Tenn. Comp. R. & Regs. 1350-01-.01 - [Effective until 12/28/2023] 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;
(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.


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 7/1/2023; effective through 12/28/2023 (EMERGENCY).

Authority: T.C.A. §§ 4-49-106, 4-49-110, 4-49-112, 4-49-115, 4-51-102, 4-51-103, 4-51-104, 4-51-105, 4-51-109, 4-51-124, and 10-7-504; 2019 Tenn. Pub. Acts, Ch. 507; 2021 Tenn. Pub. Acts, Ch. 593; and 2023 Tenn. Pub. Acts, Ch. 450.

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