Application Process

(1) An application for any type of License or Registration under these Rules shall be on forms issued by the Council and available on the Council’s website, in accordance with requirements of the Sports Gaming Act. (2) The application for a Sports Gaming Operator License or Registration as a Vendor shall, at a minimum, include the following: (a) The Applicant’s legal name, including any DBA, if applicable, and form of business entity; (b) The mailing address of the Applicant and, if a business entity, its state of formation, and the location of its principal place of business; (c) The names, addresses, taxpayer identification numbers, and dates of birth of each Key Personnel of the Applicant, along with three years of income tax returns for same; (d) The names, addresses, and employer identification numbers, as applicable, of each individual, group of individuals, trust or business entity associated with an Applicant, including, but not limited to, a holding company, parent company, or subsidiary company of the Applicant that has the ability to control the activities of the Applicant or elect a majority of the board of directors or select the manager or general partner of the Applicant (excluding any bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business); (e) For Sports Gaming Operator License Applicants, information, documentation, and assurances as may be required by form to establish by clear and convincing evidence that the Applicant has sufficient business ability and sports gaming experience to create and maintain a successful, efficient Interactive Sports Gaming operation. Sports Gaming Licensure Applicants shall submit 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 available. If an Applicant has audited financial statements prepared at the parent company level, the Applicant shall include with its audited consolidated financial statements a supplemental schedule (either audited or unaudited) of the Licensee Applicant’s Interactive Sports Gaming operations in Tennessee or an attestation from the Licensee Applicant’s Certified Public Accountant that the Applicant has implemented procedures to accurately report all financial data necessary to determine privilege taxes owed by the Applicant from Interactive Sports Gaming operations in Tennessee. If an Applicant has not previously been engaged in business operations prior to applying for licensure, the Applicant shall submit documents that establish, by clear and convincing evidence, that the Applicant has made sufficient arrangements to fund its proposed sports Wagering operations. SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (f) For Registrant Applicants, financial statements of the Registrant Applicant’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. (g) For Sports Gaming Operator License Applicants, a description of the proposed internal controls and security systems to be used in conducting sports wagering or processing sports wagering transactions, as may be applicable; (h) The number of employees expected to be employed by the Licensee or Registrant in the State of Tennessee; (i) For Sports Gaming Operator License Applicants, the estimated privilege tax revenue to be generated by the Sports Gaming Operator for the first three (3) years of operation; (j) For Sports Gaming Operator License Applicants, the estimated economic benefit to the State of Tennessee of the proposed License. The estimate may include, but not be limited to, the following: projected amount of annualized gross revenue; estimated new capital investment for the project; scientific or market research performed by the Applicant or its contractors; and such other information as may be requested by the Council; (k) A copy of the Applicant’s certificate of good standing and authorization to conduct business in the state of Tennessee; (l) A list of jurisdictions where the Applicant has (i) applied for a sports wagering or gaming license; (ii) been issued a sports wagering or gaming license; (iii) been the subject of a law enforcement or government subpoena, cease and desist letter, attorney general or government legal opinion, or other correspondence regarding any non-routine law enforcement or government investigation concerning conduct related to gambling operations (including casino gaming, horse racing, dog racing, pari-mutuel, lottery, sports betting, daily fantasy sports, etc.) in any jurisdiction; or (iv) had any sports wagering or gaming license denied, suspended, or revoked, and the status and copies of such documents relating to (iii) or (iv); (m) A list of all jurisdictions where the Applicant and its Key Personnel have conducted gaming or sports Wagering operations or provided services to a Sports Gaming Operator conducting gaming or sports Wagering operations. (n) Notice and a description of civil judgments obtained against the Applicant and any Key Personnel thereof, pursuant to the laws of the federal government, of the State of Tennessee or of any other state, jurisdiction, province, or country; (o) Description of any bankruptcy, insolvency, or liquidation actions filed by or against the Applicant or any Key Personnel thereof; (p) The Council will compile a national or, as applicable, international criminal history and background report on the Sports Gaming Operator License Applicant, Vendor Registrant, and Key Personnel thereof, including fingerprint submittals by individuals described in this subparagraph, conducted by the TBI, other U.S. or international law enforcement agency, Council staff, or other private security firm under contract to the Council. Said report shall include review of whether the Sports Gaming Operator License Applicant and Vendor Registrant, or any individual described in this subparagraph, has engaged in gaming activity in any jurisdiction in which such activity is illegal; and SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (q) Any other information the Council considers necessary and appropriate to determine by clear and convincing evidence the competency, law abiding nature, suitability, honesty and integrity of Applicant. (3) As required by the Sports Gaming Act, each Sports Gaming Operator License Applicant shall submit ancillary documentation necessary for the Council to assess fully the Applicant’s operations and compliance with the Sports Gaming Act. Each Sports Gaming Operator License Applicant shall submit with its application, made under oath, the following: (a) Applicant’s plan to provide data files, in a format and timeline approved by the Council, to the Council to confirm Applicant’s calculation of the privilege tax to be paid each month. (b) Applicant’s most recent Sports Gaming System Operational Assessment. (c) Applicant’s most recent Sports Gaming System Technology Integrity and Security Assessment. (d) Applicant’s Internal Control Standards as required by Chapter 1350-03 of these Rules, including: 1. A certification by the Licensee’s chief executive officer, chief compliance officer, general counsel, or other senior management official with similar responsibilities that the submitted Internal Control Standards conform to the requirements of Chapter 1350-03 of these Rules; and 2. A certification by the Licensee’s chief financial officer or other senior management official with similar responsibilities that the submitted Internal Control Standards: (i) Establish a consistent overall system of internal controls; (ii) Provide reasonable assurance that there are adequate controls in place to detect material errors or misrepresentations in financial reporting; and (iii) Conform to the requirements of Chapter 1350-03 of these Rules. (e) Applicant’s Responsible Gaming Plan, including Applicant’s methodology and process for Voluntary Self-Exclusion; maintenance of the Licensee-Specific Self-Exclusion List; preventing the placing of Wagers by individuals on the Licensee-Specific Self-Exclusion List, the Statewide Self-Exclusion List, and the ineligibility categories in T.C.A. § 4-49- 112(a); and information about how Applicant will use Player data and technology to aid in identifying problem gamblers. (f) Applicant’s plan and policy governing the acceptance of Wagers and making payouts (i.e., House Rules), which must be approved by the Council. (g) Procedures for issuance and acceptance of Promotional Credit for sports wagering. (h) Applicant’s customer service phone number and e-mail address for responding to public and Patron inquiries and questions originating from the State of Tennessee or relating to sports gaming operations in the State of Tennessee. Once Applicant receives its License, the Council shall post the Licensee’s customer service phone number and e- mail address on its website. (i) A list of Key Personnel for the State of Tennessee, specifically. The list must include the name, home address, date of birth, work location, title, and job description. SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (j) A description of Applicant’s expected use of Geolocation Services to prevent Wagers from outside the State of Tennessee. (k) The method by which the Sports Gaming Operator will identify and cancel Wagers, including defining “Obvious Error.” (l) The Applicant’s Terms and Conditions for sports Wagering in Tennessee, which must be approved by the Council. (4) An Applicant seeking registration as a Vendor providing Geolocation Service shall additionally provide the SWC with access to its geolocation system or a dashboard or application utilized by the Geolocation Service Vendor Applicant which: (a) Is customizable and provides geolocation data and visuals on demand; (b) Provides historical geolocation data for the prior six months; (c) Displays and is filterable by, at a minimum, the following data: 1. Time period; 2. User ID; 3. Operator name; 4. Device identifier; 5. Country, state and city; 6. Passed/failed transactions and failure reasons; 7. IP addresses; 8. Device type and device operating system; and 9. Distance to border or boundary; (d) Provides an interactive mapping tool capable of, at a minimum, displaying locations of geolocation transactions; and (e) Provides data, visuals, and reporting capabilities identifying suspicious activity, such as malicious or repeated location spoofing, account sharing and device sharing, and inconsistent locations (location jumping). (5) An Applicant shall notify the Council in writing of any material change to its application within ten (10) business days of the change. Notwithstanding the foregoing, an Applicant shall notify the Council of all changes to its Key Personnel within three (3) business days of the change. An Applicant shall complete all Key Personnel disclosures, including a statement as to any conflict of interest that may exist due to the changes in Key Personnel, within thirty (30) days of the change. (6) For a Sports Gaming Operator License, Applicant shall submit a nonrefundable application fee of fifty thousand dollars ($50,000) due at the time the initial or renewal application is submitted. Failure to submit the $50,000 application fee shall cause the application to be rejected or cause a delay in the processing of an application. Upon approval of the application, the $50,000 SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 application fee shall be applied to the Sports Gaming Operator’s licensing fee provided for by Rule 1350-01-.04(1)(b). The total fee shall be paid in full within ten (10) days of approval of the License or prior to expiration of the annual renewal period, which shall be one (1) year from the date of the issuance of the License. (7) Application fees, license fees, registration fees, background or investigative fees or costs, or any other fees or costs related to an application or renewal will not be refunded if an application for a License or Registration is withdrawn after submission. (8) Any Applicant shall complete such additional forms or provide such additional information as may be requested by the Council.