Tenn. Comp. R. & Regs. 1350-05-.02

Current through December 26, 2024

Section 1350-05-.02 - DEFINITIONS

As used in these rules, the following terms are defined as follows:

(1) "Adjusted Revenue" means the amount equal to the total entry fees collected from all players (regardless of the players' location) entering the fantasy sports contest less winnings paid to players in the contest, for the Fantasy sports operator's most recent fiscal year.

(2) "Attorney General and Reporter" or "Attorney General" means the Attorney General and Reporter of the State of Tennessee or his or her authorized designee.

(3) "Auto draft" means athlete selection offered by a Fantasy sports operator that does not involve any input or control by a player.

(4) "Beginning player" means any player who has entered fewer than fifty-one (51) contests offered by a single Fantasy sports operator, and who has not qualified as a Highly Experienced Player.

(5) "Clearly and conspicuously" means:

(a) To disclose in such a way that the disclosure is made through the same means through which the communication is presented.

(b) Requires that if the communication is visual, the disclosure is placed in close proximity to relevant claims, expressed in clear and plain language and syntax, and the size, contrast, location, and other characteristics stand out from other visual elements so that the disclosure is prominently displayed and unavoidable.

(c) Requires that the disclosure is repeated if necessary and is visible for a sufficient duration.

(d) Requires that if the communication is audio, the disclosure is presented at adequate volume and cadence, and

(e) Requires that the disclosure is made before the consumer makes a decision to accept an offer.

(6) "Daily fantasy sports contest" is any fantasy sports contest other than a season-long fantasy sports contest, as defined herein.

(7) "Entry fee" means any valuable consideration including, but not limited to, cash or a cash equivalent, that a Fantasy sports operator requires in order to participate in a fantasy sports contest.

(8) "Executive Director" means the individual hired by the Council to direct and oversee the day-to-day operations and management of the Sports Wagering Council, including overseeing enforcement of compliance with the Sports Gaming Act, the Fantasy Sports Act, and the Rules of the Council.

(9) "Fantasy sports contest"

(a) Means:

1. An online simulated game in which players are subject to an entry fee to assemble imaginary teams of athletes;

2. Players are offered an award or prize made known to the players in advance of the online simulated game; and

3. The winning outcome of which reflects in part the relative knowledge and skill of the participants and is determined predominantly by the accumulated statistical results of the performance or finishing position of athletes in underlying amateur or professional competitions; and

(b) Does not include:

1. A contest in which the operator allows the players to auto draft athletes or to choose between pre-selected teams of athletes;

2. A contest that offers or awards a prize to the winner of, or athletes in, the underlying competition itself; and

3. A contest where the winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of teams or solely on any single performance of an athlete or participant in any single actual event.

(10) "Fantasy sports contest platform" means any online method by which access to a fantasy sports contest is provided, including, but not limited to a website, smart phone application, or other application providing access to a fantasy sports contest.

(11) "Fantasy sports operator" means a person that offers fantasy sports contests through an online digital platform.

(12) "Fantasy sports operator contractor" means any person or entity who works pursuant to an independent contract with a Fantasy sports operator and who has access to nonpublic portions of the Fantasy sports operator's office, the Fantasy sports operator's nonpublic computer network, or the Fantasy sports operator's proprietary information that may affect how the fantasy sports contest is played.

(13) "Highly experienced player" means a person who has either:

(a) Entered more than five hundred (500) contests offered by a single Fantasy sports operator; or

(b) Won more than five (5) fantasy sports prizes where the total value of the prizes is two thousand five hundred dollars ($2,500) or more.

(14) "Knowingly" means to have known or should have known.

(15) "Minor" means any person under eighteen (18) years of age.

(16) "Person" has the same meaning as defined in T.C.A. § 47-18-103.

(17) "Player" means a person who participates in a fantasy sports contest offered by a Fantasy sports operator.

(18) "Private contest" means a fantasy sports contest established among players known to each other and the terms and any prize of which are not established by a Fantasy sports operator.

(19) "Prize" means a prize, award, incentive, promotion, or anything of value, including, but not limited to, money, contest credits, merchandise, or admission to another fantasy sports contest.

(20) "Resident percentage" means, for each fantasy sports contest, the percentage, rounded to the nearest tenth of a percent (0.1%), of the total entry fees collected from Tennessee consumers divided by the total entry fees collected from all players, regardless of the players' location, of the fantasy sports contest.

(21) "Script" means a list of commands that a fantasy-sports-related computer program can execute and that are created by players, or by third parties for the use of players, to automate processes on a fantasy sports contest platform.

(22) "Season-long fantasy sports contest" means a fantasy sports contest offered by a Fantasy sports operator that is conducted over an entire sports season.

(23) "Sports Wagering Council" or "Council" means the council created by T.C.A. § 4-49-105(a)(1) that is responsible for overseeing compliance with the Sports Gaming Act, the Fantasy Sports Act, and the Rules of the Council.

(24) "Tennessee consumer" means a consumer located in this state at the time the person enters a fantasy sports contest.

Tenn. Comp. R. & Regs. 1350-05-.02

Emergency rules filed June 16, 2023 to become effective July 1, 2023; effective through December 28, 2023. New rules filed September 15, 2023; effective 12/14/2023.

Authority: T.C.A. §§ 4-49-105, 4-49-201, 4-49-202, and 4-49-212.