(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;
(c) The finances, earnings, revenue,
promotional activity, or Gross Handle of any Applicant, Licensee, or
Registrant;
(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.
Notes
Tenn. Comp. R. & Regs. 1350-01-.01
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 12/14/2023.
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.
