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 Wagers 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 maintain membership in an independent integrity monitoring association or business which shall be approved by the Executive Director prior to Licensure or Registration.

(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.

(c) All Licensees shall Immediately Report to the Council any information required pursuant to Rule 1350-01-.07(11)(h).

(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 Licensee or Registrant, prospective Licensee or Registrant before the Council:

1. Any member or employee of the Council, during the term of their employment by, or membership on, the Council, and for a period of two (2) years thereafter.

2. Any member of the Board during 2020-21, or Person employed by TEL during 2020-21 or as of the effective date of these Rules, through December 31, 2023.

For purposes of this Rule, "represent" shall mean to appear before or communicate with the Council on behalf of any Licensee, Registrant, or prospective Licensee or Registrant.

(b) No Person identified in Rule 1350-01-.03(13)(a) may be employed in Tennessee by any Licensee for a period of two (2) years following their employment by, or membership on, the TEL, Board, or Council.

Notes

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

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. §§ 4-49-101, 4-49-102, 4-49-105, 4-49-106, 4-49-110, 4-49-111, 4-49-112, 4-49-114, 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.