Tenn. Comp. R. & Regs. 1350-01-.04

Current through December 10, 2024

Section 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:

1. 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:

1. 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 at 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 Player Account Management Services, a registration fee in the amount of one hundred fifty thousand dollars ($150,000). Fifty thousand dollars ($50,000) of the fee is due at 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 Risk Management Services, Oddsmaking 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 at 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 at 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; and

(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 at 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.

Tenn. Comp. R. & Regs. 1350-01-.04

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(27), 4-49-106, 4-49-110, 4-49-115, 4-49-115(f), 4-49-117, 4-49-125, and 4-49-131; and 2023 Tenn. Pub. Acts, Ch. 450.