(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:
1. Not less than twenty-four (24) hours prior to the meeting, provides on its website public notice of the meeting;
2. Provides adequate electronic or other notice to each Licensee or Registrant with an interest in the meeting;
3. 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.


Tenn. Comp. R. & Regs. 1350-02-.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 7/1/2023; effective through 12/28/2023 (EMERGENCY).

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 and 2023 Tenn. Pub. Acts, Ch. 450.

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