In order to maintain its License or Registration, a Licensee or Registrant is required to maintain certain requirements, conditions, and programs. Failure to maintain these requirements, conditions, and programs may result in the suspension or revocation of a License or Registration or imposition of a fine.

1. (1) Reserve Requirements - Licensees

   1. (a) Licensees shall obtain a Bond in the amount of at least five hundred thousand dollars ($500,000) in order to conduct sports wagering in the State of Tennessee. The Bond may be used to fund the reserve. The company issuing the Bond shall be financially rated A or better by a nationally recognized rating agency and duly licensed, admitted, and authorized to transact business in the State of Tennessee. Licensees shall provide the original Bond to the Council. The Bond shall be renewable annually and shall list the Council as obligee of the Bond. The Bond may not be cancelled without a minimum of thirty (30) days’ prior written notice to the Council. The form of the Bond to be executed will be made available on the Council’s website.

   2. (b) Licensees also shall maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, a Bond, or a combination thereof, of not less than the amount necessary to ensure the ability to cover the outstanding liability related to the Sports Gaming Accounts. The outstanding liability shall be the sum of the following amounts:

      1. 1. Amounts held by the Licensee for Sports Gaming Accounts;
      2. 2. Aggregate amounts accepted by the Licensee as Wagers on Sporting Events with outcomes that have not been determined yet; and
      3. 3. Amounts owed but unpaid by the Licensee on winning Wagers.
   3. (c) Licensees must receive Council approval in order to remove, release, or withdraw funds necessary to meet the Licensee’s reserve requirement in subdivision (b) of this section for non-Patron purposes. For the avoidance of doubt, Licensees may remove, release, or withdraw funds that are held in the reserve account that are in excess of the Licensee’s reserve requirement in subdivision (b) of this section.
   4. (d) Licensees shall calculate their reserve requirements each business day. In the event a Licensee determines that its reserve is not sufficient to cover the calculated requirement for two consecutive business days, the Licensee, within twenty-four (24) hours, must notify the Council of this occurrence and indicate the steps the Licensee has taken to remedy any deficiency. All reserve funds held in cash or cash equivalents must be held in a financial institution that is federally insured by the FDIC or NCUA and lawfully operating in Tennessee. For the avoidance of doubt, a Licensee shall be deemed to meet the reserve requirements in subparagraph (b) above if the Licensee adds sufficient funds to cover the calculated requirement prior to the end of the following business day.

2. (2) Insurance Requirements – Licensees.

   1. (a) Licensees shall provide the Council with certificates of insurance prior to approval of the License and with each renewal application. The company issuing the insurance shall be financially rated A or better by a nationally recognized rating agency and duly licensed, admitted, and authorized to transact business in the State of Tennessee.

   2. (b) Subject to paragraph (c) below, Licensees shall maintain the following types and amounts of insurance while they are an approved Licensee to conduct Interactive Sports Gaming activities in the State of Tennessee:

      1. 1. Licensees who anticipate having less than 100,000 Player accounts during the upcoming year of licensure shall maintain cyber liability insurance in the amount of five million dollars ($5,000,000).
      2. 2. Licensees who anticipate having more than 100,000 Player accounts during the upcoming year of licensure shall maintain cyber liability insurance in the amount of ten million dollars ($10,000,000).
   3. (c) Licensees that are unable to obtain the coverage amounts specified in 1350-01-.07(2)(b) at commercially reasonable terms, in the sole discretion of the Council, must maintain coverage in the maximum amounts offered to the Licensee by the issuing insurance company. Such Licensees must provide a notarized statement or letter from their insurance agent or broker stating that (1) Licensee was unable to obtain required insurance coverage after diligent effort, including a list of issuing insurance companies where inquiry was made, (2) the maximum amounts offered to Licensee by the insurance companies where inquiry was made, and (3) the reason for the deficiency. Such Licensee shall provide the Council with a detailed plan of how it intends to compensate for the deficiency in insurance coverage, which must be approved by the Council prior to Licensure.

3. (3) Periodic Audits.

   1. (a) Licensees.

      1. 1. Prior to Licensure and annually thereafter prior to renewal, Licensees shall submit to the Council an audit of the financial statements and condition of the Licensee’s Interactive Sports Gaming operations in the State of Tennessee prepared within the preceding twelve-month period by a Certified Public Accountant in accordance with generally accepted accounting principles and applicable state and federal law. If a Licensee has audited financial statements prepared at the parent company level, the Licensee shall include with its audited consolidated financial statements a supplemental schedule (either audited or unaudited) of the Operator’s Interactive Sports Gaming operations in Tennessee or an attestation from the Operator’s Certified Public Accountant that the Licensee has implemented procedures to accurately report all financial data necessary to determine privilege taxes owed by the Applicant Interactive Sports Gaming operations in Tennessee.
      2. 2. Licensees shall establish and maintain books, records, and documents (including electronic storage media) in accordance with generally accepted accounting principles and practices that sufficiently and properly reflect all revenues and expenditures of funds associated with Interactive Sports Gaming.
      3. 3. Licensees shall retain all records, financial records, supporting documents, statistical records, and any other documents (including electronic storage media) pertinent to their Interactive Sports Gaming operations for a minimum period of five (5) years from their creation.
      4. 4. Books and records pertaining to Interactive Sports Gaming in the State of Tennessee shall be subject to inspection, review, and audit by the Council at any time within the sole discretion of the Council. Licensee shall cooperate in any such inspection, review, or audit.

   2. (b) Registrants.

      1. 1. Prior to Registration and prior to renewal, Registrants shall submit financial statements of the Registrant’s financial condition prepared within the preceding twelve-month period in accordance with generally accepted accounting principles and applicable state and federal law. A Registrant Applicant may provide financial statements prepared at the parent company level.
      2. 2. Registrants shall establish and maintain books, records, and documents (including electronic storage media) in accordance with generally accepted accounting principles and practices that sufficiently and properly reflect all revenues and expenditures of funds associated with Interactive Sports Gaming.
      3. 3. Registrants shall retain all records, financial records, supporting documents, statistical records, and any other documents (including electronic storage media) pertinent to involvement with Interactive Sports Gaming for a minimum period of five (5) years from their creation.
      4. 4. Books and records pertaining to Interactive Sports Gaming in the State of Tennessee shall be subject to inspection, review, and audit by the Council at any time within the sole discretion of the Council. Registrant shall cooperate in any such inspection, review, or audit.

4. (4) Financial Reporting and Financial Data Requirements.

   1. (a) The Sports Gaming System must have the ability to deliver all requested data either by report or data file to the Council while achieving compliance with standards of integrity, security, and control required by the Council.
   2. (b) The Sports Gaming System must have the ability to generate reports or data necessary for the Licensee and the Council to determine and record the financial data necessary to determine the privilege tax calculation over a daily, weekly, and monthly period, in a manner determined by the Council.
   3. (c) All data required must be submitted in formats approved by the Council.
   4. (d) All required reports shall be generated by the Sports Gaming System, even if the period specified contains no data to be presented. The report generated shall indicate all required information and contain an indication of “No Activity” or similar message if no data appears for the period specified.
   5. (e) The Council may periodically prescribe a set of standard reporting forms and instructions to be used by each Licensee for filing daily, weekly, monthly, and/or quarterly reports.
5. (5) Bank Account In order to ensure the security of funds due to the State of Tennessee for payment of the privilege tax imposed under the Sports Gaming Act, Licensees shall maintain a bank account with a financial institution that is federally insured by the FDIC or NCUA and lawfully operating in Tennessee. This bank account shall be separate from all other operating accounts of the Licensee and shall hold all amounts calculated by the Licensee to be owed for payment of the privilege tax until payment is made pursuant to paragraph (6) below.

6. (6) Payment of Privilege Tax

   1. (a) There is imposed upon the Gross Handle of a Licensee a privilege tax of one and eighty- five one hundredths percent (1.85%) of a Licensee’s Gross Handle, less allowable deductions.
   2. (b) A Licensee shall pay the privilege tax each month based on its Gross Handle for the immediately preceding calendar month.
   3. (c) A Licensee shall utilize the Cash Basis for calculating and reporting privilege taxes.

   4. (d) A Licensee may deduct the following amounts from the prior month’s Gross Wagers prior to calculation of the privilege tax owed:

      1. 1. The amount of Federal Excise Tax paid by the Licensee for the prior month;
      2. 2. Cancelled Wagers:
      3. 3. Voided Wagers; and
      4. 4. Resettled Wagers that result in a negative adjustment. Resettled Wagers that result in a positive adjustment must be added to Gross Wagers.

   5. (e) A Licensee may not deduct the following from its Gross Handle prior to calculation of the privilege tax owed:

      1. 1. Payouts to Bettors;
      2. 2. Promotional Wagers;
      3. 3. Promotional Payouts; or
      4. 4. Anything not specified in this Rule or that has not otherwise been expressly approved in writing by the Executive Director or his or her designee prior to the deduction.
   6. (f) The privilege tax for the immediately preceding calendar month shall be transferred to the Licensee’s bank account required by Rule 1350-01-.07(5) by the fifth (5th) business day of each month. A Licensee shall contemporaneously, in a manner specified by the Council, submit a report showing Gross Handle, Gross Wagers, deductions taken in accordance with subparagraph (d) above, and the total amount of privilege tax owed by the Licensee.

7. (7) Prohibition on Wagers by and Payouts to Minors.

   1. (a) A Licensee shall not permit Wagers to be placed by Minors. Each Licensee shall maintain a system through which it verifies that Wagers are not made by Minors in accordance with Rule 1350-03-.11. A Licensee shall prohibit any Minor from making deposits, collecting payouts, and collecting winnings from Interactive Sports Gaming.
   2. (b) Licensee shall provide the Council information about its methodology for verifying the age of a Bettor. Licensee shall notify Council of any changes to its methodology, or if there is a change of any Vendor or provider that provides age verification services to the Licensee within ten (10) days of any such change.
   3. (c) Licensee’s system to verify that Wagers are not made by Minors and prohibiting payouts to Minors shall be tested and evaluated as part of the Licensee’s Sports Gaming System Operational Assessment.

8. (8) Prohibited Participants.

   1. (a) Licensees shall not permit Wagers to be placed by Prohibited Participants. A Licensee shall maintain a system through which it verifies that Wagers are not made by Prohibited Participants.
   2. (b) Licensees shall provide the Council information about its methodology for determining whether or not a Player is ineligible due to his/her inclusion in one or more classes of Prohibited Participants as enumerated in the Sports Gaming Act. Licensee shall notify Council of any changes to its methodology pursuant to the change management provisions contained in Rule 1350-03-.02.
   3. (c) Licensees shall prohibit any Person who is included in a class of individuals ineligible to place a Wager pursuant to the Sports Gaming Act from collecting payouts or winnings from Interactive Sports Gaming.
   4. (d) Licensee’s system to verify that Wagers are not made by Prohibited Participants and prohibiting payouts to Prohibited Participants shall be tested and evaluated as part of the Licensee’s Sports Gaming System Operational Assessment.

9. (9) Integrity Monitoring.

   1. (a) Licensees shall have controls in place to identify Unusual and Suspicious Wagering Activity and report such activity to the Council and to their Integrity Monitoring Provider according to the Integrity Monitoring System provisions set forth in the MICS contained in these Rules.
   2. (b) Licensee’s Integrity Monitoring System procedures shall provide for the sharing of Unusual Wagering Activity and Suspicious Wagering Activity with the Council, either directly or through the Licensee’s Integrity Monitoring Provider.
   3. (c) Licensees shall review reports of Unusual Wagering Activity and Suspicious Wagering Activity received from their Integrity Monitoring Provider and notify their Integrity Monitoring Provider whether they have experienced similar activity.
   4. (d) If a Licensee finds that previously reported Unusual Wagering Activity rises to the level of Suspicious Wagering Activity or identifies Suspicious Wagering Activity, Licensee shall Immediately Notify the Council.
   5. (e) Licensees reporting on Suspicious Wagering Activities shall be permitted to suspend or cancel Wagering on Events related to the report and must Immediately Notify the Council upon taking such action.
   6. (f) Notwithstanding the other provisions of this section, all information and data received by the Council regarding Unusual or Suspicious Wagering Activity shall be considered confidential. Such data and information may not be revealed in whole or in part except upon the lawful order of a court of competent jurisdiction, or, with any law enforcement entities, regulatory agencies, governing authorities, integrity monitoring organizations or other organization necessary to facilitate integrity monitoring, or with accredited sports governing bodies as required by the Sports Gaming Act or Council.

10. (10) Participation in Investigations.

    1. (a) Each Licensee and Registrant shall cooperate in good faith with investigations conducted by the Council, sports governing bodies, and law enforcement agencies.
    2. (b) Licensees shall provide or facilitate provision of account-level betting information and data files relating to Persons placing Wagers and any other information necessary for investigations conducted by the Council or law enforcement.
    3. (c) The Council shall investigate, and each Licensee or Registrant shall cooperate with such investigation, upon information and belief that a Licensee or Registrant has failed to comply with the requirements outlined in the Sports Gaming Act or these Rules.
    4. (d) During normal business hours, the Council and its agents may enter the premises of any facility of a Licensee or Registrant that is utilized by the Licensee to operate and conduct Interactive Sports Gaming business in the State of Tennessee for the purpose of inspecting equipment, books, and records kept as required by the Sports Gaming Act or these Rules, to ensure that the Licensee is in compliance with the Sports Gaming Act or these Rules, or to make any other inspection as necessary to enforce the Sports Gaming Act or these Rules. Failure to admit the Council or its agents after presentation of credentials shall be grounds for disciplinary action.
    5. (e) The Council and its agents, including its law enforcement representatives, shall be able to demand access and inspect business records of any Licensee or Registrant without the requirement to obtain a subpoena. Failure to provide access to the Council or its agents after presentation of credentials shall be grounds for disciplinary action.
    6. (f) Each Licensee and Registrant shall maintain all records relating to the conduct of Interactive Sports Gaming in the State of Tennessee for a period of five (5) years.
    7. (g) The Council may investigate any violation of the Sports Gaming Act, the Rules, or any conduct that affects the integrity of Interactive Sports Gaming in the State of Tennessee

    8. (h) Licensees and Registrants shall Immediately Report to the Council any information relating to:

       1. 1. Criminal or disciplinary proceedings or non-routine government or law enforcement investigations commenced against the Licensee or Registrant in connection with its operations in any jurisdiction;
       2. 2. Unusual or Suspicious Wagering Activity, including activities reported to the federal government pursuant to AML laws and regulations and Wagers placed to conceal or launder funds derived from illegal activity;
       3. 3. Any potential or actual breach of a sports governing body’s internal rules and codes of conduct pertaining to sports wagering that is known or reasonably should have been known to Licensee or Registrant;
       4. 4. Cheating, including wagering activities or patterns that may indicate a concern with the integrity of a Sporting Event;
       5. 5. Conduct that corrupts, is intended to corrupt, or unduly influences the betting outcome of a Sporting Event for purposes of financial gain, including match fixing; and
       6. 6. An agent or proxy placing a Wager on behalf of another Person, or the use of false identification.
    9. (i) Licensees also must report information relating to conduct described in subparagraph (h), parts 2.–5., above, to the relevant sports governing body and provide Written Notice of its communications to the sports governing body to the Council. With respect to any information provided by a Licensee to a sports governing body, a sports governing body may only use such information for integrity purposes and shall maintain the confidentiality of such information, unless disclosure is required by the Tennessee Sports Gaming Act, Council, other law, court order, or unless the Licensee consents to disclosure.
    10. (j) Licensees shall share with the Council, upon request by the Council, in real time and at the account level, information regarding a Bettor, the amount and type of each Wager, the time the Wager was placed, the location of the Wager, including the Internet protocol address if applicable, the outcome of the Wager, and records of abnormal, Unusual, or Suspicious Wagering Activity related to the Wager. Information shared under this subparagraph shall be submitted in the form and manner as requested by the Council.
    11. (k) If a sports governing body has notified the Council in writing that real-time information sharing for Wagers placed on its Sporting Events is necessary and desirable, Licensees shall share the same information with the sports governing body or its designee with respect to Wagers on its Sporting Events. Such information may be provided in anonymized form and may be used by a sports governing body solely for integrity purposes.

11. (11) Manner in Which Interactive Sports Gaming May Be Advertised, Marketed, and Promoted. This Rule is authorized by T.C.A. § 4-49-118 to effectuate the prohibitions of that statute and establish the manner in which a Licensee may advertise its business operations compliant with the Sports Gaming Act.

    1. (a) Licensees shall provide electronic copies of all advertising, marketing, and promotional materials developed by the Licensee or by a Vendor on behalf of the Licensee to the Council within five (5) business days following their publication, distribution, or airing to the public, as applicable. Vendors who advertise, market, or offer promotions on behalf of more than one Licensee or without affiliation to any Licensee shall provide materials to the Council within five (5) business days following their publication, distribution, or airing to the public, as applicable. Licensees and Vendors may also submit advertising, marketing, and promotional materials to the Council for review in advance of publication, distribution, or airing to the public. If the Licensee or Vendor seeks advance review, the Licensee or Vendor shall submit such materials to the Council at least 48 hours in advance of publication, distribution, or airing to the public.
    2. (b) Licensees shall not directly advertise or promote Interactive Sports Gaming to Minors.

    3. (c) Advertising, marketing, and promotional materials published, distributed, or aired by or on behalf of a Licensee shall include a responsible gaming message, which includes, at a minimum, a Council-approved problem-gambling helpline number and an assistance and prevention message.

       1. 1. Licensees shall include the logo and gambling hotline number for the Tennessee REDLINE, a 24/7 addiction treatment and recovery hotline provided by the Tennessee Association of Alcohol, Drug and other Addiction Services (TAADAS), 1-800-GAMBLER, or another toll-free gambling hotline number as approved by the Council. Logos for the Tennessee REDLINE will be provided to the Licensee by the Council.
       2. 2. In areas where space limitations create an issue for use of a logo, copy can be used to communicate the phone number. Individual social media postings (e.g., tweets, Facebook posts) where space is severely limited are not required to include the information set forth in part 1. of subparagraph (c). Social media pages and direct messages sent via social media platforms must contain the information set forth in part 1. of subparagraph (c).
       3. 3. In determining whether to approve a Licensee’s usage of a toll-free number other than the Tennessee REDLINE or 1-800-GAMBLER, the Council shall consider the following factors:
    4. (i) Whether the toll-free number provides callers with information about services available in the location of the caller;
    5. (ii) Whether the toll-free number provides a direct connection with additional services needed by the caller or requires the caller to place a separate, additional call;
    6. (iii) The hours of operation of the toll-free number;
    7. (iv) Whether the toll-free number allows for text-based communication;
    8. (v) Whether the toll-free number is specifically designed to address responsible gaming, or whether it also encompasses other services;
    9. (vi) The promptness in answering and professionalism of the individuals providing service through the toll-free number; and

    10. (vii) Whether the toll-free number collects, organizes and makes data publicly available, or specifically available to Tennessee, regarding demographics and utilization rates of callers that may be used to research and develop Responsible Gaming protocols.

        1. 4. The Council shall post on its website a list of approved toll-free numbers that Licensees may use in their advertisements, which may be amended from time to time to add additional approved toll-free numbers. If the Council amends the list of approved toll-free numbers to remove a previously approved number, the Council will give Licensees thirty (30) days’ advance Written Notice so Licensees can remove that number from their advertisements.
    11. (d) Licensees shall communicate the legal age to participate (21 years old and above) on any website, mobile app, and other mediums or forms of advertising, marketing, and promotions.
    12. (e) Advertisements, marketing, or promotions shall comply with the Federal Trade Commission, Guides Concerning Use of Endorsements and Testimonials in Advertising, compiled in 16 CFR § 255.
    13. (f) Advertisements, marketing, or promotions shall not contain images, symbols, celebrity/entertainer endorsements, and/or language designed to appeal specifically to those under 21 years old.
    14. (g) Advertisements, marketing, and promotions shall not imply that Minors may engage in Interactive Sports Gaming, or feature anyone who is or appears to be below 21 years old, unless the individual is a participant in a Sporting Event upon which a wager may be placed;

    15. (h) A Licensee must report the following information regarding compensation, whether monetary or otherwise, paid by a Licensee to an individual who is eligible to participate in Sporting Events upon which a Wager can be placed:

        1. 1. The name of the individual being compensated;
        2. 2. The amount and form of compensation; and
        3. 3. A general description of the service to be performed by the individual. Upon request of the Council, the Licensee may be required to provide copies of agreements between the Licensee and the individual receiving the compensation.
    16. (i) Licensees shall not advertise in media outlets that appeal primarily to those under the age of 21;
    17. (j) Advertisements, marketing, or promotions shall not be placed before any audience where the majority of the participants is presumed to be below the age of 21 or that targets potentially vulnerable Persons, including Self-Excluded Individuals.
    18. (k) Licensees shall not target advertising and marketing to Self-Excluded Individuals through direct mail, direct messaging, text, or e-mail.
    19. (l) All direct advertising, marketing, or promotions via e-mail or text message must allow the recipient an option to unsubscribe;
    20. (m) Licensees shall provide the requirements of this paragraph (12) to advertising, marketing, and promotions personnel, contractors, agents, and agencies retained by Licensees or their agents to ensure compliance herewith; and
    21. (n) Failure to adhere to any of the above may be grounds for disciplinary action.

12. (12) Maintenance of Self-Exclusion Lists.

    1. (a) Licensees shall offer a Licensee-Specific Self-Exclusion List. Licensees may, at the request of a Bettor, offer individuals the option of placing themselves on the Statewide Self-Exclusion List, by directing the individuals to the Council. Licensees shall electronically provide a list of individuals who have requested placement on the Licensee-Specific Self-Exclusion List to the Council no less than once per week (even if the list contains zero individuals) in a format specified by the Executive Director or designee.
    2. (b) Licensees shall submit a monthly report to the Council that includes both the number of individuals who requested Voluntary Self-Exclusion through the Licensee-Specific Self- Exclusion List and the number of individuals processed from the Statewide Self- Exclusion List.
    3. (c) Any individual may request Voluntary Self-Exclusion, and that Self-Excluded Individual during any period of Voluntary Self-Exclusion may not collect any winnings or recover any losses resulting from any Interactive Sports Gaming, except that a Player’s Sports Gaming Account balance on settled Wagers placed prior to the Voluntary Self-Exclusion shall be returned to the Self-Excluded Individual. Individuals who believe they were inadvertently placed on a Licensee-Specific Self-Exclusion List or the Statewide Self- Exclusion List may request removal from a Licensee-Specific Self-Exclusion List or the Statewide Self-Exclusion List by completing an application for removal. The individual may request the application for removal from the Council. Submission of the application for removal does not guarantee removal from a Licensee-Specific Self-Exclusion List or the Statewide Self-Exclusion List.
    4. (d) Licensees shall provide sufficient notice to the Player regarding any additional effects of inclusion on the Licensee-Specific Self-Exclusion List and/or the Statewide Self- Exclusion List. If applicable, such notice shall include language advising the Player that, once included on the Licensee-Specific Self-Exclusion List and/or the Statewide Self- Exclusion List, the Licensee may choose to exclude the Player permanently, regardless of the exclusion period requested, and advising whether the Player is excluded from other platforms or properties of the Licensee.

13. (13) Reporting Requirements. Licensees and Registrants shall report, within three (3) business days of the change, any information relating to:

    1. (a) The name, home address, and date of birth of any new Key Personnel;
    2. (b) Potential purchase or sale, transfer, assignment, gift or donation, or other disposal or acquisition of 5% or more ownership of a Licensee or Vendor;
    3. (c) The resignation, termination, removal, or departure of any Key Personnel of a Licensee or Vendor; and
    4. (d) All other information or circumstances which are deemed to be reportable under these Rules.

14. (14) House Rules.

    1. (a) Licensees shall adopt comprehensive House Rules which shall be submitted to the Council for approval with the initial application for a License. Amendments to the House Rules must be submitted to the Council for approval no less than ten (10) business days prior to their proposed implementation.

    2. (b) At a minimum, the House Rules shall address the following items:

       1. 1. A method for the calculation and payment of winning Wagers;
       2. 2. The effect of schedule changes;
       3. 3. The method of notifying Players of odds or proposition changes;
       4. 4. Acceptance of Wagers at terms other than those posted;
       5. 5. The method of contacting the Licensee for questions and complaints;
       6. 6. A description of Prohibited Participants and others who may be restricted from placing a Wager;
       7. 7. The method(s) of funding a Wager;
       8. 8. A description of all types of Wagers that may be accepted, including any minimum and maximum Wagers;
       9. 9. The method by which the Sports Gaming Operator will identify and cancel Wagers, including defining Obvious Error pursuant to these Rules;
       10. 10. A provision prohibiting the structuring of Bets to avoid federal currency transactional reporting thresholds; and
       11. 11. Notice that Wagers are subject to AML standards, including triggers and requirements for filing of Currency Transaction Reports and Suspicious Activity Reports;
       12. 12. Notice that Wagers are enforceable contracts between the Licensee and the Bettor under T.C.A. § 4-49-113 and, as such, may be limited by the Licensee in terms of Wagers offered, or amounts accepted as Wagers, to any Bettor at any time, as long as the Licensee shares those limits with the Bettor in advance of the Wager being placed.
    3. (c) House Rules shall be conspicuously accessible on the Licensee’s websites and Mobile Applications.
    4. (d) Copies of the House Rules shall be made readily available, upon request, to Players.
15. (15) Internal Control Standards. Licensees shall develop Internal Control Standards according to the requirements and specifications in Rule 1350-03-.02(2). Licensees shall submit material changes to Internal Control Standards no less than ten (10) business days prior to their proposed implementation. Licensees shall submit a redline when seeking review and approval of material changes to Internal Control Standards and new certifications consistent with Rule 1350-01-.05(3)(d). Licensees shall submit a clean copy of revised Internal Control Standards after approval.

16. (16) Geolocation System.

    1. (a) Licensee shall keep its geolocation system up to date, including integrating the latest versions in real time that can detect the use of remote desktop software, rootkits, virtualization, or any other programs identified by the Council having the ability to circumvent geolocation measures.
    2. (b) The integrity of the geolocation system shall be reviewed regularly, but no less than every one hundred eighty (180) days, by the Licensee to ensure it detects and mitigates existing and emerging location fraud risks, and that is has been updated to incorporate all available patches and updates recommended by the Licensee’s Geolocation Service Vendor.
    3. (c) Licensee must either (1) provide the Council evidence that the geolocation system is updated to the latest version every 180 days, or (2) provide the Council with access to its geolocation system (or a dashboard or application utilized by the geolocation system Vendor) so that compliance can be independently verified by the Council.
17. (17) Terms and Conditions. Licensees shall adopt Terms and Conditions which shall be submitted to the Council for approval with initial applications for Licenses. Licensees shall submit material changes to Terms and Conditions to the Council for approval not less than ten (10) business days prior to their proposed implementation. Licensees shall submit a redline when seeking review and approval of material changes to Terms and Conditions, and Licensees shall submit a clean copy of revised Terms and Conditions after approval.

Authority: T.C.A. §§ 4-49-101, 4-49-102, 4-49-104, 4-49-106, 4-49-109, 4-49-109(a), 4-49-110, 4-49-112, 4-49-115, 4-49-115(f), 4-49-117, 4-49-118, 4-49-119, 4-49-119(b), 4-49-120, 4-49-122, 4-49-123, 4-49- 124, 4-49-125, 4-49-127, and 4-49-133; and 2023 Tenn. Pub. Acts, Ch. 450. Administrative History: 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 December 14, 2023. Amendments filed April 1, 2025; effective June 30, 2025.