All other adjustments shall be authorized by Key Personnel or his or her designee prior to being entered. Procedures for adjustments in accordance with this rule shall be included in the Licensee’s Internal Control Standards.

(13) Licensees shall not allow the transfer of funds or credits between Players.

(14) Each financial transaction with respect to a Sports Gaming Account between a Player and Licensee (including, but not limited to, a Cancelled Wager or a Voided Wager) must be confirmed by e-mail, telephone, text message, or other means agreed upon by the Player and Licensee. Licensees shall provide an account statement with details to a Player on demand, which shall include account activity for at least the six (6) months preceding the twenty-four (24) hours prior to the request. In addition, Licensees shall, upon request, be capable of providing to a Player a summary statement of all Player activity during the past twelve (12) months.

(15) Licensees shall notify a Sports Gaming Account holder via e-mail, mail or other method approved by the Council, whenever the Sports Gaming Account holder’s Sports Gaming Account has been closed or placed in a suspended mode. Such notification shall include the restrictions placed on the Sports Gaming Account and any further course of action needed to remove the restriction.

(16) Licensees shall suspend Wagers from being made and re-verify a Player’s identification within three (3) business days, unless the Executive Director approves a longer period of time, upon reasonable suspicion that the Player’s identification or Sports Gaming Account has been compromised. Licensees shall permit a Player to withdraw funds within five (5) business days after their identification has been re-verified.

(17) Licensees shall offer a readily accessible method for a Player to close his or her Sports Gaming Account. Any balance remaining in a Player’s Sports Gaming Account closed by a Player shall be refunded within five (5) business days of notice from the Player to the Licensee, or pursuant to another time explicitly stated in the Licensee’s House Rules or Terms and Conditions.

(18) Sports Gaming Systems shall employ a mechanism that can detect and prevent any Playerinitiated Interactive Sports Gaming or withdrawal activity that would result in a negative balance of a Sports Gaming Account.

(19) A Player’s Sports Gaming Account shall be disabled after three (3) failed log-in attempts and require Multi-Factor Authentication to recover a disabled Sports Gaming Account or reset a password.

(20) A Licensee shall employ a mechanism that places a Sports Gaming Account in a suspended mode in the following situations:

(a) When requested by the Player to implement a Voluntary Self-Exclusion or Account Cool- Off in accordance with the Licensee’s Responsible Gaming Plan as approved by the Council;

(b) When required by the Council;

(c) Upon the Licensee’s determination or notice from the Council that a Player is a Prohibited Participant; or (d) When the Licensee knows or has reason to know of any of the following:

Illegal activity;
A negative account balance;
Five (5) failed deposit attempts within a 30-minute period; or 4. A violation of the Terms and Conditions has taken place on a Player’s Sports Gaming Account.

(21) When a Sports Wagering Account is in a suspended mode, the Player shall be prevented from:

(a) Wagering;

(b) Depositing funds, unless the reason for the deposit is to clear a negative balance that resulted in suspended mode;

(d) Making changes to the Sports Gaming Account; and (e) Closing the Sports Gaming Account.

(22) A suspended Sports Gaming Account may be restored as follows:

(a) Upon expiration of a suspension initiated by the Player;

(b) Upon permission of the Council;

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115(d), 4-49-115(f), 4-49-118, 4-49-119(b), 4-49-125, and 4-49-126 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.09 PARLAY AND PROPOSITION BETS

(1) Parlay Bets.

(a) Proposition plays and future Bets can be parlayed.

(b) Event outcomes that are directly connected can be parlayed, e.g., moneyline and the point spread of the same Sporting Event.

(2) Proposition Bets.

(a) Wagers on an individual’s actions, events, statistics, occurrences, or non-occurrences to be determined during a collegiate Sporting Event are prohibited.

(b) Pre-Game Proposition Bets on the performance or non-performance of a collegiate team are allowed.

(d) Proposition Bets can be placed on Events related to Sporting Events upon approval by the Council.

(e) Proposition Bets cannot be placed on any type of possible injury.

(f) Various forms of Proposition Bets are allowed if approved by the Council and addressed in the Licensee’s House Rules.

History

Authority: T.C.A. §§ 4-49-106, 4-49-114, 4-49-115(f).
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01-.10 but was renumbered

Tenn. Comp. R. & Regs. 1350-01-.10 GLOBAL RISK MANAGEMENT

A Licensee may utilize Global Risk Management as provided in this Rule upon approval by the Council.

Prior to utilizing Global Risk Management for any reason, a Licensee shall submit to the Council for approval a copy of all written agreements related to Global Risk Management. The Council may reject a Licensee’s proposed use of Global Risk Management services for any reason deemed necessary to protect the integrity of sports wagering in this State.

The following are permissible services which a Sports Gaming Operator or Vendor licensed by a regulatory

authority in another jurisdiction may perform in the State of Tennessee, upon approval of the Council:

(1) Setting, modifying, or providing risk management advice as it relates to betting odds, point spreads, and lines;

(2) Deciding when a Sporting Event should be removed as an option from the list of Interactive Sports Gaming options authorized by the Council and offered by the Licensee;

(3) Determining when the Interactive Sports Gaming action by Players on a particular Sporting Event should be rejected;

(4) Determining when it would be desirable to place Layoff Wagers with another licensed Sports Gaming Operator in the State of Tennessee; or (5) Using their special expertise to manage the risks associated with Interactive Sports Gaming in the State of Tennessee.

History

Authority: T.C.A. § 4-49-110 and 4-49-115.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01-.11 but was renumbered 1350-01- .10 with the deletion of original rule 1350-01-.09 filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Rule was previously numbered 1350-01-.11 but was renumbered

Tenn. Comp. R. & Regs. 1350-01-.11 EXECUTIVE DIRECTOR FOR THE SPORTS WAGERING COUNCIL

The Council will hire an Executive Director for the purposes set forth in T.C.A. § 4-49-105(a), and the Executive Director shall have duties and responsibilities, including, but not limited to the following, all with the purpose of assisting and carrying out the Council’s responsibilities under the Sports Gaming Act.

(1) To administer, manage, and direct the business affairs of the agency, subject to the control and direction of the Council.

(2) To serve as the Council’s representative and agent in all matters before the General Assembly, and within all branches within state, federal and local governments.

(3) To manage all employment matters related to the Council and the agency, including the creation of job classifications, duties, and positions for staff to assist with carrying out the duties of the Council and the Executive Director. The Executive Director shall make offers of employment and set salaries, including any periodic merit increases, (excluding any salary or merit increase related to the Executive Director’s compensation, which shall be set by the Council); devise, implement, and enforce employment policies consistent with state and federal law; terminate employment; and execute any other necessary disciplinary action as to staff members.

(4) To advise the Council of best practices with respect to Interactive Sports Gaming and any modifications to the procedures or standards of the Council’s Rules as may be identified through the operations of Interactive Sports Gaming.

(5) To provide administrative and technical assistance to the Council and administer all programs and functions that have been required of the Council or as set forth in the Rules of the Council, including this Chapter 1350-01, Chapter 1350-02, and Chapter 1350-03.

(6) To send and receive notices required to be made to the Council or communications made on behalf of the Council, which may be sent to or issued from the Executive Director as agent of the Council;

(7) To execute such categories of individual contracts and agreements on behalf of the Council as the Council shall authorize, in accordance with Tennessee law.

(8) To supervise the expenditure of funds and be responsible for complying with all applicable state and federal law in the receipt and disbursement of funds. The Executive Director shall have

authority to execute any necessary approvals required by the Department of Finance and Administration on behalf of the Council.

(9) To approve the voiding of Wagers on behalf of the Council.

(10) To approve change management orders or amendments to Internal Control Standards on behalf of the Council.

(11) To approve or deny the offering of Wagers on Sporting Events, the types of Wagers offered, House Rules, and Terms and Conditions submitted by Licensees on behalf of the Council.

(12) To approve the methodology of receipt and format of data and information from Licensees and Vendors, on behalf of the Council.

(13) To issue a determination of completeness after review of a License or Vendor application, on behalf of the Council.

(14) To review advertisements and promotional materials submitted by Licensees, on behalf of the Council.

(15) To investigate suspected and reported violations of the Sports Gaming Act and the Council’s Rules, and to issue subpoenas to compel the attendance of witnesses and the production of relevant books, accounts, records, and documents on behalf of the Council. The Executive Director shall recommend appropriate fines or civil penalties to the Council, as appropriate.

The Executive Director may refer suspected and reported violations of the Sports Gaming Act, or other state or federal laws, to law enforcement, as appropriate.

(16) To carry out any delegation of authority, as may be received in writing from the Chairman of the Council, from time to time, as exigent circumstances may require.

(17) To carry out any other duties as prescribed or instructed by the Council.

(18) To address player complaints or to assign the investigation of player complaints to a staff designee.

(19) To determine whether a person qualifies as an Institutional Investor.

(20) To engage in settlement discussions on behalf of the Council and to enter into agreed orders imposing administrative fines pursuant to Rule 1350-02-.11.

(21) To issue letters of warning on behalf of the Council.

(22) To assess a fine or civil penalty in accordance with the Sports Gaming Act and these Rules, upon written delegation of authority from the Chairman of the Council.

(23) To approve any other factors used to verify a Player’s identity for Multi-Factor Authentication under Rule 1350-01-.02(42).

(24) To approve a longer period of time to re-verify a Player’s identification under Rule 1350-01- .08(16).

(25) To approve a Licensee’s password expiration policy under Rule 1350-03-.03(7)(d).

(26) Notwithstanding Rule 1350-01-.06(3) or Rule 1350-01-.12(4)(c), to approve, condition, or deny renewal of Vendor registrations.

(27) To approve a change of control pursuant to Rule 1350-01-.13.

(28) To remove a previously imposed condition of Licensure or Registration, upon a showing that the Operator or Vendor has fulfilled or resolved the condition.

History

Authority: T.C.A. §§ 4-49-105, 4-49-106, 4-49-115, 4-49-115(f), and 4-49-129.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01- .12 but was renumbered 1350-01-.11 with the deletion of original rule 1350-01-.09 filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Rule was previously numbered

Tenn. Comp. R. & Regs. 1350-01-.12 RENEWAL OF LICENSE OR REGISTRATION

(1) A Sports Gaming Operator License shall be subject to renewal each year, no later than the anniversary date of the final approval of the License by the Council. Each renewal term of the License shall be for one (1) year. A Sports Gaming Vendor Registration shall be subject to renewal every three (3) years, no later than the third anniversary date of the final approval of the registration by the Council. Each renewal term of the Registrant shall be for three (3) years.

Notwithstanding the foregoing, if the Licensee or Registrant has submitted a timely and complete application and the Council is unable to meet prior to the expiration of the License or Registration term of the Licensee or Registrant, the Licensee or Registrant will be deemed to be in lawful operation until such time as the Council can meet.

(2) At least ninety (90) days prior to the expiration of the License or Registration term, each Licensee and Registrant shall submit renewal application forms to the Council. A current version of the License and Registration application renewal forms will be made available on the Council’s website.

(a) A Licensee shall pay a nonrefundable renewal application fee of fifty thousand dollars ($50,000) at the time it submits a renewal application. Within ten (10) business days of the Council’s approval of a Licensee’s renewal, the Licensee shall pay in full its total License fee as set forth in T.C.A. § 4-49-117(b) and Rule 1350-01-.04(1)(b), to which the renewal application fee of fifty thousand dollars ($50,000) shall be credited.

(b) A Registrant shall pay a renewal fee as set forth in Rule 1350-01-.04(2)(g).

(3) Documents and Information Required. At least ninety (90) days prior to the expiration of the License or Registration term, each Licensee or Registrant shall submit, at a minimum, the following documents and information:

(a) Documents and information demonstrating any change to the documents and information that were previously submitted to the Council as part of the initial application, using forms provided by the Council and made available on its website.

(b) Financial Statements. Each Licensee and Registrant shall submit to the Council its most recent annual financial statements prepared in accordance with Rules 1350-01- .07(3)(a)1. and (b)1.

(d) Responsible Gaming Plan Annual Report. A Licensee shall submit an annual report of its Responsible Gaming Plan activities, using a form provided by the Council on its website. In addition to that form, the Council may request additional information regarding a Licensee’s Responsible Gaming Plan activities throughout the licensure year.

(e) Sports Gaming System Operational Assessment. A Licensee shall submit its annual Sports Gaming System Operational Assessment.

(f) Sports Gaming System Technology Integrity and Security Assessment. A Licensee shall submit its annual Sports Gaming System Technology Integrity and Security Assessment.

(g) Terms and Conditions. A Licensee shall submit the most recent version of its Terms and Conditions.

(h) House Rules. A Licensee shall submit the most recent version of its House Rules.

(i) Internal Control Standards. A Licensee shall submit the most recent version of its Internal Control Standards, including:

A certification by the Licensee’s chief executive officer, chief compliance officer, or general counsel that the submitted Internal Control Standards conform to the requirements of Chapter 1350-03 of these Rules; and 2. A certification by the Licensee’s chief financial officer that the submitted Internal Control Standards:

(i) Establish a consistent overall system of internal controls;

(j) Internal Audit. A Licensee shall submit an attestation that the Licensee performed the prior year’s internal audit function in accordance with Rule 1350-03-.04(2)(c) and the Licensee’s audit plan for the upcoming year in accordance with Rule 1350-03-.04(2)(c).

(k) The Council may request any additional documents or information that are required by

Rule 1350-01-.05 to determine whether renewal should be granted.

(4) Approval of Renewal License or Registration.

(a) In determining whether to approve or deny an application for renewal of a License or Registration the Council may consider the following factors:

Whether the Applicant has demonstrated that it is conducting an Interactive Sports Gaming operation or serving as a Vendor in a capacity that has had a positive impact through increased revenues to the State of Tennessee;
Whether the Licensee possesses adequate funds or has secured adequate financing to maintain an Interactive Sports Gaming operation;
Whether the Licensee has the financial stability, integrity, and responsibility to continue to conduct Interactive Sports Gaming;
Whether the Licensee has proposed adequate measures for the security of any Sports Gaming System, server, or components thereof, and has demonstrated the adequacy of its security measures through its Sports Gaming System Technology Integrity and Security Assessment;
Whether the Licensee has demonstrated that its Interactive Sports Gaming operation is being conducted in accordance with the Sports Gaming Act and all other applicable local, state, and federal laws, and has satisfied the requirements set forth in these Rules;
Whether, since the time of the initial Licensure or Registration, the Applicant or its Key Personnel have been:

(i) Convicted of a disqualifying offense, as established by the Sports Gaming Act;

(ii) Arrested, charged, indicted, or have received a target letter from the U.S.

Department of Justice in connection with any investigation of offshore sports gaming activities that serviced the United States;

(iii) Arrested, charged, with, convicted of, pleaded guilty to, or forfeited bail concerning any criminal offense under the laws of any jurisdiction, other than for a minor traffic offense; or (iv) Indicted of any felony, gambling-related offense, or any other offense(s) that the Council finds will threaten the integrity of sports wagering in Tennessee and the public interest;

The past and present compliance of the Applicant, its affiliates, or affiliated companies relating to gaming operations or activities in any other jurisdiction;
Whether the Applicant has knowingly made a false statement of a material fact in any application or other communication to the Council, or failed to disclose to the Council a violation of the Sports Gaming Act or any of these Rules;
Whether, since the initial time of Licensure or Registration, the Applicant has had a license to operate any gaming or sports wagering activity suspended or revoked, or been denied from operating any gaming or sports wagering activity by any governmental authority responsible for the regulation of gaming activities in any jurisdiction;
Whether the Licensee has timely remitted any privilege tax due the State of Tennessee, or whether the Licensee or Registrant has timely paid any fine assessed by the Council, or timely remitted the balance of any application, license, registration, privilege tax, or other fees when due to the Council;
Whether the Applicant has filed, or had filed against it, a proceeding for bankruptcy, liquidation, or insolvency or has ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt;
Whether the Applicant has been served with a complaint, lien, or other notice filed with any public body regarding a payment of any tax or obligation required under any law in any jurisdiction, where the Applicant has been in breach for one or more years;
Whether the Applicant is or has been a defendant in litigation involving its business practices that would call into question its suitability to be licensed or registered;
Whether the Licensee has submitted a report on its Responsible Gaming Plan that meets the Council’s requirements;
Whether the Licensee has demonstrated that it has met the reserve requirements, including obtaining the required Bond set forth in these Rules;
Whether the Licensee has met the insurance requirements set forth in these Rules;
Whether the Licensee has submitted audited financial statements and any supplemental schedules or attestations in accordance with these Rules;
Whether the Licensee has submitted a Sports Gaming System Operational Assessment by an Independent Testing Laboratory and a Sports Gaming System Technology Integrity and Security Assessment by an Independent Testing Laboratory in accordance with these Rules;
Whether the Licensee has established the bank account required by Rule 1350- 01-.07(5) for the payment of privilege tax;
Whether the Licensee has submitted House Rules, Terms and Conditions, and Internal Control Standards in accordance with these Rules;
Whether the Licensee has utilized Internal Control Standards in accordance with

Chapter 1350-03 of these Rules;

Whether renewing a License or Registration would undermine the public’s confidence in the Interactive Sports Gaming industry in the State of Tennessee;
Whether the Licensee is utilizing the services of an Integrity Monitoring Provider;
Whether the Applicant has complied with the provisions of the Sports Gaming Act, the TEL Rules and these Rules, as applicable to the period of time it has been in operation.

(b) Notwithstanding subparagraph (a), a Licensee or Registrant seeking renewal of the License or Registration, who has submitted all information and documents that are required by these Rules and the forms provided by the Council, may submit documentation demonstrating that one or more of the following items is not available due to circumstances that are, in the sole judgment of the Council, largely outside of the Licensee or Registrant’s control and, despite the Licensee or Registrant’s efforts, cannot be obtained prior to the date of renewal: Audited Financial Statements, Federal Income Tax Return, Sports Gaming System Operational Assessment, or Sports Gaming System Technology Integrity and Security Assessment. Upon such a showing, the Council may approve a Renewal License or Registration and allow a Licensee or Registrant to continue operations on the condition that the outstanding external documents will be submitted to the Council within ninety (90) days of the date of approval. If, after the expiration of the ninety (90) day period, the Licensee or Registrant has not submitted all outstanding third-party documents, the Licensee or Registrant’s License or Registration will be suspended or revoked pursuant to Rule 1350-01-.14.

(c) In all cases, the Council shall have sole authority to approve, condition, or deny an application for a License or Registration, or renewal thereof.

History

Authority: T.C.A. §§ 4-49-106, 4-49-109, 4-49-110, 4-49-115, 4-49-115(f), 4-49-117, 4-49-119(b), and 4- 49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01-.13 but was renumbered 1350-01- .12 with the deletion of original rule 1350-01-.09 filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Rule was previously numbered 1350-01-.13 but was renumbered 1350-01-.12 with the deletion of original rule 1350-01-.09 filed September 15, 2023; effective December 14, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-01-.13 CHANGE OF CONTROL

(1) A License or Registration is not transferrable except as set forth in Rule 1350-01-.13(4) below.

(2) A Licensee or Registrant shall give Immediate Notice to the Council of any proposed change of control upon entering into an oral or written agreement regarding the proposed change of control. A change of control of a Licensee or Registrant occurs when a Licensee or Registrant:

(a) Sells, transfers, assigns, gifts or donates, or otherwise disposes of more than fifty percent (50%) of its ownership interests;

(b) Sells more than fifty percent (50%) of the voting stock of a corporation that controls the Licensee, or Registrant; or (c) Sells, transfers, assigns, gifts or donates, or otherwise disposes of all or substantially all of the Licensee’s, or Registrant’s assets, other than those bought and sold in the ordinary course of business;

(3) If the entity assuming control intends to operate a Sports Gaming Operation or serve as a Vendor in Tennessee, it must submit a License or Registration application to the Council within thirty (30) days of entering into any agreement to effectuate the change of control, unless the provisions of Rule 1350-01-.13(4) apply. If the new entity is applying for a License, it must submit the $50,000 application fee to the Council contemporaneously with its application.

(a) Upon receipt of the License or Registration application and application fee from the new entity, the Council may approve the continuation of the original License or Registration until such time as the new entity’s application for a License or Registration is approved or denied by the Council. Immediately upon approval or denial of the new entity’s License or Registration, the original entity’s License or Registration will become void.

(b) A new entity who receives a License under this Rule 1350-01-.13(3) must pay the License fee of $750,000 (less the $50,000 application fee) within ten (10) days of approval of the License.

(c) The new entity’s License anniversary date for renewal purposes is one year from the date that the Council approves the new License. The new entity’s Registration anniversary date for renewal purposes is three years from the date that the Council approves the new Registration.

(d) A new entity who receives a Registration under this Rule 1350-01-.13(3) must pay the Registration fee, in accordance with Rule 1350-01-.04(2)(g), within ten (10) days of approval of the Registration.

(4) The Council may approve the transfer of a License or Registration involving the sale, transfer, assignment, gift, or donation of an interest in all or substantially all of a Licensee or Registrant’s assets, to an individual, group of individuals, or entity which has previously been determined by the Council to have met the qualifications of a Licensee or Registrant during the preceding year and that is currently Licensed or Registered and in Good Standing. In the event that the Council approves a transfer of a License or Registration in accordance with this Rule, the following provisions will apply:

(a) The Licensee or Registrant who will hold the License or Registration after the transfer must complete a Change of Control Form, which will be provided on the Council’s website, within thirty (30) days of entering into any agreement regarding the proposed change of control. The Council may seek any information or documents regarding the transaction that it deems necessary.

(b) The transferred License or Registration shall be valid for the period of time remaining under the original License or Registration. The License or Registration must thereafter be renewed by the timely filing of a renewal application and, for Licensees, the payment of the $50,000 renewal fee, sixty (60) days prior to the original License or Registration’s anniversary date.

(c) A Licensee who assumes control under this provision must pay the License renewal fee (less the $50,000 application fee) on the original Licensee’s anniversary renewal date. A Registrant who assumes control must pay the Registration fee applicable to a subsequent renewal term on the original Registrant’s renewal date.

(5) Any change of control that is effectuated without the express approval of the Council in accordance with these Rules is prohibited and will result in the Licensee’s License or Registrant’s Registration being void.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, 4-49-117, 4-49-121, 4-49-124, and 4-49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01-.14 but was renumbered 1350-01-.13 with the deletion of original rule 1350-01-.09 filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Rule was previously numbered 1350-01-.14 but was renumbered 1350-01- .13 with the deletion of original rule 1350-01-.09 filed September 15, 2023; effective December 14, 2023. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-01-.14 GROUNDS FOR REVOCATION OF LICENSE OR REGISTRATION

The Council may suspend or revoke a License or Vendor Registration if the Council finds, by a preponderance of the evidence, that:

(1) The Licensee or Registrant no longer has the financial stability, integrity, and responsibility to conduct Interactive Sports Gaming, or serve as a Vendor for Interactive Sports Gaming;

(2) The Licensee, Registrant, or its Key Personnel have been convicted of a disqualifying offense, as established by the Sports Gaming Act;

(3) The Licensee, Registrant or its Key Personnel have been arrested, charged, indicted, or received a target letter from the U.S. Department of Justice in connection with any investigation of offshore sports gaming activities that serviced the United States;

(4) The Licensee, Registrant or its Key Personnel have been arrested, charged with, convicted of, pleaded guilty to, or forfeited bail concerning any criminal offense under the laws of any jurisdiction, other than for a minor traffic offense;

(5) The Licensee, Registrant or its Key Personnel have knowingly made a false statement of a material fact in any application or other communication to the Council, or failed to disclose to the Council its knowing violation of this Rule, as applicable;

(6) The Licensee, Registrant or its Key Personnel have been indicted on any felony offense, gambling-related offense, or other offense(s) that the Council finds will threaten the integrity of sports wagering in Tennessee and the public interest;

(7) The Licensee or Registrant has had a license to operate any gaming or sports wagering activity suspended or revoked, or been denied from operating any gaming or sports wagering activity by any governmental authority responsible for the regulation of gaming activities in any jurisdiction;

(8) The Licensee or Registrant has failed to timely remit any privilege tax due the State of Tennessee, timely pay any fine assessed by the Council, or timely remit the balance of any application, license, or other fees due the Council;

(9) The Licensee or Registrant, without approval of the Council, has sold, transferred, assigned, gifted or donated, or otherwise disposed of, all or substantially all of its assets, other than those bought and sold in the ordinary course of business, or otherwise entered into an unauthorized change of control;

(10) The Licensee or Registrant has filed, or had filed against it, a proceeding for bankruptcy, liquidation, or insolvency;

(11) The Licensee or Registrant has been served with a complaint, lien, or other notice filed with any public body regarding a payment of any tax or obligation required under any law in any jurisdiction, where the Licensee or Registrant has been in breach for one or more years; or (12) The Licensee or Registrant has materially failed to comply with any of the individual or several provisions of the Rules of the Council.

History

Authority: T.C.A. §§ 4-49-104, 4-49-115, 4-49-117, 4-49-121, 4-49-124, 4-49-125, and 4-49-126.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Rule was previously numbered 1350-01-.15 but was renumbered 1350-01-.14 with the deletion of original rule 1350- 01-.09 filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Rule was previously numbered 1350-01-.15 but was renumbered 1350-01-.14 with the deletion of original rule

Tenn. Comp. R. & Regs. 1350-01-.15 SPORTS GAMING SYSTEM REQUIREMENTS

(1) Sports Gaming System Operational Assessment.

(a) Licensee shall, prior to commencing operations and annually thereafter, prior to renewal, obtain a Sports Gaming System Operational Assessment, demonstrating that its Sports Gaming System meets the standards set forth in these Rules. The Sports Gaming System must be reviewed, tested, and certified by a recognized Independent Testing Laboratory that is registered as a Vendor. The Independent Testing Laboratory’s Sports Gaming System Operational Assessment must be submitted to the Council and shall, at a minimum, include the following:

An assessment of the Sports Gaming System’s compliance with Rules 1350-01- .03(4), 1350-01-.03(7), 1350-01-.06(7)(a)1. through 5., 1350-01-.07(8)(a), 1350- 01-.07(8)(c), 1350-01-.07(8)(d), 1350-01-.07(16)(a),1350-01-.08(2), 1350-01- .08(3)(a)1. through 7., 1350-01-.08(3)(b)1. through 5., 1350-01-.08(4)(a) through (c), 1350-01-.08(5), 1350-01-.08(8), 1350-01-.08(9)(a) through (e), 1350-01- .08(10)(a) through (f), 1350-01-.08(13), 1350-01-.08(14), 1350-01-.08(17), 1350- 01-.08(18), 1350-01-.08(19), 1350-01-.08(20)(a), 1350-01-.08(20)(d)2. and 3., 1350-01-.08(21)(a) through (e), 1350-01-.08(22)(a) through (d), 1350-01- .15(1)(b)1. through 6., 1350-01-.15(1)(c), 1350-01-.15(1)(d)1. through 13., 1350- 01-.15(1)(e)1. through 6., 1350-01-.15(1)(f)1. through 4., 1350-01-.15(1)(g)1. through 4., 1350-01-.15(1)(i), 1350-01-.15(1)(j)1.(i) through (v), 1350-03-.03(3)(a) through (h), 1350-03-.11(1), 1350-03-.11(2)(a) and (b), 1350-03-.11(4)(a) through (d), 1350-03-.12(1) through (6), 1350-03-.12(8), 1350-03-.12(13)(a) through (g), 1350-03-.12(14)(a) through (d), 1350-03-.12(15)(a) through (c), 1350-03- .12(15)(e) through (h), and 1350-03-.13.
Name and company affiliation of the individuals who conducted the assessment;
Date of assessment;
Findings with regard to compliance with the Sports Gaming System requirements set forth in these Rules;
Recommended corrective action, if any; and 6. The Applicant’s response to the findings and recommended corrective action, including a timeline for any corrective action.

(b) A Sports Gaming System must address, at a minimum, the following functions:

Wagering management;
Sports Gaming Account management;
Location requirements for placing Wagers;
Verification of all system, data, software-related components and time synchronization;
Ability to report and detect abnormal betting patterns and Unusual Wagering Activity, Suspicious Wagering Activity, or illegal Wagering activity; and 6. Preventing the acceptance of Wagers from Prohibited Participants.

(d) A Sports Gaming System shall record and store the following information for each Wager made, and be capable of transmitting it to the Council upon request:

Description of Event;
Event Number;
Wager selection;
Type of Wager;
Amount of Wager;
Date and time of Wager;
Unique Wager identifier(s);
User ID;
Current Wager status (i.e., active, cancelled, unredeemed, pending, etc.);
Relevant location information, including the internet protocol address if applicable;
The results of the Wager;
Amount won; and 13. Date and time winning Wager was paid to Player.

(e) A Sports Gaming System that issues and/or redeems a Promotional Credit shall record the following information:

Amount of Promotional Credit;
Date, time, and method of issuance;
Unique Promotional Credit identifier;
Expiration period for the Promotional Credit;
User ID assigned to the Promotional Credit; and 6. Date, time, and method of redemption of Promotional Credit, if applicable.

(f) A Sports Gaming System that offers live betting shall be capable of the following:

The accurate and timely update of odds for live betting Wagers;
The ability to notify the Player of any change in odds that is not beneficial to the Player after a Wager is attempted;
The ability for the Players to confirm the Wager after notification of the odds change; and 4. The ability to freeze or suspend the offering of Wagers when necessary.

(g) When a Wager is Voided or Cancelled, the Licensee shall make an entry in the Sports Gaming System indicating the void or cancellation.

In the event that a Licensee voids or cancels a Wager pursuant to these Rules prior to the outcome of the Event being known, the Licensee shall report the Wagering data on a monthly basis as part of the privilege tax submission in accordance with Rule 1350-01-.07(6).
In the event that a Wager is placed after the outcome of the Event is known, the Licensee shall void the Wager, but must Immediately Notify the Executive Director.

A Licensee shall only void such a Wager upon review and approval by Key Personnel or his or her designee.

In the event that a Licensee wants to void a Wager for any reason other than Obvious Error after the outcome of the Event is known, if the Wager was placed before the outcome of the Event is known, the Licensee shall void the Wager, but must Immediately Notify the Executive Director. A Licensee shall only void such a Wager upon review and approval by Key Personnel or his or her designee.
In the event that a Licensee wants to void a Wager due to Obvious Error after the outcome of the Event is known, if the Wager was placed before the outcome of the Event is known, the Licensee must first obtain prior approval from the Executive Director. When requesting approval to void such a Wager, the Licensee shall provide the following information, in the form and manner required by the Council:

(i) A detailed explanation regarding why the error constitutes an Obvious Error, including comparable market offerings, as applicable;

(ii) A root cause analysis of the error, including a plan to prevent the same error from occurring again; and (iii) A Wager transaction report on the impacted market.

In the event that a Licensee voids a Wager due to an indication of Suspicious Wagering Activity, the Licensee must Immediately Notify the Executive Director.

(h) A Sports Gaming System shall be capable of verifying that all components of the Sports Gaming System are the authentic, approved versions used to offer, record, and process Wagers to ensure there have been no unauthorized modifications. The Sports Gaming System must be able to detect if any system component is determined to be invalid in the event of an authentication failure.

(i) A Sports Gaming System shall have controls in place to review the accuracy and timeliness of any data feeds used to offer or settle Wagers. In the event that an incident or error occurs that results in a loss of communication with data feeds used to offer or redeem wagers, such error shall be recorded in a log capturing the date and time of the error, the nature of the error, and a description of its impact on the system’s performance.

Such information shall be maintained for a minimum period of two (2) years.

(j) The Sports Gaming System shall provide the Council with access to Wagering systems, transactions, and related data as deemed necessary by the Council, in the manner required by the Council. This access shall include but is not limited to the following:

The ability to query the Sports Gaming System and view the following information:

(i) Patron liability by account;

(ii) Active future Wagers;

(iii) Voided and Cancelled Wagering activity;

(iv) Suspicious Wagering Activity; and (v) Deposit information (including type of payment accepted).

(k) A Sports Gaming System shall provide a mechanism for the Council to query and export all Sports Gaming System data in the manner required by the Council.

(2) Sports Gaming System Technology Integrity and Security Assessment (a) Licensee shall, prior to commencing operations and annually thereafter, prior to renewal, obtain a Sports Gaming System Technology Integrity and Security Assessment conducted by a recognized Independent Testing Laboratory that is registered as a Vendor. The Independent Testing Laboratory’s Sports Gaming System Technology Integrity and Security Assessment must be submitted to the Council and shall, at a minimum, include the following:

A vulnerability assessment of the Sports Gaming System’s internal and external network infrastructure, to identify vulnerabilities of all devices, platforms, and applications connected to or present on its networks;
A penetration test of the Sports Gaming System’s internal and external network infrastructure to confirm if identified vulnerabilities of all devices, platforms, and applications are susceptible to compromise;
An assessment of the Sports Gaming System’s compliance with Rules 1350-01- .15(1)(h), 1350-03-.03(1) and (2), 1350-03-.03(4) and (5), 1350-03-.12(9), 1350- 03-.12(10), and 1350-03-.12(11);
Name and company affiliation of the individual(s) who conducted the assessment;
Date of assessment;
Findings related to technological integrity and security in accordance with these Rules;
Recommended corrective action, if applicable; and 8. The Licensee’s response to the findings and recommended corrective action, including a timeline for any corrective action.

History

Authority: T.C.A. §§ 4-49-106 and 4-49-115(f).
Administrative History: New rule filed April 1, 2025; effective June 30, 2025.

Chapter 1350-02 Dispute Resolution

Tenn. Comp. R. & Regs. 1350-02-.01 APPLICABILITY OF REGULATION

This Chapter contains the mechanism by which Applicants who have submitted an application for a License or Registration to the Council pursuant to the Sports Gaming Act and the Rules promulgated thereunder (the “Rules”), may obtain a hearing on the denial of the Application or renewal. This Chapter also provides the procedure by which a License or Registration may be revoked, suspended, or not renewed, or upon which a fine or civil penalty may be imposed. These contested case provisions of the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301, et seq., apply to the extent that they do not conflict with the specific provisions of these Rules.

History

Authority: T.C.A. §§ 4-49-105, 4-49-106, 4-49-115, 4-49-115(f), 4-49-117, 4-49-126, 4-49-127, 4-49-128, 4-49-129, and 4-49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-02-.02 DENIAL OF APPLICATION FOR LICENSE OR REGISTRATION

(1) The Council, upon recommendation by the Executive Director or a committee of the Council, may deny a License or Registration if the Applicant has failed to meet the qualifications for a License or Registration in accordance with the Sports Gaming Act or the Rules.

(2) Any Applicant whose application has been denied by the Council, shall have a right to request reconsideration of the Council’s decision in accordance with this Chapter.

(3) If the Council issues a denial, the Executive Director will deliver, or cause to be delivered, to the Applicant a written Notice of Denial sent by certified U.S. mail or national delivery service to the Applicant’s address on file with the Council and by e-mail to the contact Person for the Applicant on file with the Council. At that time, the Applicant will also be provided with Written Notice of the process for requesting reconsideration of the Council’s decision.

(4) If the Applicant’s request for reconsideration is successful, a License or Registration will be approved by the Council, as applicable. If the request for reconsideration is unsuccessful, the Applicant may request judicial review of the Council’s decision to deny the License or Registration. Such appeals must be filed with the Chancery Court of Davidson County, Tennessee.

(a) The Chancery Court shall hear appeals based on the record of the proceedings before the Council.

(b) The Chancery Court may reverse the decision of the Council only if the appellant proves the decision of the Council to be:

Clearly erroneous;
Arbitrary and capricious;
Procured by fraud;
A result of substantial misconduct by the Council; or 5. Contrary to the United States Constitution, the Constitution of Tennessee, or the Sports Gaming Act.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, 4-49-117, and 4-49-128.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-02-.03 REVOCATION, SUSPENSION, FINES, CIVIL PENALTIES, AND NONRENEWALS OF

LICENSES OR REGISTRATIONS.

(1) Upon information and belief that a Licensee or Registrant has violated the Sports Gaming Act or the Rules, the Council, through its Executive Director and security personnel, may conduct investigations and recommend to the Council the revocation, suspension, or nonrenewal of a License or Registration or the imposition of a fine thereon for any of the reasons set forth in the Sports Gaming Act or the Rules. A recommendation may also be made that the Council impose a civil penalty for violations of the Sports Gaming Act. During an investigation, the Executive Director, on behalf of the Council, may issue subpoenas to compel the attendance of witnesses and the production of relevant books, accounts, records, and documents.

(2) If, in the discretion of the Council, revocation, suspension, or nonrenewal of any License or Registration or imposition of a fine or civil penalty thereon is in the best interests of the Council or the public policy or welfare of the State of Tennessee, the Council may revoke, suspend, or not renew such License or Registration or impose a fine or civil penalty, only after notice and a right to a hearing, in accordance with the provisions of the Sports Gaming Act and these Rules. Notwithstanding the foregoing, a License or Registration may be temporarily suspended at a virtual emergency meeting of the Council upon exigent circumstances in accordance with the Sports Gaming Act.

(a) Virtual emergency meetings may only be conducted if the Council:

Not less than twenty-four (24) hours prior to the meeting, provides on its website public notice of the meeting;
Provides adequate electronic or other notice to each Licensee or Registrant with an interest in the meeting;
Provides an audio or video feed of the meeting on its website which is accessible to the general public; and 4. Provides a mechanism by which any Licensee or Registrant subject to disciplinary action at the meeting has the opportunity to provide testimony and submit evidence to the Council members electronically.

(b) Disciplinary action taken against a Licensee or Registrant at a virtual emergency meeting is temporary until the Council conducts a full investigative hearing on the matter in accordance with the Sports Gaming Act not later than five (5) business days after the conclusion of the virtual emergency meeting.

(3) Except as otherwise provided herein, each Licensee or Registrant whose License or Registration may be revoked, suspended, or not renewed, or upon which a fine or civil penalty may be imposed shall receive Written Notice thereof stating the reason(s) therefore, and, in the case of a proposed suspension, the term of the proposed suspension. Such notice shall be sent by certified mail, return receipt requested or by a national delivery service to the Licensee or Registrant’s address on file with the Council and by e-mail to the contact Person for the Licensee or Registrant on file with the Council. Any Licensee or Registrant is presumed to have received such notice on the fifth business day following the date such notice was placed in the mail, addressed to the last known mailing address of such Licensee or Registrant on file with the Council.

(4) Upon the appeal of the suspension of a License or Registration, the term of suspension may be stayed by the Council for good cause shown pending the final outcome of any appeal.

(5) After suspension, revocation, or nonrenewal of a License, the Licensee shall settle all outstanding amounts of privilege tax owed or anticipated to be owed by the Licensee to the Council in a form, manner and timeframe acceptable to the Council, on a date designated by the Executive Director or his/her designee.

(6) Immediately upon any suspension, revocation, or nonrenewal of a License, such Licensee shall cease and desist from taking any further Wagers and post on its website a statement explaining its status. The statement must receive prior approval by the Council. Any Licensee shall send notice to all Sports Gaming Account holders that the Licensee is prohibited from offering Interactive Sports Gaming in Tennessee for the designated period. The Licensee shall, within the next ten (10) days, refund all deposits and amounts of unsettled Wagers made to the Player’s Sports Gaming Account, give Players the method for withdrawal or distribution of funds in the Sports Wagering Account, and deactivate the Sports Wagering Accounts upon distribution of all funds. All Vendor Registrants must submit notice to any Licensee with which it does business of its suspended, revoked, or nonrenewed status.

History

Authority: T.C.A. §§ 4-49-105, 4-49-106, 4-49-115, 4-49-115(f), 4-49-117, 4-49-126, 4-49-127, 4-49-128, 4-49-129, and 4-49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-02-.04 REQUEST FOR HEARING FOLLOWING NOTICE OF PROPOSED REVOCATION,

SUSPENSION, NONRENEWAL, FINE, OR CIVIL PENALTY.

(1) Any Licensee or Registrant may request a hearing regarding the proposed revocation, suspension, or nonrenewal of its License or Registration or the imposition of a fine or civil penalty. Any request for a hearing shall be in writing, addressed to the Council and be filed with the Council within five (5) business days of the date of receipt of Written Notice described in Rule 1350-02-.03(3). The Licensee or Registrant must provide a statement outlining the factual basis for the hearing and any additional relevant evidence to be considered by the Council along with its notice.

(2) All requests for hearings shall be sent by a national courier service, certified mail, or hand delivered, proof of delivery may be required, to the Executive Director at the Council’s official address listed on the Council’s website.

The request will be timely if it bears a United States Postal Service postmark showing mailing on or before the fifth (5th) business day prescribed above. A request delivered by hand or national overnight courier will be timely only if received by the Council at the above-stated address during its normal business hours on or before the fifth (5th) business day prescribed above.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, 4-49-126, and 4-49-129.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-02-.05 HEARING PROCEDURES FOLLOWING NOTICE OF PROPOSED REVOCATION,

SUSPENSION, NONRENEWAL, FINE, OR CIVIL PENALTY.

(1) All hearings conducted under this subsection shall be conducted by the Council. The Council may appoint an administrative judge or hearing officer to preside at the hearing, rule on questions of the admissibility of evidence, swear witnesses, advise the Council on the law of the case, and ensure that the proceedings are carried out in accordance with the law. The contested case provisions of the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-301, et seq. apply to the extent that they do not conflict with the specific provisions of these Rules.

(2) A hearing shall be conducted no later than one hundred eighty (180) days following receipt of a request for hearing given in accordance with the provisions of this Chapter. A notice setting forth the time, date, and location of the hearing and the right to be represented by counsel will be sent to the party or parties requesting such hearing at least thirty (30) days before the date set for such hearing. The notice shall also include a statement of the legal authority and jurisdiction under which the hearing is to be held, including reference to the particular sections of the statutes and Rules involved. The Council or ALJ may, upon good cause being shown or by agreement of the parties, continue the hearing to a later date.

(3) In connection with a hearing, the Council or administrative law judge may:

(a) Conduct the hearing in an informal manner without formal rules of evidence or procedure;

(b) Request that the Executive Director, or administrative law judge hold pre-hearing conferences to:

Settle, simplify, or identify the issues involved in the hearing; or 2. Consider other matters that may aid in the expeditious disposition of the hearing;

(c) Require each complaining party to state, either orally or in writing, its position concerning the various issues involved in the hearing;

(d) Require each complaining party to produce for examination those relevant witnesses and documents under its control;

(e) Rule on motions and other procedural items pending before the Council, including, without limitation, the methods, scope, and extent of discovery available to any party;

(f) Regulate the course of the hearing and conduct of the participants, including the imposition of reasonable time limits;

(g) Establish time limits for submission of motions or memoranda;

(h) Take official notice of any material fact not appearing in evidence in the record, if the fact is among the traditional matters of judicial notice;

(i) Administer oaths or affirmations; and (j) Issue subpoenas to compel the attendance of witnesses and production of relevant documents.

(4) Any party may request that the hearing be conducted before a court reporter. Such request must be in writing and include an agreement by the requesting party that it shall pay for, or that it shall procure at its own cost and on its own initiative, the court reporting services for such hearing. To be made part of the record, the original transcript of any such proceedings shall be submitted to the Council as soon as the transcript is available, but not later than twenty (20) business days after the hearing.

(5) The Council shall provide a written decision containing the Council’s ruling. If a License or Registration is revoked, suspended, or not renewed by the Council, the Council shall state the term of the imposed discipline, and may prescribe conditions for reinstatement of the License or Registration. A copy of the decision must be sent by certified mail, return receipt requested, or delivered by a national courier service to the party who requested the hearing. The party is presumed to have received such decision from the Council on the fifth (5th) business day following the date such decision was sent to the last known address of such party.

History

Authority: T.C.A. §§ 4-49-105, 4-49-106, 4-49-115, 4-49-115(f), 4-49-126, 4-49-127, 4-49-128, and 4-49- 129.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-02-.06 REQUESTS FOR RECONSIDERATION

(1) A request for reconsideration from a decision of the Council may be filed with the Council within fifteen (15) days of the date of receipt of such decision.

(2) A request for reconsideration must be sent by certified mail, return receipt requested, or national courier services or hand delivered (proof of service may be required) to the Executive Director at the Council’s official address listed on the Council’s website.

A request for reconsideration will be timely filed if it has an electronic stamp from a national courier or bears a United States Postal Service postmark showing mailing on or before the fifteenth (15th) day prescribed above. A request for reconsideration delivered by hand will be timely filed only if received by the Council at the above-stated address during its normal business hours on or before the fifteenth (15th) day prescribed above.

(3) A request for reconsideration must be in writing and shall contain the following:

(a) A copy of the Council decision;

(b) A copy of the transcript from the hearing, if one was provided; and (c) The basis for the precise factual or legal error in the decision of the Council for which the request for reconsideration is made.

(4) The filing of a request for reconsideration shall not be a prerequisite for seeking judicial review.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, 4-49-126, and 4-49-128.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-02-.07 RECONSIDERATION BEFORE THE COUNCIL

(1) Upon receipt of the request for reconsideration, the Council may within thirty (30) days of receiving the request, enter a written order either denying the request, granting the request and setting the matter for further proceedings, or granting the request and issuing a new order.

(2) A copy of the Council’s written decision on the request for reconsideration will be sent to the requestor by certified mail, return receipt requested, or by national courier service or hand delivered. The written decision of the Council will be final, and no further appeal to the Council will be allowed.

(3) If no action has been taken by the Council on the request within thirty (30) days, the request shall be deemed to have been denied.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, 4-49-126, and 4-49-127.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-02-.08 JUDICIAL REVIEW

(1) Any party aggrieved by a final decision of the Council may appeal the decision pursuant to T.C.A. § 4-49-128 in the Chancery Court of Davidson County, Tennessee. A petition for judicial review must be filed within sixty (60) days after receipt of the Council’s final written decision and any decision on reconsideration, if reconsideration is sought.

(2) The Chancery Court shall hear appeals based on the record of the proceedings before the Council. Within forty-five (45) days of service of the petition for judicial review, or within further time as allowed by the Chancery Court, the Council shall transmit to the reviewing court the entire copy of the record of the proceeding under review.

(a) The Chancery Court may reverse the decision of the Council only if the appellant proves the decision to be:

Clearly erroneous;
Arbitrary and capricious;
Procured by fraud;
A result of substantial misconduct by the Council; or 5. Contrary to the United States Constitution, the Constitution of Tennessee, or the Sports Gaming Act.

(b) The Chancery Court may remand an appeal to the Council to conduct further hearings.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, and 4-49-128.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-02-.09 PLAYER DISPUTES

Player disputes may involve a Player’s dispute regarding the amount of a Wager, promotions, application of House Rules, technology functions, any part of or transaction within the Interactive Sports Gaming process, or any matter important to the Player. Complaints that arise to the level of alleging violations of the Sports Gaming Act or the Rules will be handled by the Executive Director or his/her designee for investigation, and upon the recommendation of the Executive Director may be handled by the Council in accordance with this Rule. Alleged criminal violations will be referred to the TBI or appropriate law enforcement agency for investigation.

(1) In order to register a dispute, Players will be required to first file a formal grievance with the Sports Gaming Operator. The dispute must be filed within thirty (30) days of the occurrence of the incident or matter in dispute. In order to initiate the process, the Player will be required to provide to the Sports Gaming Operator, at a minimum, the following information:

(a) Personal contact information (name, address, phone number, e-mail address, etc.);

(b) Sports Gaming Operator Licensee and website, app, or other Interactive Sports Gaming platform;

(d) Approximate date and time of the incident, the amount and type of Wager in dispute, the Sporting Event and outcome, and any other relevant details regarding the incident, as applicable;

(e) A summary of the incident including any statements or communications made to or by the Sports Gaming Operator or witnesses and their contact information (name, address, phone number, e-mail address, etc.); and (f) Any other information or documentation pertinent to the dispute.

(2) If the Player is not satisfied with the solution proposed by the Sports Gaming Operator, the Player may present their grievance to the Executive Director within thirty (30) days of the decision by the Sports Gaming Operator. Within three (3) business days of receipt of the grievance, the Executive Director or his or her designee will begin an investigation into the matter and will subsequently determine an appropriate resolution. The Executive Director or his or her designee will then issue a decision on the matter.

(3) If the Player or the Sports Gaming Operator is dissatisfied with the decision of the Executive Director, either party may file an appeal with the Council within thirty (30) days of receipt of the Executive Director’s decision. Upon filing an appeal with the Council, the appealing party must file the record, consisting of the documents submitted to the Executive Director and the Executive Director’s written decision.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, and 4-49-115(f).
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-02-.10 APPEALS OF PLAYER DISPUTES BEFORE THE COUNCIL

(1) The Council will review the record on appeal and issue a written decision on behalf of the Council. The Council may decide the case on the existing record without a hearing, or the Council may convene a hearing in order to conduct a further investigation, and then issue a written decision following the hearing.

(2) If a hearing is held, either party may request that the hearing be conducted before a court reporter. Such request must be in writing and include an agreement by the requesting party that it shall pay for, or that it shall procure at its own cost and on its own initiative, the court reporting services for such hearing. To be made part of the record, the original transcript of any such proceedings shall be submitted to the Council as soon as the transcript is available, but not later than twenty (20) business days after the hearing.

(3) A copy of the Council’s written decision on the appeal will be sent to the parties by certified mail, return receipt requested, or hand delivered. The written decision of the Council will be final, and no further petition for rehearing or reconsideration to the Council will be allowed.

(4) Either party may seek judicial review of the final decision of the Council in accordance with the Sports Gaming Act and the Rules.

History

Authority: T.C.A. §§ 4-49-106, 4-49-115, and 4-49-128.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-02-.11 SCHEDULE OF ADMINISTRATIVE FINES

For any violation of the Sports Gaming Act or the Rules, the Council may impose an administrative fine not to exceed $25,000 per violation, after following the notice and hearing requirements of this Chapter. Except as provided in T.C.A. § 4-49-127, the Council may impose fines in accordance with this section.

Notwithstanding the notice and hearing requirements of this Chapter, the Council, through its Executive Director or other designee, may enter into an agreed order wherein an Operator or Vendor admits fault and agrees to the imposition of an administrative fine in accordance with the violation classes and ranges set forth in this Rule. An Operator or Vendor may waive its right to a hearing and appeal in the agreed order, and the Council will not be required to meet to assess the agreed-upon fine.

(1) Violation Classes.

(a) Class A includes those violations involving responsible gaming, fraud, criminal conduct, non-cooperation with Council investigations or audits, and failure to report illegal or suspicious conduct.

(b) Class B includes those violations involving unapproved amateur events or Wagers, financial violations other than late payment of renewal fees, failure to provide Council staff access to wagering systems, or failure to follow Player payment Rules.

(c) Class C includes those violations involving offering unapproved professional events or Wagers, failure to abide by House Rules or Internal Control Standards, or failure to timely respond to Player complaints.

(d) Class D includes those violations involving marketing (not involving responsible gaming) and geolocation.

(e) Class E includes those violations involving late payment of renewal fees.

(2) The Council has assigned the following ranges of fines available depending on the seriousness of the violation.

(a) Level 1 - Letter of warning.

Class A and Class B violations are not eligible for Level 1.
Class C and Class D violations falling under Level 1 will receive a letter of warning.

(b) Level 2 - $1,000 - $10,000.

(d) Level 4 - $20,000 - $25,000.

(e) Level 5 - Late fees.

Class E violations will incur the following late fees:

(i) $25 per day, beginning on the tenth day after the renewal fee is due and accruing daily until the thirtieth day after the renewal fee is due; and (ii) If the Operator or Vendor has still not paid its renewal fee by the thirtieth day after the renewal fee is due, the Council may suspend a License or Registration until the Licensee or Registrant pays the renewal fee.

(3) Factors for consideration. The Council may consider, but shall not be limited to, the following factors in making a determination on what level to assign to a violation and the amount of the fine to be imposed within the selected level:

(a) For fines in the Level 1 range, the Council may consider whether the violation was the Licensee’s or Registrant’s first offense, whether the violation was unintentional, whether the violation was self-reported, or other mitigating factors.

(b) For fines in the Level 2 range, the Council may consider whether the violation was unintentional, whether the violation was self-reported, or other mitigating factors.

(c) For fines in the Level 3 range, the Council may consider whether there have been multiple violations by a Licensee or Registrant, and whether or not the violation was intentional or unintentional.

(d) For fines in the Level 4 range, the Council may consider whether there have been multiple violations, whether the violation was self-reported, whether the Licensee or Registrant intentionally circumvented or disregarded regulatory guidance, whether the violation was in clear violation of the public interest, whether the violation targeted vulnerable Persons, and other aggravating factors.

(4) For purposes of this Chapter, a “violation” is any act, failure to act, or omission by a Licensee or Registrant that is prohibited by the Sports Gaming Act or the Rules.

(5) A single act of a Licensee or Registrant that results in the violation of more than one provision of the Sports Gaming Act or the Rules may result in a fine being imposed for each provision of the Sports Gaming Act or the Rules that is violated.

(6) Repeated violations of the same provision of the Sports Gaming Act or of the Rules by a Licensee or Registrant may result in a separate fine for each violation.

(7) Payment of a fine shall not excuse the failure to correct the violation, nor shall it bar further action in accordance with the Rules.

(8) Failure to timely remit a fine may be cause for the Council to suspend a License or Registration until the Licensee or Registrant pays the fine.

(9) Fines against Licensees that accept Wagers from Minors or other Persons ineligible to place Wagers in Tennessee or against Persons unlawfully accepting Wagers from another Person without a License or at a location in violation of the Sports Gaming Act will be imposed in accordance with the administrative fines set forth in T.C.A. § 4-49-127. The Council may also suspend, revoke or refuse to renew a Licensee in violation of this Rule.

(10) The Council shall use funds, if any, collected as a result of fines assessed against Licensees and Registrants, for the development and implementation of programs, materials, and services to provide education and outreach to protect the public interest and to promote the integrity of sports wagering, and to reimburse Council employees for Wagers lost as part of an investigation or audit on behalf of the Council under T.C.A. § 4-49-112(a)(1). The Council shall account for the funds, if any, collected as a result of fines. At the end of the fiscal year, all funds shall remain available for use by the Council for this purpose and must carry forward into each subsequent fiscal year.

History

Authority: T.C.A. §§ 4-49-106, 4-49-112(a)(1), 4-49-115, 4-49-115(f), 4-49-125, 4-49-126, 4-49-126(d), 4- 49-127, and 4-49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Chapter 1350-03 Minimum Internal Controls

Tenn. Comp. R. & Regs. 1350-03-.01 APPLICABILITY

This Chapter contains Minimum Internal Controls Standards (“MICS”) applicable to all Licensees and, by extension, to all Registrants that provide services that would otherwise be subject to Chapter 1350-03 if such services were provided by the Licensee. The purpose of this Chapter is to ensure all Licensees and applicable Registrants apply the same minimal due diligence to their Interactive Sports Gaming operations in the State of Tennessee, including procedures, administration, and accounting controls in order to maintain the integrity of sports wagering in the State of Tennessee and to protect the public interest.

Compliance with this Chapter ensures that Licensees and applicable Registrants have appropriate security controls in place so that Players are not exposed to unnecessary risks when choosing to participate in Interactive Sports Gaming.

This Chapter shall be included in and made a part of any Licensee’s Interactive Sports Gaming operations.

This Chapter may be amended pursuant to T.C.A. § 4-49-106(b). Defined terms, unless otherwise noted, shall have the same meaning included in Rule 1350-01-.02.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-125, and 4-49-131 and 2023 Tenn. Pub. Acts, Ch. 450.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Emergency rules filed June 20, 2023 to become effective July 1, 2023; effective through December 28, 2023. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-03-.02 ; and (iv) The implementation of technology related to Voluntary Self-Exclusion and other Prohibited Players.

The MIS function shall also be responsible for, without limitation, the specification of appropriate computer software, hardware, and procedures for security, physical integrity, business continuity, and maintenance of:

(i) Access codes and other data-related security controls used to ensure appropriately limited access to computers and the system-wide reliability of data;

(ii) Computer tapes, disks, or other electronic storage media containing data relevant to sports wagering operations;

(iii) Computer hardware, communications equipment and software used in the conduct of sports gaming operations; and (iv) Adequate segregation of duties exists among developers, testing personnel, administrators, personnel who may promote changes into production, personnel who may access frozen code, etc.

A chief information officer, or equivalent, shall supervise the MIS function.
All incidents related to information systems security, which may compromise the confidentiality, integrity, or availability of the Sports Gaming System, or involving Player Personally Identifiable Information (PII) shall be reported to the Council Immediately.

(e) Compliance.

Each Licensee shall maintain a Compliance function, which shall be responsible for, without limitation, the following:

(i) Due diligence and regulating reporting requirements;

(ii) Serving as contact with the Council on regulatory matters;

(iii) Monitoring the Voluntary Self-Exclusion program;

(iv) Player complaints;

(v) Investigating Unusual and Suspicious Wagering Activity; and (vi) AML monitoring and reporting pursuant to federal law.

A compliance officer, or equivalent, shall supervise the Compliance function.

(f) Risk Management 1. If a Licensee maintains an internal Risk Management function, the Licensee’s internal Risk Management function shall be supervised separately from the Licensee’s marketing team.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-119(b), and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.03 USER ACCESS CONTROLS FOR ALL INTERACTIVE SPORTS GAMING PERSONNEL

(1) A system administrator shall establish user accounts for all new employees responsible for or with duties relating to Interactive Sports Gaming in the State of Tennessee. Provisioning for user accounts consists of assigning application functions matching the employee’s job responsibilities, unless otherwise authorized by management personnel, to ensure adequate separation of duties.

(2) The access provisioning process must be documented. Documentation must evidence authorization by the appropriate management personnel, original user access, and each subsequent change to the user account. Documentation must be maintained and made available upon request to the Council.

(3) A Sports Gaming System must store “User Access Listing” information and contain at a minimum:

(a) Employee name and title or position;

(b) User login name;

(d) Date and time account created;

(e) Date and time of last login;

(f) Date of last password change;

(g) Date and time account disabled/deactivated; and (h) Group membership of user account, if applicable.

(4) “User Access Listing” information for the Sports Gaming System is to be retained for the most recent five (5) years. The information may be archived electronically if the listing is written to unalterable media (secured to preclude alteration). The list of users and user access for a Sports Gaming System must be available in electronic format that can be analyzed by analytical tools (e.g., spreadsheet or database) that may be employed by the Council.

(5) When multiple user accounts are used for one employee within a single application, only one user account may be active (enabled) at a time if the concurrent use of the multiple accounts by the employee could create a segregation of duties deficiency. Additionally, the user account must have a unique prefix/suffix to easily identify the users with multiple user accounts within one application.

(6) The system administrator must be notified Immediately when an employee, including one who has a user account with remote access capability, is known to be no longer employed (e.g., voluntary or involuntary termination of employment). Hostile terminations require immediate notification to the system administrator who must promptly disable/remove access rights to the system(s). Upon notification, the system administrator must change the status of the employee’s user account from active to inactive (disabled) status.

The period of time for notification of the system administrator is to be set such that it is unlikely that the terminated employee would gain access, remote or otherwise, within the notification period.

(7) The “User Access Listing” information must be reviewed at least quarterly by personnel independent of the authorization and user provisioning processes. The reviewer must maintain adequate evidence to support the review process, which includes the selected user accounts reviewed, documentation of the results of the review, and e-mails or signatures and dates indicating the individual(s) performing the review and when the user access listing was reviewed. For each of the randomly selected users, confirm that:

(a) The assigned system functions are being used as authorized (i.e., system functions are appropriate for user’s job position);

(b) The assigned functions provide an adequate segregation of duties;

(d) Passwords have been changed within the last 60–90 days or in accordance with another password expiration policy as approved by the Council; and (e) There are no inappropriate assigned functions for group membership, if applicable.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.04 SEGREGATION OF DUTIES

(1) Each Licensee shall maintain an organizational structure that meets the following minimum criteria designed to preserve the integrity of the Interactive Sports Gaming operation:

(a) A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their area of responsibility;

(b) The segregation of incompatible functions so that no employee is in a position either to commit an error or perpetrate a fraud or to conceal an error or fraud in the normal course of his or her duties;

(c) Primary and secondary supervisory positions which permit the authorization or supervision of necessary transactions at all relevant times; and (d) Areas of responsibility that are not so extensive as to be impractical for one individual to monitor.

(2) In addition to satisfying the above requirements, each Licensee’s organizational structure shall include, at a minimum, the following functions, responsibilities, and supervisory roles:

(a) Accounting.

Each Licensee shall have one or more individuals responsible for and dedicated to verifying financial transactions, and reviewing and controlling accounting forms and data. This function, which is sometimes referred to as “income or revenue audit,” shall be independent of the transactions under review.
An accounting officer, or equivalent, shall supervise the accounting functions, responsibilities, and supervisory roles as provided for in this section.

(b) Interactive Sports Gaming.

Each Licensee shall have Interactive Sports Gaming functions, responsibilities, and supervisory roles for Interactive Sports Gaming, which shall be responsible for the conduct of the Interactive Sports Gaming in accordance with the Rules.
Interactive Sports Gaming shall be supervised by a management-level employee who ensures that there is sufficient supervision, knowledge, and training to provide for the proper and fair conduct of sports gaming.
Key Personnel shall supervise the Interactive Sports Gaming functions, responsibilities, and supervisory roles as provided for in this section.

Each Licensee shall maintain an Internal Audit function for Interactive Sports Gaming either through an employee serving as internal auditor with sufficient background and experience to fulfill the role, through the use of company Internal Audit, or through outsourcing of this function. The Internal Audit function shall be responsible for, without limitation, the following:

(i) Reviewing and appraising the adequacy of Internal Control Standards;

(ii) Ensuring compliance with Internal Control Standards through observations, interviews and review of accounting documentation;

(iii) Reporting instances of non-compliance with the system of Internal Control Standards;

(iv) Reporting any material weaknesses in the system of Internal Control Standards; and (v) Recommending improvements in the system of Internal Control Standards.

If maintained in-house, the Internal Audit function shall be supervised by an accounting officer, or equivalent.
The Internal Audit function shall maintain its independence through an organizational reporting line that is outside the management of the sports gaming operation. The supervisor of the Internal Audit function shall have authority to access and report to any Person or group independent of the business, such as to a non-executive independent director, compliance committee member, or independent audit committee.
Reports documenting all performed internal audits shall be maintained for a minimum of five years and shall be provided to the Council within ten (10) days of completion. Documentation of Internal Control Standards testing shall be made available to the Council upon request.
All material exceptions resulting from Internal Audit work shall be investigated and resolved with the results of such being provided to the Council within ten (10) days of the resolution of the exception, and thereafter retained by the Licensee for a minimum of five (5) years.
Material Internal Audit findings shall be reported to management within ten (10) days of the finding. Non-material Internal Audit findings shall be reported to management within ten (10) days of the finding validation.
Management shall be required to respond to Internal Audit findings stating corrective measures to be taken to avoid recurrence of the audit exception. A report on corrective measures to be taken shall be sent to the Council simultaneously with or within ten (10) days of the Internal Audit non-compliance report.

(d) Management Information Systems (MIS).

Each Licensee shall maintain an MIS function, which shall be responsible for:

(i) The operation and integrity of the Sports Gaming System;

(ii) The quality, reliability, and accuracy of all computer systems used in the operation;

(iii) Compliance with the change management provisions contained in Rule

Tenn. Comp. R. & Regs. 1350-03-.05 RISK MANAGEMENT PROCEDURES

Each Sports Gaming System submitted to the Council for approval shall contain a description of its Risk Management framework, including the following:

(1) Sources of data and information feeds and services, including, but not limited to, official data odds and line monitoring services;

(2) Integrity Monitoring Systems; and (3) Risk Management support.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.06 IDENTIFYING AND REPORTING UNUSUAL AND SUSPICIOUS ACTIVITIES

A Licensee shall have Integrity Monitoring System procedures in place to identify Unusual Wagering Activity and Suspicious Wagering Activity and report such activity in accordance with procedures approved by the Council.

(1) Licensee’s Integrity Monitoring System Procedures shall provide for the sharing of Unusual and Suspicious Wagering Activity with the Council, either directly or through the Licensee’s approved Independent Integrity Monitoring Provider.

(2) If a Licensee finds that previously reported Unusual Wagering Activity rises to the level of Suspicious Wagering Activity or if an activity constitutes Suspicious Wagering Activity, it shall Immediately Notify the Council.

(3) The monitoring and reporting requirements for Unusual and Suspicious activity, include, at a minimum:

(a) Attempts to violate or evade any federal, state, or local law or regulations pertaining to Interactive Sports Gaming in any jurisdictions;

(b) Violations or attempted violations of federal or state Anti-Money Laundering (AML) laws;

(d) Unusual geographical concentration of betting;

(e) Wagers that have been placed online or through a mobile device using different accounts but having the same IP address;

(f) Unusual and abnormal proportion of Bets against the favorite or for the underdog; or (g) Unusual volumes of betting relative to the norm.

(4) If the Council receives an Unusual or Suspicious Wagering Activity report from a Licensee, the information shall be deemed confidential and shall not be revealed in whole or in part, except upon lawful order of a court of competent jurisdiction or upon notice or referral of a matter for further investigation to any law enforcement agency, regulatory or government agency, or sports governing body within the sole and absolute discretion of the Council.

(5) Upon request by the Council or the Executive Director, a Licensee shall provide remote, readonly access and the necessary hardware for the Council to evaluate or monitor the Sports Gaming System.

(6) Licensees shall submit a monthly report to the Council that includes:

(a) The total number of Licensee’s Sports Gaming Accounts created in Tennessee that have passed KYC and been activated as of the date of the report; and (b) The total number of Licensee’s Sports Gaming Accounts created in Tennessee that Licensee suspended at any time for any reason during the prior month (whether or not those Sports Gaming Accounts are still suspended as of the date of the report). If an account is suspended more than once in a month, it should just be counted as one suspension in the report.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-122, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.07 PREVENTION OF INTERACTIVE SPORTS GAMING BY INELIGIBLE BETTORS

Each Licensee shall submit to the Council its methodology for preventing a Bettor who is ineligible due to his/her inclusion in one or more classes of ineligible Bettors as enumerated in the Sports Gaming Act, § 4- 49-112 from placing a Wager on Sporting Events or collecting winnings from Interactive Sports Gaming.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-112, 4-49-115, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-03-.08 AML AND REGULATORY COMPLIANCE STANDARDS

(1) Each Licensee shall submit to the Council for approval a description of its AML and regulatory compliance programs, policies, and procedures, including a description of the following:

(a) Controls for payouts of $10,000 or more;

(b) The process for identifying the structure of multiple Wagers within a 24-hour period in order to circumvent reporting and recoding requirements; and (c) The process for creating a log of Wagers of $5,000 or more.

(2) Each Licensee shall submit a monthly report to the Council of any violation or non-compliance with the AML compliance program, policies, and procedures; AML laws or regulations; any regulatory compliance program, policies, and procedures; or any law or regulation governing the Licensee in any jurisdiction, including the State of Tennessee. If there is nothing to report, the Licensee does not have to submit such a report.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-122, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.09 TYPES OF WAGERS AVAILABLE

(1) Each Licensee shall only offer Wagers on Sporting Events approved by the Council, a list of which shall be posted on the Council’s website. The Council shall notify Licensees when a Sporting Event is no longer included on the list of approved Sporting Events upon which Wagers may be placed or accepted.

(2) Any entity may petition the Council for approval of a new Sporting Event upon which Wagers may be placed or accepted.

(a) A petition for approval of a proposed new Sporting Event must be in writing and submitted a minimum of 72 hours prior to being offered.

(b) A proposed new Sporting Event may be a variation of an authorized sports wagering Event, a composite of authorized Sporting Events, or any other Sporting Event compatible with the public interest.

(c) A petition for a proposed new Sporting Event shall be in writing, signed by the petitioner, and shall include the following information:

The name of the petitioner;
Whether the new Sporting Event is a variation of an authorized Sporting Event, a composite of authorized Sporting Events, or any other Sporting Event compatible with the public interest;
A complete and detailed description of the new Sporting Event for which approval is sought;
Evidence of governing body rules and regulations or independent integrity monitoring of the new Sporting Event; and 5. Any other pertinent information or material requested by the Council.

(d) No Wagers may be accepted on a proposed Sporting Event until it has been approved by the Council.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, 4-49-122, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-03-.10 THIRD-PARTY SYSTEMS

(1) The Licensee shall have policies and procedures for managing third parties who provide information system services, hardware, and/or software or interact with the Sports Gaming System. Licensees are responsible for monitoring their adherence to relevant security requirements, including:

(a) Agreements with third-party service providers involving accessing, processing, communicating, or managing the system and/or its components, or adding products or services to the system and/or its components shall cover all relevant security requirements.

(b) The services, reports, and records provided by the third-party service providers shall be monitored and reviewed annually.

(c) Changes to the provision of third-party service providers, including maintaining and improving existing security policies, procedures, and controls, shall be managed, taking account of the criticality of systems and processes involved and re-assessment of risks.

(d) The access rights of third-party service providers to the system and/or its components shall be removed upon termination of their contract or agreement or adjusted upon change.

(e) Verification that third-party service providers are registered as a Vendor in accordance with the Rules as may be required.

(2) Third parties who provide information system services and/or software must comply with the requirements set forth in Sections 1350-03-.12 and 1350-03-.13.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022.

Tenn. Comp. R. & Regs. 1350-03-.11 PROHIBITION ON WAGERS AND PAYOUTS TO MINORS

(1) Licensees shall not permit Sports Gaming Accounts to be established, deposits to be made by, or Wagers to be placed by Minors. Each Licensee shall maintain a system through which it verifies the age and identity of the Bettor and verifies that neither Wagers nor deposits are made by Minors. This system shall be approved by the Council through the Sports Gaming System Operational Assessment.

(2) Licensees shall establish procedures to reasonably ensure that a Bettor who is a Minor is prohibited from participating in Interactive Sports Gaming and shall delineate such procedures within the Licensee’s written system of Internal Control Standards. These procedures, at a minimum, shall include:

(a) Verification of the full identity of the Bettor prior to the Bettor being allowed to make a deposit into his/her Sports Gaming Account or make a Wager on a Sporting Event; and (b) Verification of the Bettor’s age through a recognized national database or service (or other commercially reasonable standard for age verification) using at a minimum the Player’s full name, date of birth, and last four (4) digits of the Bettor’s social security number or the equivalent for a foreign Bettor who places a Wager within Tennessee (such as a passport or taxpayer identification number).

(3) Licensees shall provide the Council information about its procedures or methodology for verifying the age of a Bettor. Licensee shall notify the Council of any changes to its procedures or in the event there is a change of a Vendor, as applicable, that provides age verification services to the Licensee.

(4) Licensees shall prohibit any Minor from depositing to a Sports Gaming Account and from collecting payouts or winnings from Interactive Sports Gaming. If a Licensee has actual knowledge that a payment method linked to a Sports Gaming Account is a Minor’s account or is an account held jointly by a Player and a Minor, the Licensee shall:

(a) Immediately suspend the Player’s Sports Gaming Account and prohibit the Player from placing Wagers;

(b) Retain any winnings attributable to the Player;

(c) Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and (d) Deactivate the Sports Gaming Account.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-111, 4-49-115, 4-49-115(f), and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.12 INFORMATION SYSTEM MINIMUM CONTROLS

(1) Licensees shall verify Sports Gaming Systems daily to ensure the date and time is properly displayed and registered for Wagers made pursuant to Sports Gaming Accounts. Licensees shall Immediately Report any discrepancies to the Council.

(2) Licensees shall implement procedures for the safeguarding of Sports Gaming Accounts, including maintaining the security of identity and financial information of Players.

(3) Sports Gaming Systems shall be designed to only allow Wagers to be created using an authorized Sports Gaming Account.

(4) Sports Gaming Systems shall contain a mechanism to prevent the creation of a Wager before or after the official Wager timeframe (i.e., prior to posting of the Wager and subsequent to the outcome of a Sporting Event or cutoff).

(5) Sports Gaming Systems shall automatically authorize payment of winning Wagers and update a Player’s Sports Gaming Account.

(6) Sports Gaming Systems shall be incapable of authorizing payment on a Voided or Cancelled Wager or a Wager that has been previously paid, except in accordance with these Rules.

(7) Sports Gaming Systems shall be designed to prevent an individual, group of individuals or entity from tampering with or interfering with the operation of Interactive Sports Gaming or Sports Gaming Systems.

(8) Sports Gaming Systems shall be configured to terminate a Player’s session, and/or require reauthentication, after a prescribed period of inactivity by the Player not to exceed thirty (30) minutes.

(9) Sports Gaming Systems shall be designed to reasonably ensure the integrity and confidentiality of communications and ensure the proper identification of the sender and receiver of communications. If communications are performed across a public or third-party network, the system shall either encrypt the data packets or utilize a secure communications protocol to ensure the integrity and confidentiality of the transmission.

(10) Confidential and/or sensitive electronic data shall be encrypted while both at rest and in transit using the current standards and methodologies set forth by the National Institute of Standards and Technology (NIST), International Organization for Standardization, and the International Electrotechnical Commission (ISO/IEC), or equivalent standard as approved by the Council.

Confidential and/or sensitive electronic data may include, but is not limited to, Player PII and Player banking information.

(11) User authentication to the Sports Gaming Systems and other system components shall be configured consistent with the current standards and methodologies set forth by the NIST, ISO/IEC, or equivalent standard as approved by the Council.

(12) Sports Gaming Systems shall monitor for and Immediately Report to the Licensee and the Council any malfunction or security incident that adversely affects the integrity of critical data or system functionality.

(13) A system event log or series of reports/logs for operating systems (including the database layer and network layer) and applications must be configured to track at least the following events:

(a) Failed login attempts;

(b) Changes to live data files occurring outside of normal program and operating system execution;

(d) Audit trail of information changed by administrator accounts;

(e) Changes to date/time on master time server;

(f) Significant periods of unavailability of the Sports Gaming System or any critical component of the Sports Gaming System; and (g) Other significant events.

(14) Sports Gaming Systems shall record and generate daily reports upon request from the Council on the following:

(a) Wagers exceeding $10,000;

(b) Futures Wagers;

(c) Sports Gaming Account activity, including Sports Gaming Account number, transaction, and transaction amount. The report must include deposit amounts, withdrawal amounts, winnings, and Wagers made; and (d) Changes in odds, Wager cutoff times, Event data, or Sporting Event results.

(15) Sports Gaming Account management shall be configured in a manner to ensure the confidentiality and integrity of the Player PII and to protect the Sports Gaming Account from unauthorized use. The following controls surrounding Sports Gaming Accounts must be present at a minimum:

(a) Once a Sports Gaming Account is created, a secure personal identification for the Player authorized to use the Sports Gaming Account shall be established that is reasonably designed to prevent the unauthorized access to, or use of, the Sports Gaming Account by any individual other than the Player for whom the Sports Gaming Account is established;

(b) Controls shall be in place to ensure the strength of Player’s passwords;

(d) Player’s Sports Gaming Account shall be Immediately suspended, and Player’s identification shall be Immediately re-verified upon reasonable suspicion that the Player’s identification has been compromised;

(e) Player’s Sports Gaming Account shall be disabled after three failed log-in attempts;

(f) Multi-Factor Authentication shall be required before allowing a Player to reset the Sports Gaming Account password and recover a disabled Sports Gaming Account;

(g) An Operator shall either 1. Require Multi-Factor Authentication before allowing a Player to log in to his or her Sports Gaming Account, unless the Player’s session has not ended or exceeded the prescribed period of inactivity configured in Rule 1350-03-.12(8); or 2. Require Multi-Factor Authentication before allowing a Player to:

(i) Log in to his or her Sports Gaming Account, but after the Player has completed a successful Multi-Factor Authentication for a specific device, the Operator is not required to perform another Multi-Factor Authentication on that device for login for a period of 14 days;

(ii) Update Player PII;

(iii) Withdraw funds; and (iv) Add a debit card;

(h) Players shall be allowed to perform any transaction other than Wagering at all times when logged in regardless of their geographical location; and (i) A mechanism shall be in place to suspend a Player’s Sports Gaming Account in the event that there is suspicion that the Sports Gaming Account has been compromised or used to commit fraud or other illegal activity.

(16) Licensees shall have policies and procedures for all changes to the Sports Gaming System and its related components. Documentation must be created and maintained for all changes to the production environment of the Sports Gaming System and its related components.

(17) The Licensee shall have a documented process for performing and restoring Sports Gaming System back-ups. All backup media must be stored at a secure location offsite from the Licensee’s primary data storage. Periodic testing of backup media must be performed to ensure that the Sports Gaming System can be restored in the event of a failure.

(18) Interactive Sports Gaming may only be conducted over the Internet or through the use of Mobile Applications or other digital platforms. The Internal Control Standards for the Sports Gaming Systems shall apply to all websites and applications used to provide this functionality.

(19) Additional system specifications and Sports Gaming Systems logging requirements may be specified by the Council through the issuance of technical bulletins in the case of exigent circumstances.

(20) Each Licensee shall Immediately Report to the Council any known violations or incidents of non-compliance with any part of this chapter.

History

Authority: T.C.A. §§ 4-49-102, 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-122, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.

Tenn. Comp. R. & Regs. 1350-03-.13 INFORMATION SYSTEM AUDIT REQUIREMENTS

A Sports Gaming System shall, at least once every twenty-four (24) hours, perform a self-authentication process on all software used to offer, record, and process Wagers to ensure there have been no unauthorized modifications. In the event of an authentication failure, at a minimum, the Sports Gaming System shall Immediately Notify the Licensee’s information systems officer, or designee. The Licensee’s information systems officer, or designee, shall then Immediately Notify the Council of an authentication failure. The results of all self-authentication attempts shall be recorded by the Sports Gaming System and maintained for a period of not less than ninety (90) days.

History

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-115, and 4-49-125.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed April 1, 2025; effective June 30, 2025.

Chapter 1350-04 Access to Public Records of the Sports Wagering Advisory Council

Tenn. Comp. R. & Regs. 1350-04-.01 PURPOSE AND SCOPE – ACCESS TO PUBLIC RECORDS OF THE SPORTS

WAGERING COUNCIL.

(1) Pursuant to T.C.A. § 10-7-503(g)(2), the Sports Wagering Council hereby adopts the following Public Records Rules to provide economical and efficient access to public records held by the Sports Wagering Council as provided under the Tennessee Public Records Act (“TPRA”) in Tenn. Code Ann. §§ 10-7-501, et seq.

(2) In accordance with these Rules, staff of the Sports Wagering Council shall timely and efficiently provide access and assistance to Persons requesting to view or receive copies of public records. No provision of these Rules shall be used to hinder access to open public records.

However, the integrity and organization of public records, as well as the efficient and safe operation of the Sports Wagering Council shall be protected as provided by current law.

Concerns about these Rules should be addressed to the Public Records Request Coordinator for the Sports Wagering Council (“PRRC”) or to the Tennessee Office of Open Records Counsel (“OORC”).

History

Authority: T.C.A. §§ 4-49-102, 4-49-106, 10-7-501, et seq., and 10-7-503.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.02 DEFINITIONS

(1) “Public Records” shall mean all documents, papers, letters, maps, books, photographs, microfilms, electronic data processing files and output, films, sound recordings, or other material, regardless of physical form or characteristics, made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency.

(2) “Public Records Request Coordinator” or “PRRC” shall mean the individual, or individuals, who has, or have, the responsibility to ensure public record requests are routed to the appropriate records custodian and are fulfilled in accordance with the TPRA. The contact information for the PRRC is:

Sports Wagering Council Attn: General Counsel 312 Rosa L. Parks Ave., 8th Floor Nashville, TN 37243 (615) 770-3947 Email: SWAC.PRRC@tn.gov.

(3) “Records Custodian” shall mean the office, official or employee lawfully responsible for the direct custody and care of a public record. The records custodian is not necessarily the original preparer or receiver of the record.

(4) “Requestor” shall mean a citizen of the State of Tennessee seeking access to a public record, whether for inspection or duplication.

History

Authority: T.C.A. §§ 4-49-106, 10-7-501, et seq., and 10-7-503.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-04-.03 HOURS OF INSPECTION

All public records held by the Sports Wagering Council, except for those deemed confidential by the TPRA and the Rules of the Council or other applicable law, shall be open for personal inspection by any citizen of the State of Tennessee at all times in which the Sports Wagering Council is otherwise open for business.

Such hours of operation are generally Mondays through Fridays, 8:00 AM through 4:30 PM Central Standard Time (CST), subject to Tennessee State Government Holiday Office Closures and/or other emergency or unanticipated office closures.

History

Authority: T.C.A. §§ 10-7-501, et seq.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.04 REQUESTING ACCESS TO PUBLIC RECORDS

(1) Public record requests, whether written or oral, shall be made to the PRRC in order to ensure public record requests are routed to the appropriate records custodian and fulfilled in a timely manner.

(2) Public record requests must include the following information clearly and concisely expressed:

(a) Name and Tennessee contact information (in order to provide any communication required under the TPRA);

(b) Detailed description of the records being requested, including type, timeframe, subject matter or key words, and any other information identifying the records;

(c) Statement whether the request is for inspection or receipt of copies; and (d) Delivery preference if requesting copies.

(3) Written requests for records must be directed to the PRRC and submitted on the prescribed form designated by the Sports Wagering Council. Written requests may be submitted by mail or by electronic mail to SWAC.PRRC@tn.gov.

(4) Requests for inspection only need not be made in writing and may be submitted orally in person or by phone to the PRRC. The PRRC shall request a mailing or email address from the requestor to be used for providing any written communication required under the TPRA.

(5) Requests for copies, or requests for inspection and copies, must be made in writing on the prescribed form designated by the Sports Wagering Council and sent to the PRRC either by mail or electronic mail to SWAC.PRRC@tn.gov.

(6) Requests not made in the appropriate manner or not directed to the PRRC as provided herein will not be accepted. Requests made on social media or as comments on websites operated by the Sports Wagering Council will not be accepted.

(7) Proof of Tennessee citizenship, by presentation of a valid Tennessee driver’s license (or alternative acceptable form of ID evidencing the requestor’s residency in Tennessee), is required as a condition to inspect or receive copies of public records and must be presented with the request.

History

Authority: T.C.A. §§ 10-7-501, et seq., and 10-7-503.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Amendments filed September 15, 2023; effective December 14, 2023. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.05 RESPONDING TO PUBLIC RECORDS REQUESTS

(1) The PRRC shall review public record requests and make an initial determination of the following:

(a) Proof of Tennessee citizenship;

(b) Sufficiency of description of the records to allow specific identification;

(c) Whether the Sports Wagering Council is the custodian of the records; and (d) Whether there is an exemption to access.

(2) The PRRC shall acknowledge the receipt of all requests received from a requestor identifying as a Tennessee citizen and take any of the following appropriate actions:

(a) Advise the requestor of these Rules, including:

The requirement for proof of Tennessee citizenship;
Form(s) required for copies;
Fees; and 4. Aggregation of multiple or frequent requests.

(b) If appropriate, deny the request in writing, providing the appropriate grounds for denial, including but not limited to the following:

The requestor is not, or has not presented evidence of being, a Tennessee citizen;
The request lacks specificity;
An exemption makes the record not subject to disclosure under the TPRA (the PRRC shall provide the exemption in the written denial);
The Sports Wagering Council is not the custodian of the requested records; and/or, 5. The records do not exist.

(d) Forward the records request to the appropriate records custodian within the Sports Wagering Council; or (e) If requested records are in the custody of a different governmental entity, and the PRRC knows the correct governmental entity, the PRRC may advise the requestor of the correct governmental entity and PRRC for that entity, if known.

(3) Upon receiving a public records request, a records custodian shall make requested public records available in accordance with applicable law.

(4) If not practicable to provide requested records, the PRRC or the applicable records custodian shall, within seven (7) business days from the PRRC’s receipt of the request, respond to the requestor with a Public Records Request Response form or email with equivalent information.

(5) If a public record request is denied, the PRRC shall deny the request in writing, providing the

basis for the denial.

(6) If a records custodian or PRRC reasonably determines production of records should be segmented because the records request is for a large volume of records, or additional time is necessary to prepare the records for access, the records custodian shall notify the requestor that production of the records will be in segments and that a records production schedule will be provided as expeditiously as practicable. If appropriate, the records custodian or PRRC should contact the requestor to inquire whether the request can be narrowed.

(7) If, within a time reasonably close to the original request, a records custodian or the PRRC discovers records responsive to a records request were omitted, the records custodian or PRRC shall contact the requestor concerning the omission and produce the records as quickly as practicable.

(8) If a record contains confidential information or information that is not open for public inspection, the records custodian or PRRC shall prepare a redacted copy prior to providing access. The PRRC shall consult with counsel as necessary to ensure appropriate redactions are made.

History

Authority: T.C.A. §§ 10-7-501, et seq.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.06 INSPECTION OF RECORDS

(1) There shall be no charge for inspection of open public records.

(2) The location for inspection of records within the offices of the Sports Wagering Council shall be determined either by the PRRC or the records custodian and shall occur during times in which the Sports Wagering Council is open for business.

(3) Under reasonable circumstances, the PRRC or a records custodian may require an appointment for inspection or may require inspection of records at an alternate location.

History

Authority: T.C.A. §§ 10-7-501, et seq.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.07 COPIES OF RECORDS

(1) A records custodian shall promptly respond to a public record request for copies in the most economic and efficient manner practicable.

(2) Copies will be available for pickup at a location specified by the records custodian or PRRC.

Payment will be required prior to production of the records, or prior to production of the records via email to the requestor.

(3) Upon payment for postage and for production costs, copies will be delivered to the requestor’s mailing address by the United States Postal Service if requested.

(4) The PRRC may allow a requestor to make copies of inspected records with personal equipment at the inspection location, upon prior approval by the PRRC and payment in advance of any costs and fees incurred by the Sports Wagering Council in preparing the records to be copied.

A requestor will not be allowed to connect any personal equipment to a Sports Wagering Council end-point device or the network and will not be allowed to jeopardize the integrity or organization of the records.

History

Authority: T.C.A. §§ 10-7-501, et seq.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Tenn. Comp. R. & Regs. 1350-04-.08 FEES AND PROCEDURES FOR BILLING AND PAYMENT

(1) Records custodians shall provide requestors with an itemized estimate of the charges prior to producing copies of records and may require pre-payment of such charges before producing requested records.

(2) When fees for copies and labor do not exceed $10.00 per requestor per calendar year, the fees may be waived.

(3) Unless otherwise provided by law, fees and charges for copies are as follows:

(a) $0.15 per page for letter- and legal-size black and white copies.

(b) $0.50 per page for letter- and legal-size color copies.

(d) If an outside vendor is used, the actual costs assessed by the vendor.

(4) If requests for copies are made following a request to inspect, employee labor expense will be included in the calculation of charges on a pro-rated basis.

(5) Payment is to be made in cash or check payable to the Sports Wagering Council and delivered to the PRRC.

(6) Payment in advance will be required when estimated costs exceed $10.00.

(7) Records requests in excess of four requests per month from either the same individual or a group of individuals deemed to be acting in concert, as determined by the PRRC, may be aggregated for computation of expenses.

History

Authority: T.C.A. §§ 10-7-501, et seq.
Administrative History: Emergency rules filed December 22, 2021 to become effective January 1, 2022; effective through June 30, 2022. New rules filed March 22, 2022; effective June 20, 2022. Administrative corrections made to council name on December 14, 2023, pursuant to Public Chapter 450 of 2023.

Chapter 1350-05 Rules Related to the Fantasy Sports Act (Transferred from 1360-03-05)

Tenn. Comp. R. & Regs. 1350-05-.01 PURPOSE AND SCOPE

These rules are promulgated for the purpose of implementing the Fantasy Sports Act and for providing additional guidance to the fantasy sports industry and Tennessee consumers with regard to the operation of fantasy sports contests within the State of Tennessee and/or for the use of Tennessee citizens. These rules are also promulgated for the purpose of establishing appropriate fees for the application, licensure, and civil penalty components of the Fantasy Sports Act. These rules shall apply to fantasy sports contests only when an entry fee is paid by a fantasy sports player for participation in a fantasy sports contest.

History

Authority: T.C.A. § 4-49-201.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.02 DEFINITIONS

As used in these rules, the following terms are defined as follows:

(1) “Adjusted Revenue” means the amount equal to the total entry fees collected from all players (regardless of the players’ location) entering the fantasy sports contest less winnings paid to players in the contest, for the Fantasy sports operator’s most recent fiscal year.

(2) “Attorney General and Reporter” or “Attorney General” means the Attorney General and Reporter of the State of Tennessee or his or her authorized designee.

(3) “Auto draft” means athlete selection offered by a Fantasy sports operator that does not involve any input or control by a player.

(4) “Beginning player” means any player who has entered fewer than fifty-one (51) contests offered by a single Fantasy sports operator, and who has not qualified as a Highly Experienced Player.

(5) “Clearly and conspicuously” means:

(a) To disclose in such a way that the disclosure is made through the same means through which the communication is presented.

(b) Requires that if the communication is visual, the disclosure is placed in close proximity to relevant claims, expressed in clear and plain language and syntax, and the size, contrast, location, and other characteristics stand out from other visual elements so that the disclosure is prominently displayed and unavoidable.

(d) Requires that if the communication is audio, the disclosure is presented at adequate volume and cadence, and (e) Requires that the disclosure is made before the consumer makes a decision to accept an offer.

(6) “Daily fantasy sports contest” is any fantasy sports contest other than a season-long fantasy sports contest, as defined herein.

(7) “Entry fee” means any valuable consideration including, but not limited to, cash or a cash equivalent, that a Fantasy sports operator requires in order to participate in a fantasy sports contest.

(8) “Executive Director” means the individual hired by the Council to direct and oversee the dayto-day operations and management of the Sports Wagering Council, including overseeing enforcement of compliance with the Sports Gaming Act, the Fantasy Sports Act, and the Rules of the Council.

(9) “Fantasy sports contest”

(a) Means:

An online simulated game in which players are subject to an entry fee to assemble imaginary teams of athletes;
Players are offered an award or prize made known to the players in advance of the online simulated game; and 3. The winning outcome of which reflects in part the relative knowledge and skill of the participants and is determined predominantly by the accumulated statistical results of the performance or finishing position of athletes in underlying amateur or professional competitions; and (b) Does not include:
A contest in which the operator allows the players to auto draft athletes or to choose between pre-selected teams of athletes;
A contest that offers or awards a prize to the winner of, or athletes in, the underlying competition itself; and 3. A contest where the winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of teams or solely on any single performance of an athlete or participant in any single actual event.

(10) “Fantasy sports contest platform” means any online method by which access to a fantasy sports contest is provided, including, but not limited to a website, smart phone application, or other application providing access to a fantasy sports contest.

(11) “Fantasy sports operator” means a person that offers fantasy sports contests through an online digital platform.

(12) “Fantasy sports operator contractor” means any person or entity who works pursuant to an independent contract with a Fantasy sports operator and who has access to nonpublic portions of the Fantasy sports operator’s office, the Fantasy sports operator’s nonpublic computer network, or the Fantasy sports operator's proprietary information that may affect how the fantasy sports contest is played.

(13) “Highly experienced player” means a person who has either:

(a) Entered more than five hundred (500) contests offered by a single Fantasy sports operator; or (b) Won more than five (5) fantasy sports prizes where the total value of the prizes is two thousand five hundred dollars ($2,500) or more.

(14) “Knowingly” means to have known or should have known.

(15) “Minor” means any person under eighteen (18) years of age.

(16) “Person” has the same meaning as defined in T.C.A. § 47-18-103.

(17) “Player” means a person who participates in a fantasy sports contest offered by a Fantasy sports operator.

(18) “Private contest” means a fantasy sports contest established among players known to each other and the terms and any prize of which are not established by a Fantasy sports operator.

(19) “Prize” means a prize, award, incentive, promotion, or anything of value, including, but not limited to, money, contest credits, merchandise, or admission to another fantasy sports contest.

(20) “Resident percentage” means, for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent (0.1%), of the total entry fees collected from Tennessee consumers divided by the total entry fees collected from all players, regardless of the players’ location, of the fantasy sports contest.

(21) “Script” means a list of commands that a fantasy-sports-related computer program can execute and that are created by players, or by third parties for the use of players, to automate processes on a fantasy sports contest platform.

(22) “Season-long fantasy sports contest” means a fantasy sports contest offered by a Fantasy sports operator that is conducted over an entire sports season.

(23) “Sports Wagering Council” or “Council” means the council created by T.C.A. § 4-49-105(a)(1) that is responsible for overseeing compliance with the Sports Gaming Act, the Fantasy Sports Act, and the Rules of the Council.

(24) “Tennessee consumer” means a consumer located in this state at the time the person enters a fantasy sports contest.

History

Authority: T.C.A. §§ 4-49-105, 4-49-201, 4-49-202, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.03 INITIAL APPLICATION FOR LICENSURE

(1) Application information. Any person seeking to be a licensed Fantasy sports operator shall submit an application to the Sports Wagering Council, using a form available from the Sports Wagering Council, with the following information:

(a) Name. The name of the applicant.

(b) Primary contact. The designated contact person for the applicant, a telephone number, address, and email address for that contact.

(d) Disclosure of ownership. To the extent the information is within the control of the Fantasy sports operator, a complete disclosure of the true ownership of the Fantasy sports operator as follows:

For limited liability companies (hereinafter, “LLC”), including professional LLCs, provide the full name, address, and telephone number of each member of the LLC having an ownership interest of five percent (5%) or more of the LLC. If the member is not a natural person, disclose the true ownership of the member (and successive levels of ownership, if necessary) until a natural person or another corporate entity is disclosed. If another corporate entity is disclosed, provide a complete disclosure of that corporate entity’s ownership in accordance with the specific rules for that entity contained herein (and successive levels of ownership, if necessary).
For general, limited, or limited liability partnerships, provide the full name, address, and telephone number of each partner having an ownership interest of five percent (5%) or more of the partnership. If the partner is not a natural person, disclose the true ownership of the partner (and successive levels of ownership, if necessary) until a natural person, or another corporate entity, is disclosed. If another corporate entity is disclosed, provide a complete disclosure of that corporate entity’s ownership in accordance with the specific rules for that entity contained herein (and successive levels of ownership, if necessary).
For a corporation, provide the full name, address, and telephone number of any natural person or entity having an ownership interest of five percent (5%) or more of the outstanding shares of the corporation. If a corporate entity is disclosed, provide a complete disclosure of that corporate entity’s ownership in accordance with the specific rules for that entity contained herein (and successive levels of ownership, if necessary).
The intent of this rule is to require, to the fullest extent that the individual or corporate structure of an applicant allows, disclosure of names of individual natural persons who have a significant ownership interest in a Fantasy sports operator.

(e) Criminal Record. The applicant’s criminal record, if any, as specified below:

Information regarding the criminal record, if any, of the following individuals, if those individuals are involved in the day-to-day management of fantasy sports contests and/or operations, and as applicable to the entity’s corporate structure:

(i) Each partner of a partnership holding five percent (5%) or more of the partnership;

(ii) Each member of a limited liability company holding five percent (5%) or more of the LLC;

(iii) Each director and officer of a non-publicly held corporation;

(iv) Each director and officer of a publicly held corporation, and/or operations; and (v) Each stockholder of five percent (5%) or more of a corporation.

An applicant, and the individuals identified in subpart (e)1. above, shall have a duty to disclose on the application whether they have been convicted of a crime (other than traffic violations and convictions that have been expunged), and if so, the nature of the crime, the date, place of the conviction, and the legal disposition of the case.
An applicant, and the individuals identified in subpart (e)1. above, shall obtain a criminal background check (an “Identity History Summary”) from the Federal Bureau of Investigation. The applicant must submit, with its application, either the completed Identity History Summary, or documentation showing that the Identity

History Summary was requested prior to submitting the application.

Evidence of an applicant’s (including any of the individuals identified in subpart (e)1. above) conviction or plea of guilty or nolo contendere for a felony, or a misdemeanor involving fraud, dishonesty, breach of trust, gambling, or moral turpitude, within the ten (10) years prior to the date of application shall be grounds for denial of an application.

(f) Interest in other Fantasy sports operators. Disclosure of any ownership interest held by (as applicable in accordance with the corporate structure of the entity) a policy making manager, a partner of a partnership, a member of a limited liability company, a director or officer of a corporation, a stockholder of five percent (5%) or more of a corporation, in any Fantasy sports operator, or any entity previously or currently licensed by another entity that licenses Fantasy sports operators or similar entities.

(g) Description of operations. A description and address of any physical facility operated by the Fantasy sports operator, if any, in this state, the number of employees, and the nature of the facility's business.

(h) Information regarding player deposits.

The applicant’s policies and procedures for limiting each player to one continuous and active account.
The applicant’s policies and procedures for limiting individual player deposits to no more than two thousand five hundred dollars ($2,500) per month.
The applicant’s policies and procedures for temporarily or permanently increasing a player’s deposit limit, at the request of the player, to an amount above two thousand five hundred dollars ($2,500) per month.

(i) Information and documentation regarding the reserve, segregated accounts, or Escrow Fund Account established pursuant to Rule 1350-05-.08(2).

(j) Information regarding verification of identity. A copy of the policies and procedures adopted to verify the identity of players seeking to establish accounts.

(k) Confirmation of tax clearance. A certificate of tax clearance issued by the Commissioner of the Tennessee Department of Revenue which states that the applicant is current on all taxes, fees, and penalties to the satisfaction of the Commissioner; or a statement that the applicant has no current obligation to the Commissioner because it is a newly registered entity in Tennessee.

(l) Confirmation of registration with the Division of Business and Charitable Organizations.

A statement that the applicant is registered with the Secretary of State’s Division of Business and Charitable Organizations, and the applicant’s control number issued by the Division of Business and Charitable Organizations.

(m) Financial information. The Fantasy sports operator shall provide the following initial financial information:

The total amount of adjusted revenue earned by the Fantasy sports operator for the prior fiscal year.
A calculation of the resident percentage for the prior fiscal year.
The total amount of all winnings earned by fantasy sports players (including non- Tennessee consumers) for the prior fiscal year.
Audited financial statements prepared in accordance with the attestation standards established by the American Institute of Certified Public Accountants for the most recent completed fiscal year and audited or unaudited financial statements for the most recent completed fiscal quarter.
The Sports Wagering Council may inquire regarding additional financial information, or seek additional financial documentation, within his or her discretion.

(n) Information and documents concerning operational compliance.

The applicant’s policies and procedures related to the prevention of minor participation in fantasy sports contests.
The applicant’s policies and procedures related to advertisements, including the applicant’s policies and procedures related to accurate representations concerning chances of winning and the number of persons winning.
The applicant’s policies and procedures related to the applicant’s compliance with the Federal Trade Commission, Guides Concerning Use of Endorsements and Testimonials in Advertising, compiled in 16 CFR § 255.
The applicant’s policies and procedures relating to assistance available to problem gamblers.
The applicant’s policies and procedures relating to implementation and enforcement of self-limitations and self-exclusions requested by players.
The applicant’s policies and procedures related to protection of player deposits, including policies and procedures related to the following:

(i) Prevention of unauthorized withdrawals from player accounts by Fantasy sports operators or others;

(ii) Reporting and responding to complaints by a player regarding the handling of a player’s account; and (iii) Closure of player accounts.

The applicant’s policies and procedures related to account monitoring to prevent misuse of accounts, including policies and procedures related to the following:

(i) Detection and prevention of misuse of proxy services;

(ii) Location verification;

(iii) Prevention of the use of unauthorized scripts; and (iv) Prevention of the use of pre-selected teams.

The applicant’s policies and procedures related to the prevention of unauthorized play by the following individuals:

(i) Fantasy sports operator employees, Fantasy sports operator contractors, and any spouse, children, or parents of any sports operator employee or contractor.

(ii) Professional or amateur athletes whose individual statistics or performance may be used to determine any part of the outcome of a fantasy sports contest; and (iii) Any sports agent, team employee, referee, or league official associated with any athletic competition that is the subject of fantasy sports contests.

The applicant’s policies and procedures relating to fantasy sports contests for beginning players, including policies and procedures related to the following:

(i) Explanation of contest play;

(ii) Identification of highly experienced players, including symbols or other identification used;

(iii) Recommending beginning player only contests and low cost private contests;

(iv) Percentage of contests open only to beginning players and that exclude highly experienced players;

(v) Prevention of access by highly experienced players to beginner player contests directly or through a proxy; and (vi) Suspension of accounts of highly experienced players who participate in contests for beginning players only.

The applicant’s policies and procedures relating to the locking of fantasy sports contests.
The applicant’s policies and procedures relating to the restriction of the number of entries per fantasy sports contest per player.

(2) The application shall be signed by an officer or director, member, or partner, as applicable in accordance with the Fantasy sports operator’s corporate structure.

(3) The applicant shall submit a nonrefundable application fee in the form of a check made payable to the Sports Wagering Council in the amount of three hundred dollars ($300). Review of the applicant’s application will not begin until receipt of the application fee.

(4) The application, supporting documentation, and fee may be hand delivered or mailed to the Office of the Sports Wagering Council, Attn: Director; at 312 Rosa L. Parks Blvd., 8th Floor, Nashville, Tennessee 37243.

History

Authority: T.C.A. §§ 4-49-201 and 4-49-212(a).
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.04 RENEWAL APPLICATION FOR LICENSURE

(1) Any person seeking to renew an application to be a licensed Fantasy sports operator shall submit a renewal application, in accordance with T.C.A. § 4-49-208(d) and Rule 1350-05-.05, in a form available from the Sports Wagering Council, no later than ninety (90) days prior to the expiration of the prior year’s license, containing the following information:

(a) All information required in an initial application, as set forth in Rule 1350-05-.03 except for the following:

Identity History Summary from the Federal Bureau of Investigation for individuals who have previously submitted criminal background reports as part of the application process and who have not self-disclosed any new criminal history; and 2. Financial statements required by Rule 1350-05-.03(1)(m)4.

(2) The application shall be signed by an officer or director, member, partner, or individual otherwise authorized by the organization, as applicable in accordance with the Fantasy sports operator’s corporate structure.

(3) The applicant shall submit a nonrefundable renewal application fee in the form of a check in the amount of three hundred dollars ($300) made payable to the Sports Wagering Council.

Review of the applicant’s renewal application will not begin until receipt of the application fee.

(4) The renewal application, supporting documentation and fee may be hand delivered or mailed to the Office of the Sports Wagering Council, Attn: Director, at 312 Rosa L. Parks Blvd., 8th Floor, Nashville, Tennessee 37243.

History

Authority: T.C.A. §§ 4-49-201, 4-49-208, 4-49-212, and 4-49-212(a).
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.05 APPROVAL OF LICENSURE

(1) The Sports Wagering Council shall review each license application and renewal application received and either approve or deny the application within ninety (90) days of receipt of a fully completed application, as determined by the Sports Wagering Council. The Sports Wagering Council has the discretion to approve, deny, or condition the application based on the adequacy of the information submitted.

(2) Each license shall expire on the last day of the twelfth month following its issuance and shall become invalid on that date unless renewed.

(3) If the license, or renewal license, is granted, the licensee must remit payment in accordance with the following schedule, within ten (10) days of receipt of the notification letter approving the application or renewal application.

(a) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $2,000,000.......................................... $75,000.

(b) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $1,000,000 but less than $2,000,000........................................................................................................ $50,000.

(c) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $500,000 but less than $1,000,000........................................................................................... $22,500.

(d) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $100,000 but less than $500,000............................................................................................. $10,000.

(e) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $50,000 but less than $100,000.............................................................................................. $5,000.

(f) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, equal to or greater than $10,000 but less than $50,000................................................................................................ $2,500.

(g) For Fantasy sports operators with annual adjusted revenue, multiplied by the resident percentage, less than $10,000.....................................................................$1,000.

(4) Payments will be accepted in the form of a check made payable to the Sports Wagering Council.

(5) License fees are nonrefundable.

History

Authority: T.C.A. §§ 4-49-201, 4-49-208, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.06 REGISTRATION OF PLAYERS/KNOW YOUR CUSTOMER REQUIREMENTS

(1) Registration. Before allowing a player to create an account, including for free play, a Fantasy sports operator must collect:

(a) The name of the individual; and (b) The individual’s date of birth showing the individual is 18 years of age or older.

(2) Deposits and withdrawals. No player shall be permitted to deposit or withdraw any funds until the individual has conducted the Identity Verification required by Rule 1350-05-.06(4) and provided the following information:

(a) The physical address where the individual resides; and (b) Any other information required by the Fantasy sports operator to independently verify the identity of the player making a deposit or withdrawal.

(3) Single account.

(a) A Fantasy sports operator shall limit each player to one active and continuously used account in accordance with T.C.A. § 4-49-203(b)(7)(C). Fantasy sports operators shall implement rules and clearly and conspicuously publish procedures to terminate all accounts of any player that establishes or seeks to establish more than one username or more than one account, whether directly or by use of another person as a proxy.

(b) The Fantasy sports operator may allow a fantasy sports player that establishes or seeks to establish more than one username or more than one account, for one time only, to retain one account provided that the Fantasy sports operator investigates and makes a good faith determination that the fantasy sports player’s conduct was not intended to obtain a competitive advantage. A player who has established more than one username or account will not be entitled to retain any winnings earned from any account during the time period that more than one username or account is active.

(c) If a fantasy sports player is allowed to retain one account in accordance with subdivision (b) above and subsequently establishes or attempts to establish another account, the Fantasy sports operator, upon discovery of the duplicative account or attempt, must terminate the player’s account and prohibit that player from establishing or seeking to establish a new account for a period of two (2) years.

(4) Identity verification. A Fantasy sports operator shall use commercially and technologically reasonable means to independently verify the identity of the individual making a deposit or a withdrawal. Third-party entities may be used to verify the identity of a player.

(a) If a Fantasy sports operator determines that the information provided by a player to make a deposit or process a withdrawal is inaccurate or incapable of verification, or violates its policies and procedures, the Fantasy sports operator shall, within ten days, require the submission of additional information that can be used to verify the identity of the player.

(b) If such information is not provided or does not result in verification of the player’s identity, the Fantasy sports operator shall:

Immediately suspend the player’s account and not allow the player to participate in any further fantasy sports contests;
Retain any winnings attributable to the player;
Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and 4. Deactivate the account.

(c) Prior to verification of the player’s identity in accordance with this rule, the player shall not be permitted to make deposits or withdraw funds from his or her account.

(5) Username and password. A player must be provided with (or create) an electronic identifier such as a digital certificate or an account description and a password to log into an account on a fantasy sports contest platform.

(a) The Fantasy sports operators must allow players to change their passwords and should remind them to do so on a regular basis.

(b) Where a player has forgotten his or her password, the Fantasy sports operator must provide a secure process for the reauthentication of the player and the retrieval and/or resetting of the password. Any and all processes for dealing with lost player user IDs or passwords must be clearly described to the player and sufficiently secure.

(c) When a player logs into the fantasy sports platform, either the most recent time and date of login must be displayed, or the player must be able to access information listing the time and date of any contest entries and any withdrawals or deposits that have taken place in his or her account the last 30 days.

(d) Each fantasy sports contest must have a unique identifier assigned by the Fantasy sports operator which distinguishes entries into that contest from entries into other contests.

(6) Minors prohibited. Only players age 18 and over may participate in fantasy sports contests.

(a) A Fantasy sports operator must deny account registration to any person who enters a birthdate which indicates that he or she is a minor.

(b) A Fantasy sports operator shall implement commercially and technologically reasonable procedures to prevent access to fantasy sports contests by minors on its fantasy sports platform, including but not limited to independent verification of age using information obtained from independent sources outside of the player seeking to open an account.

Third-party services may be used to verify the age of a player; and (c) A Fantasy sports operator shall clearly and conspicuously display, on web pages that are accessed prior to registering for a fantasy sports contest, a statement that it is illegal for persons under the age of 18 to engage in fantasy sports contests in Tennessee. This statement must be clearly and conspicuously displayed by the Fantasy sports operator.

(7) Player affirmations. Fantasy sports operators must include the following provisions in any Terms of Service or Terms of Use:

(a) That the information provided to the operator by the individual to register is accurate;

(b) That the individual has been informed, and acknowledges, that as an authorized player he or she is prohibited from allowing any other person access to or use of their fantasy sports player account; and (c) That the individual acknowledges that his or her account activity and winnings may be disclosed to the Sports Wagering Council, the Department of Revenue and any other applicable state or federal entities.

History

Authority: T.C.A. §§ 4-49-201, 4-49-203, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.07 PLAYER ACCOUNT ACTIVITY

(1) Amount of monthly deposits. No new player shall be permitted to deposit more than two thousand five hundred dollars ($2,500) of cash or a cash equivalent, per month with a Fantasy sports operator unless the player demonstrates that he or she should be entitled to increase his or her monthly deposit limits in accordance with these rules and the published rules of the Fantasy sports operator.

(a) No player shall be granted an increase in his or her deposit limit prior to verification of their identity in accordance with these rules.

(b) No player who is classified as a beginning player shall be allowed to request an increase in their deposit limit.

(c) In order to be eligible for a deposit limit increase, a player must demonstrate, to the Fantasy sports operator’s reasonable satisfaction, that he or she qualifies for an increase under policies and procedures established by the Fantasy sports operator, based on the player’s annual income or net worth.

(d) Fantasy sports operators shall establish and publish reasonable procedures for increasing a player’s deposit limit, but in no circumstances shall such deposit limits be increased unless the player has an annual income of more than $150,000 (or $300,000 jointly with a spouse) or financial net worth greater than $500,000, calculated as follows:

Any individual whose net worth, or joint net worth with that individual’s spouse, exceeds five hundred thousand dollars ($500,000).

(i) For purposes of calculating net worth under this subsection, the individual’s primary residence shall not be included as an asset;

(ii) Indebtedness that is secured by the individual’s primary residence, up to the estimated fair market value of the primary residence at the time of the request for account increase, shall not be included as a liability (except that the amount of such indebtedness outstanding at the time of the request for account increase exceeds the amount outstanding sixty (60) days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) Indebtedness that is secured by the individual’s primary residence in excess of the estimated fair market value of the primary residence at the time of the request for account increase shall be included as a liability.

Any individual who had an individual gross income in excess of one hundred fifty thousand dollars ($150,000) in each of the two (2) most recent years, or joint income with that individual’s spouse in excess of three hundred thousand dollars ($300,000) in each of those years and has a reasonable expectation of reaching the same income level in the current year.

(2) Enforcement of self-exclusion. A Fantasy sports operator must take all reasonable steps to immediately refuse service to or otherwise enact appropriate restrictions that prevent an individual who has set limitations in accordance with T.C.A. § 4-49-205(a)(12) from entering fantasy sports contests. These policies and procedures include, without limitation, the following:

(a) The maintenance of a registry of those individuals who have self-imposed limitations on their account, including the name, address, and account details of individuals who have self-imposed restrictions on their account;

(b) The closing of the player’s account held by the individual who has self-excluded;

(d) Provisions precluding an individual who has self-excluded from being allowed to again engage in fantasy sports contests until a reasonable amount of time of not less than thirty (30) days has passed since the individual self-excluded; and (e) Fantasy sports operators shall take all reasonable steps to prevent any marketing material from being sent to an individual who has self-excluded.

(3) Recordkeeping requirements. The Fantasy sports operator shall maintain the following records, for a period of five (5) years, beginning with the date each player account was created, and make these records available for inspection at the request of the Sports Wagering Council or the Attorney General and Reporter:

(a) The date of each fantasy sports contest played;

(b) The classification of the player, i.e., Beginning or Highly Experienced;

(d) The prize, if any, awarded for each fantasy sports contest played;

(e) All deposits and withdrawals made from each account; and (f) The date and description of any self-imposed limitation taken by any player.

History

Authority: T.C.A. §§ 4-49-201, 4-49-203, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.08 PLAYER FUNDS AND REQUIRED RESERVE

(1) Player funds.

(a) A Fantasy sports operator shall not allow a player to transfer funds from one player account to any other player account through its fantasy sports contest platform.

(b) After a player’s identity has been verified, a player must be allowed to withdraw funds maintained in his or her active account. Such requests must be honored within five (5) business days of the request, unless the Fantasy sports operator believes in good faith that the player engaged in either fraudulent conduct or other conduct that would put the Fantasy sports operator in violation of the law, in which case the Fantasy sports operator may decline to honor the request for withdrawal for a reasonable investigatory period until its investigation is resolved, provided that it gives notice to the player of the nature of the investigation of the account. If an identity-verified player seeks to make a withdrawal from a deactivated or otherwise inactive account, the Fantasy sports operator shall follow its policies and procedures from processing such withdrawal requests in a commercially reasonable time. For purposes of this provision, a request for withdrawal will be considered honored if it is processed by the Fantasy sports operator notwithstanding a delay by a payment processor, credit card issuer, or the custodian of a financial account.

(c) A Fantasy sports operator shall not allow a player’s account to be overdrawn unless caused by payment processing issues outside of the control of the Fantasy sports operator.

(d) A Fantasy sports operator shall neither extend credit to a player nor allow the deposit of funds into an account that is derived from the extension of credit by affiliates or agents of the operator. For purposes of this subsection, credit shall not be deemed to have been extended where, although funds have been deposited into an account, the operator is awaiting actual receipt of such funds in the ordinary course of business.

(2) Protection of player funds and required reserve. Funds held in player accounts and all funds constituting prize funds owed, or that may be owed based on contest participation, to player accounts of Tennessee consumers shall be protected in one of the following ways: (a) the creation and maintenance of a reserve as set forth in Rule 1350-05-.08(2)(a); (b) by deposit in a special purpose segregated account that is maintained and controlled by a properly constituted corporate entity as set forth in Rule 1350-05-.08(2)(b); or (c) by deposit in a qualified escrow account as set forth in Rule 1350-05-.08(2)(c).

(a) Reserve. A Fantasy sports operator may maintain a reserve in the form of cash, cash equivalents, payment processor reserves and receivables, an irrevocable letter of credit, a bond, or a combination thereof to protect player funds.

The amount of the reserve shall be equal to, at a minimum, the sum of all authorized players’ funds held in player accounts of Tennessee consumers for use in fantasy sports contests plus all prize funds that are owed, or that may be owed based on contest participation by Tennessee consumers, until payment is made on the prize.
The reserve agreements must reasonably protect the reserve against claims of the operator’s creditors other than the authorized players for whose benefit and protection the reserve is established, and must provide that:

(i) The reserve is established for the benefit and protection of authorized players to the extent the Fantasy sports operator holds money in player accounts for players.

(ii) The reserve must not be released, in whole or in part, except upon written instruction or approval of the Sports Wagering Council. The reserve must be available within sixty (60) days of the written demand or written instruction.

If the reserve is released to the Sports Wagering Council, he or she may interplead the funds in the Davidson County Chancery Court for distribution to the authorized players for whose protection and benefit the account was established and to other such persons as the court determines are entitled thereto, or shall take such other steps as necessary to affect the proper distribution of the funds, or may do both.

(iii) The Fantasy sports operator may receive income accruing on the reserve, without obtaining permission from the Sports Wagering Council.

(iv) The Fantasy sports operator has no interest in or title to the reserve.

(v) Tennessee law and this section govern the agreements and the operator’s interest in the reserve and income accruing on the reserve.

If the reserve is maintained in the form of cash, cash equivalent, or an irrevocable letter of credit, it must be held or issued by a federally insured financial institution.

If the reserve is maintained in the form of a bond, it must be written by a bona fide insurance carrier. Reserves in the form of cash, cash equivalent, and irrevocable letter of credit must be established pursuant to a written agreement between the Fantasy sports operator and the financial institution or insurance carrier, but the Fantasy sports operator may engage an intermediary company or agent to deal with the financial institution or insurance carrier, in which event the reserve may be established pursuant to written agreements between the Fantasy sports operator and the intermediary, and the intermediary and the financial institution or insurance carrier.

The proposed reserve arrangement is not effective for purposes of complying with

Rule 1350-05-.08(2) until the Sports Wagering Council’s approval has been obtained.

The reserve arrangement agreements may be amended only with the prior written approval of the Sports Wagering Council.

(b) Special purposes segregated account with a separate corporate entity. A Fantasy sports operator may establish a special purpose segregated account that is maintained and controlled by a properly constituted corporate entity that is not the Fantasy sports operator and whose governing board includes one or more corporate directors who are independent of the Fantasy sports operator and of any corporation related to or controlled by the Fantasy sports operator.

The special purpose segregated account with a separate corporate entity must hold, at a minimum, the sum of all authorized player funds held in player accounts of Tennessee consumers for use in fantasy sports contests, plus all prize funds that are owed or that may be owed, based on contest participation by Tennessee consumers, until payment is made on the prize.
The special purpose segregated account must reasonably protect the funds against claims of the operator’s creditors other than the authorized players for whose benefit and protection the special purpose segregated fund is established, and must provide that:

(i) The segregated account is established for the benefit and protection of authorized players.

(ii) The Fantasy sports operator may receive income accruing on the segregated account. However, the Fantasy sports operator has no interest in or title to the segregated account.

(iii) The funds in the segregated account held for the benefit of Tennessee consumers may only be distributed for the following:

(I) To the Fantasy sports operator for payment to players upon completion of fantasy sports contests or otherwise for the reconciliation of player accounts;

(II) For income earned on the account, to the Fantasy sports operator;

(III) To the Sports Wagering Council in the event that the Fantasy sports operator’s license expires, is surrendered, or is otherwise revoked, the Sports Wagering Council may interplead the funds in the Davidson County Chancery Court for distribution to the authorized players for whose protection and benefit the account was established and to other such persons as the court determines are entitled thereto, or shall take such other steps as necessary to affect the proper distribution of funds, or may do both; or (IV) As authorized in writing in advance by any agreement approved by the Sports Wagering Council.

The corporate entity must require a unanimous vote of all corporate directors to file bankruptcy.
The corporate entity must obtain permission from the Sports Wagering Council prior to filing bankruptcy or entering into receivership.
The corporate entity must have articles of incorporation that prohibit commingling of funds with that of the Fantasy sports operator except as necessary to reconcile the accounts of players with sums owed by those players to the Fantasy sports operator.
The corporate entity must be restricted from incurring debt other than to fantasy sports players pursuant to the rules that govern their accounts for contests.
The corporate entity must be restricted from taking on obligations of the Fantasy sports operator other than obligations to players pursuant to the rules that govern their accounts for contests.
The corporate entity must be prohibited from dissolving, merging or consolidating with another company (other than a special purpose corporate entity established by another Fantasy sports operator that meets the requirements of this section) while there are unsatisfied obligations to fantasy sports players.

(c) A Fantasy sports operator who solely operates season-long fantasy sports contests may establish a qualified escrow fund account for the benefit and protection of players’ funds.

This account will be maintained by a financial institution approved by the Sports Wagering Council.

The Fantasy sports operator must enter into and execute an escrow fund agreement, the form for which is available from the Sports Wagering Council.
The Fantasy sports operator shall deposit in the escrow fund account the sum of all players’ funds held in players’ accounts belonging to Tennessee consumers for use in fantasy sports contests plus all prize funds that are owed, or may be owed, based on contest participation by Tennessee consumers, until payment is made on the prize.
All funds held in the escrow fund account shall be held, invested, and disbursed in accordance with the terms and conditions of the escrow fund agreement upon approval of the Sports Wagering Council.
The escrow fund agreement allows distribution of funds, and any income thereon, under very limited circumstances, and only upon express approval of the Sports Wagering Council for the following:

(i) Distribution to the Fantasy sports operator for payment to players upon completion of fantasy sports contests up to a maximum of four (4) times per year.

(ii) To the Sports Wagering Council in the event that the Fantasy sports operator’s license expires, is surrendered, or is otherwise revoked. The Sports Wagering Council may interplead the funds in the Davidson County Chancery Court for distribution to the authorized players for whose protection and benefit the reserve was established and to other such persons as the court determines are entitled thereto, or shall take such other steps as are necessary to affect the proper distribution of the funds, or may do both.

(iii) To allow for the distribution of income to the Fantasy sports operator.

The escrow fund account shall be available only to those Fantasy sports operators who operate season-long fantasy sports contests that would require access to their escrow fund account for payment of claims no more than four (4) times per year.

(d) Each Fantasy sports operator shall submit to the Sports Wagering Council all information and copies of documents verifying its proposed arrangements pursuant to Rule 1350- 05-.08(2), including copies of the agreement described herein. The Sports Wagering Council shall determine whether the agreements and arrangements satisfy the purposes and requirements of this section, may require appropriate changes, or withhold approval if they do not, and shall notify the Fantasy sports operator of the determination.

(e) In the event that a Fantasy sports operator’s reserve, segregated account or escrow fund is not sufficient to cover, at a minimum, the sum of player funds held in player accounts belonging to Tennessee consumers for use in fantasy sports contests plus all prize funds that are owed or may be owed, based on contest participation by Tennessee consumers, until payment is made on the prize, the operator must, within twenty-four (24) hours, notify the Sports Wagering Council of this fact in writing and must indicate the steps the Fantasy sports operator has taken to remedy the deficiency.

(f) The Sports Wagering Council may require that the reserve, segregated account, or qualified escrow fund, be increased to correct any deficiency or for good cause to protect authorized players.

History

Authority: T.C.A. §§ 4-49-201, 4-49-203, 4-49-205, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.09 ACCOUNT MONITORING TO PREVENT MISUSE

(1) Proxy servers. Fantasy sports operators shall not allow fantasy sports players to use proxy servers for the purpose of misrepresenting their identity or location in order to engage in fantasy sports contests.

(2) Location verification. In order to prevent the unauthorized use of a player’s account, a Fantasy sports operator offering daily fantasy sports contests must use technologically and commercially reasonable measures to reasonably detect the physical location of a player attempting to access his or her account and to monitor for simultaneous logins to a single account from geographically inconsistent locations. A Fantasy sports operator may use a third party to provide these location services.

(a) The geolocation service or application must be able to perform as follows:

Detect location notwithstanding the use of a proxy server;
Detect location when routing through a Virtual Private Network (VPN);
Use GPS data when the player seeks access from a mobile device or network and prohibit users from entering contests or depositing funds if GPS is not turned on;
Check location each time the player attempts to enter a contest or make a deposit; and 5. Utilize a mechanism to alert the Fantasy sports operator if an account is being accessed from geographically inconsistent locations. For example, technology that alerts the Fantasy sports operator that login locations were identified that would be impossible to travel between in the time reported.

(b) The Fantasy sports operator should implement procedures to disable account access if the Fantasy sports operator receives information that an account is being accessed from a location that indicates that there is a likelihood of unauthorized or improper access.

(3) Scripts. A Fantasy sports operator shall not permit the use of unauthorized scripts that give players an unfair advantage over other players in fantasy sports contests and shall use commercially reasonable efforts to monitor for and prevent the use of such scripts.

(a) Authorized scripts shall be programs or scripts that are incorporated as a game feature and shall be clearly and conspicuously published and thereby made available to all players.

(b) A script that is not authorized under section (a) will be deemed to offer an unfair advantage over other players, for reasons including, but not limited to, its potential use to:

Facilitate entry of multiple contests with a single line-up;
Facilitate changes in many line-ups at one time;
Facilitate use of commercial products designed and distributed by third parties to identify advantageous game strategies; or 4. Gather information about the performance of others for the purpose of identifying or entering contests against daily fantasy sports players who are less likely to be successful.

History

Authority: T.C.A. § 4-49-201.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.10 CERTAIN STATE EMPLOYEES PROHIBITED FROM PLAYING

(1) In addition to the individuals excluded from participation in fantasy sports contests pursuant to T.C.A. § 4-49-205(a)(14), employees of the Sports Wagering Council’s office are excluded from participating in any fantasy sports contest involving a prize over five dollars ($5.00) offered by any Fantasy sports operator.

(2) This subsection does not prohibit the Sports Wagering Council from utilizing test accounts solely in order to measure or assess the functionality of the fantasy sports platform or the compliance with applicable laws and regulations; provided that these accounts must be closely monitored by the Sports Wagering Council for any unauthorized use.

(3) This section does not make a Fantasy sports operator responsible for identifying Sports Wagering Council employees participating in its contests.

History

Authority: T.C.A. § 4-49-201.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.11 ANNUAL REPORTING AND AUDITS

(1) Annual Reports. No later than the first day of the fifth month following the close of the Fantasy sports operator’s fiscal year in which the Fantasy sports operator was licensed, the Fantasy sports operator shall submit a report to the Sports Wagering Council containing the following information and documents pertaining to the prior fiscal year, or the portion of the prior fiscal year in which the Fantasy sports operator was licensed:

(a) Tennessee consumer account information. The following information shall be submitted electronically (in either a Microsoft Excel spreadsheet or a Microsoft Access database) contained on a removable media device, e.g., a flash drive.

The total number of Tennessee consumer accounts, broken down by beginning fantasy sports players and highly experienced fantasy sports players;
The number of new accounts established by Tennessee consumers;
The number of accounts closed by Tennessee consumers;
The total amount of entry fees received from Tennessee consumers;
The total amount of prizes awarded to Tennessee consumers;
The number of Tennessee consumers who requested a deposit limit increase;
The number of deposit limit increases granted to Tennessee consumers;
The number of accounts in which a Tennessee consumer was identified as a minor and the action taken as a result;
The number and amount of refunds given to Tennessee consumers;
The number of Tennessee consumers who requested additional limitations on their accounts pursuant to T.C.A. § 4-49-205(a)(11), and the action taken as a result; and 11. The number of Tennessee consumers who requested that their accounts be permanently closed.

(b) The total amount of all winnings earned by fantasy sports players on online platforms supported by the Fantasy sports operators.

(2) Audit Reports. No later than the first day of the seventh month following the close of the Fantasy sports operator’s fiscal year in which the Fantasy sports operator was licensed, the Fantasy sports operator shall submit a full and complete copy of the audit prepared pursuant to T.C.A. § 4-49-204. This audit shall include two components, a financial audit and a compliance audit as described below.

(a) Financial audit. The Fantasy sports operator shall submit a financial audit, prepared by a certified public accountant consistent with the attestation standards established by the American Institute of Certified Public Accountants, of the Fantasy sports operator’s (Rule 1350-05-.11 continued) financial operations and handling of player accounts and funds pursuant to the Fantasy Sports Act.

(b) Compliance audit. The Fantasy sports operator shall submit a performance audit, prepared by a certified public accountant, testing laboratory, or other professional service provider recognized by the Sports Wagering Council, to verify compliance with the operational aspects of the Fantasy Sports Act, including those set forth in T.C.A. § 4-49- 205, and to verify the integrity of the computer operating systems used to operate the fantasy sports contests.

The Sports Wagering Council will post the names of entities approved to conduct compliance audits on its website.
A Fantasy sports operator can seek recognition of an alternative professional service provider for use in completing the compliance audit by submitting a written request to the Sports Wagering Council. The Sports Wagering Council will review the qualifications and experience of the professional service provider and determine whether to recognize that entity as an approved provider.

History

Authority: T.C.A. §§ 4-49-201, 4-49-203, 4-49-204, and 4-49-212.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.12 SCHEDULE OF RANGE OF CIVIL PENALTIES FOR VIOLATIONS OF THE FANTASY

SPORTS ACT.

(1) The following violations may result in civil penalties from a minimum of five thousand dollars ($5,000) to the maximum allowed by law:

(a) Failure to use technologically reasonable means to prevent the use of proxy servers.

(b) Failure to use commercially reasonable means to verify a player’s true identity and/or location.

(d) Failure to report any information required to be reported to the Sports Wagering Council pursuant to the Fantasy Sports Act or these rules.

(e) Failure to clearly and conspicuously disclose rules regarding fantasy sports contests.

(f) Failure to provide information concerning assistance available to problem gamblers, in accordance with T.C.A. § 4-49-205(a)(10).

(g) Failure to implement and/or enforce policies related to a player’s self-imposed limitations as required by T.C.A. § 4-49-205(a)(11) and (12).

(h) Failure to timely submit the annual audit required by T.C.A. § 4-49-204(a)(2).

(i) Any other violation not specifically listed herein.

(2) The following violations may result in civil penalties from a minimum of ten thousand dollars ($10,000) to the maximum allowed by law:

(a) Failure to restrict the number of allowable entries for fantasy sports contests in accordance with T.C.A. § 4-49-205(a)(25).

(b) Knowingly allowing the use of unauthorized scripts, failing to monitor fantasy sports contests to detect the use of unauthorized scripts, and/or failing to follow the provisions of T.C.A. § 4-40-205(a)(21)–(23).

(c) Violations of any of the requirements set forth in T.C.A. § 4-49-205(a)(18)–(20) relating to required disclosures, player activity, and fantasy sports contests involving beginning and experienced players.

(d) Misrepresenting the chances of winning and/or the number of persons winning fantasy sports contests, or failing to comply with the advertising requirements set forth in T.C.A. § 4-49-205(a)(8) and (9).

(3) The following violations may result in civil penalties from a minimum of fifteen thousand dollars ($15,000) to the maximum allowed by law:

(a) Knowingly allowing the use of auto-draft by players or offering pre-selected teams to players;

(b) Failure to limit each player to one (1) account and/or limit player deposits in accordance with T.C.A. § 4-49-203(b)(7) and these rules.

(c) Failure to segregate player funds and/or maintain a player reserve in accordance with T.C.A. § 4-49-205(a)(8) and (26) and these rules.

(d) Failure to implement and enforce the player fund protections set forth in T.C.A. § 4-49- 205(a)(13).

(e) Failure to implement and enforce the minor prevention protections set forth in T.C.A. § 4-49-205(a)(4)–(6).

(4) The following violations may result in civil penalties from a minimum of twenty thousand dollars ($20,000) to the maximum allowed by law:

(a) Knowingly disclosing proprietary and nonpublic information or failing to monitor access to proprietary and nonpublic information in violation of T.C.A. § 4-49-205(a)(15) and/or (17)(B).

(b) Knowingly allowing a prohibited player to participate in a fantasy sports contest in violation of T.C.A. § 4-49-205(a)(14), (16), and/or (17).

(5) The following violations may result in civil penalties from a minimum of twenty-five thousand dollars ($25,000):

(a) Knowingly submitting false or misleading information, whether oral or written, to the Sports Wagering Council.

(b) Directly or indirectly operating or promoting to Tennessee consumers a fantasy sports contest, or promoting a fantasy sports contest from this state to consumers outside of the state, without a license.

(6) These civil penalties may be assessed in addition to suspension, refusal to renew, or revocation of a license issued by the Sports Wagering Council. These civil penalties are cumulative and supplementary to any remedies or actions available to the Office of the Attorney General and Reporter under the Fantasy Sports Act or otherwise provided by law. These civil penalties are cumulative and supplementary to any criminal prosecution pursuant to T.C.A. § 39-17-503.

(7) These civil penalties may be assessed by the Sports Wagering Council for each and every violation of the Fantasy Sports Act. Repeat occurrences of the same violation may result in separate civil penalties for each violation.

History

Authority: T.C.A. § 4-49-201.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.13 ADDITIONAL AUTHORIZED FEES

(1) The Sports Wagering Council is authorized to charge the following additional fees:

(a) Late fee for any required filing............................................................ $25 per day.

(b) Correction of information fee......................................................................... $25.

History

Authority: T.C.A. § 4-49-201.
Administrative History: Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350-05-.14 EXECUTIVE DIRECTOR OF THE SPORTS WAGERING COUNCIL

The Executive Director shall have the following duties with regard to the Fantasy Sports Act, in addition to the duties set forth in the Rules related to the Sports Gaming Act.

(1) To advise the Council of best practices with respect to the Council’s regulatory responsibilities pursuant to the Fantasy Sports Act.

(2) To provide administrative and technical assistance to the Council and to administer all programs and functions that have been required of the Council or as set forth in the Rules of the Council, including this Chapter 1350-05.

(3) To send and receive notices required to be made to the Council or communications made on behalf of the Council, which may be sent to or issued from the Executive Director as agent of the Council.

(4) To approve, condition, or deny applications for initial licensure and renewal of licensure submitted by Fantasy sports operators.

(5) To review, approve or deny the arrangements proposed by Fantasy sports operators pursuant to Rule 1350-05-.08(2) for reserves, special purpose segregated accounts, and qualified escrow accounts.

(6) To review independent audits submitted by Fantasy sports operators and determine whether such audits demonstrate a Fantasy sports operator’s compliance with the Fantasy Sports Act and this Chapter 1350-05.

(7) To review, approve or deny entities seeking to provide compliance audit services pursuant to

Rule 1350-05-.11(2)(b).

(8) To provide information to the Department of Revenue to assist in the administration and collection of taxes applicable to Fantasy sports operators.

(9) To address player complaints or to assign the investigation of player complaints to a staff designee.

(10) To investigate suspected or reported violations of the Fantasy Sports Act and this Chapter 1350-05, to make evaluations as necessary to determine if Fantasy sports operators are complying with the Fantasy Sports Act and this Chapter 1350-05, and to issue subpoenas to compel the attendance of witnesses and the production or relevant books, accounts, records, and documents on behalf of the Council. The Executive Director shall recommend appropriate fines or civil penalties to the Council, or may issue appropriate fines or civil penalties on behalf of the Council upon written delegation of authority by the Chairman of the Council. The Executive Director may refer suspected and reported violations of the Fantasy Sports Act, or other state or federal laws, to law enforcement, as appropriate.

(11) To carry out any delegation of authority, as may be received in writing from the Chairman of the Council, from time to time, as exigent circumstances may require.

(12) To carry out any other duties as prescribed or instructed by the Council.

History

Authority: T.C.A. §§ 4-49-105, 4-49-204, 4-49-208, and 4-49-212.
Administrative History: New rules filed September 15, 2023; effective December 14, 2023.

Tenn. Comp. R. & Regs. 1350 — Tennessee Sports Wagering Council

Chapter 1350-01 Sports Gaming License Standards

Tenn. Comp. R. & Regs. 1350-01-.01 PURPOSE, AUTHORITY, AND APPLICABILITY

Tenn. Comp. R. & Regs. 1350-01-.02 DEFINITIONS

Tenn. Comp. R. & Regs. 1350-01-.03 GENERAL RULES

Tenn. Comp. R. & Regs. 1350-01-.04 LICENSING AND REGISTRATION

Tenn. Comp. R. & Regs. 1350-01-.05 APPLICATION PROCESS

Tenn. Comp. R. & Regs. 1350-01-.06 APPROVAL OR DENIAL OF AN INITIAL APPLICATION

Tenn. Comp. R. & Regs. 1350-01-.07 MAINTENANCE OF LICENSE OR REGISTRATION

Tenn. Comp. R. & Regs. 1350-01-.08 SPORTS GAMING ACCOUNTS

Tenn. Comp. R. & Regs. 1350-01-.09 PARLAY AND PROPOSITION BETS

Tenn. Comp. R. & Regs. 1350-01-.10 GLOBAL RISK MANAGEMENT

Tenn. Comp. R. & Regs. 1350-01-.11 EXECUTIVE DIRECTOR FOR THE SPORTS WAGERING COUNCIL

Tenn. Comp. R. & Regs. 1350-01-.12 RENEWAL OF LICENSE OR REGISTRATION

Tenn. Comp. R. & Regs. 1350-01-.13 CHANGE OF CONTROL

Tenn. Comp. R. & Regs. 1350-01-.14 GROUNDS FOR REVOCATION OF LICENSE OR REGISTRATION

Tenn. Comp. R. & Regs. 1350-01-.15 SPORTS GAMING SYSTEM REQUIREMENTS

Chapter 1350-02 Dispute Resolution

Tenn. Comp. R. & Regs. 1350-02-.01 APPLICABILITY OF REGULATION

Tenn. Comp. R. & Regs. 1350-02-.02 DENIAL OF APPLICATION FOR LICENSE OR REGISTRATION

Tenn. Comp. R. & Regs. 1350-02-.03 REVOCATION, SUSPENSION, FINES, CIVIL PENALTIES, AND NONRENEWALS OF

Tenn. Comp. R. & Regs. 1350-02-.04 REQUEST FOR HEARING FOLLOWING NOTICE OF PROPOSED REVOCATION,

Tenn. Comp. R. & Regs. 1350-02-.05 HEARING PROCEDURES FOLLOWING NOTICE OF PROPOSED REVOCATION,

Tenn. Comp. R. & Regs. 1350-02-.06 REQUESTS FOR RECONSIDERATION

Tenn. Comp. R. & Regs. 1350-02-.07 RECONSIDERATION BEFORE THE COUNCIL

Tenn. Comp. R. & Regs. 1350-02-.08 JUDICIAL REVIEW

Tenn. Comp. R. & Regs. 1350-02-.09 PLAYER DISPUTES

Tenn. Comp. R. & Regs. 1350-02-.10 APPEALS OF PLAYER DISPUTES BEFORE THE COUNCIL

Tenn. Comp. R. & Regs. 1350-02-.11 SCHEDULE OF ADMINISTRATIVE FINES

Chapter 1350-03 Minimum Internal Controls

Tenn. Comp. R. & Regs. 1350-03-.01 APPLICABILITY

Tenn. Comp. R. & Regs. 1350-03-.02 ; and (iv) The implementation of technology related to Voluntary Self-Exclusion and other Prohibited Players.

Tenn. Comp. R. & Regs. 1350-03-.03 USER ACCESS CONTROLS FOR ALL INTERACTIVE SPORTS GAMING PERSONNEL

Tenn. Comp. R. & Regs. 1350-03-.04 SEGREGATION OF DUTIES

Tenn. Comp. R. & Regs. 1350-03-.05 RISK MANAGEMENT PROCEDURES

Tenn. Comp. R. & Regs. 1350-03-.06 IDENTIFYING AND REPORTING UNUSUAL AND SUSPICIOUS ACTIVITIES

Tenn. Comp. R. & Regs. 1350-03-.07 PREVENTION OF INTERACTIVE SPORTS GAMING BY INELIGIBLE BETTORS

Tenn. Comp. R. & Regs. 1350-03-.08 AML AND REGULATORY COMPLIANCE STANDARDS

Tenn. Comp. R. & Regs. 1350-03-.09 TYPES OF WAGERS AVAILABLE

Tenn. Comp. R. & Regs. 1350-03-.10 THIRD-PARTY SYSTEMS

Tenn. Comp. R. & Regs. 1350-03-.11 PROHIBITION ON WAGERS AND PAYOUTS TO MINORS

Tenn. Comp. R. & Regs. 1350-03-.12 INFORMATION SYSTEM MINIMUM CONTROLS

Tenn. Comp. R. & Regs. 1350-03-.13 INFORMATION SYSTEM AUDIT REQUIREMENTS

Chapter 1350-04 Access to Public Records of the Sports Wagering Advisory Council

Tenn. Comp. R. & Regs. 1350-04-.01 PURPOSE AND SCOPE – ACCESS TO PUBLIC RECORDS OF THE SPORTS

Tenn. Comp. R. & Regs. 1350-04-.02 DEFINITIONS

Tenn. Comp. R. & Regs. 1350-04-.03 HOURS OF INSPECTION

Tenn. Comp. R. & Regs. 1350-04-.04 REQUESTING ACCESS TO PUBLIC RECORDS

Tenn. Comp. R. & Regs. 1350-04-.05 RESPONDING TO PUBLIC RECORDS REQUESTS

Tenn. Comp. R. & Regs. 1350-04-.06 INSPECTION OF RECORDS

Tenn. Comp. R. & Regs. 1350-04-.07 COPIES OF RECORDS

Tenn. Comp. R. & Regs. 1350-04-.08 FEES AND PROCEDURES FOR BILLING AND PAYMENT

Chapter 1350-05 Rules Related to the Fantasy Sports Act (Transferred from 1360-03-05)

Tenn. Comp. R. & Regs. 1350-05-.01 PURPOSE AND SCOPE

Tenn. Comp. R. & Regs. 1350-05-.02 DEFINITIONS

Tenn. Comp. R. & Regs. 1350-05-.03 INITIAL APPLICATION FOR LICENSURE

Tenn. Comp. R. & Regs. 1350-05-.04 RENEWAL APPLICATION FOR LICENSURE

Tenn. Comp. R. & Regs. 1350-05-.05 APPROVAL OF LICENSURE

Tenn. Comp. R. & Regs. 1350-05-.06 REGISTRATION OF PLAYERS/KNOW YOUR CUSTOMER REQUIREMENTS

Tenn. Comp. R. & Regs. 1350-05-.07 PLAYER ACCOUNT ACTIVITY

Tenn. Comp. R. & Regs. 1350-05-.08 PLAYER FUNDS AND REQUIRED RESERVE

Tenn. Comp. R. & Regs. 1350-05-.09 ACCOUNT MONITORING TO PREVENT MISUSE

Tenn. Comp. R. & Regs. 1350-05-.10 CERTAIN STATE EMPLOYEES PROHIBITED FROM PLAYING

Tenn. Comp. R. & Regs. 1350-05-.11 ANNUAL REPORTING AND AUDITS

Tenn. Comp. R. & Regs. 1350-05-.12 SCHEDULE OF RANGE OF CIVIL PENALTIES FOR VIOLATIONS OF THE FANTASY

Tenn. Comp. R. & Regs. 1350-05-.13 ADDITIONAL AUTHORIZED FEES

Tenn. Comp. R. & Regs. 1350-05-.14 EXECUTIVE DIRECTOR OF THE SPORTS WAGERING COUNCIL

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