Sports Gaming Accounts

(1) Interactive Sports Gaming shall only be engaged in by Players who have established a Sports Gaming Account with an approved Licensee. (2) The information necessary to establish a Sports Gaming Account shall be recorded and maintained for a period of five (5) years by the Licensee. SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (3) Prior to the establishment of a Player’s Sports Gaming Account, a Licensee shall, at a minimum, verify a Player’s identity using the KYC methods set forth in subparagraphs (a) and (b), below. If the KYC methods set forth in subparagraphs (a) and (b), below, are unsuccessful in verifying the Player’s identity, the Licensee may use the manual KYC process set forth in subparagraph (c), below. (a) A Licensee shall, at a minimum, collect the following information about a Player, and store this information within the Sports Gaming System: 1. The Player’s legal first name; 2. The Player’s legal last name, which the Licensee shall verify as an exact match with its KYC Vendor’s data sources; 3. The Player’s date of birth (including day, month, and year), which the Licensee shall verify as an exact match with its KYC Vendor’s data sources; 4. The Player’s social security number (“SSN”) or only the last four digits of the SSN if sufficient, or the equivalent for a foreign Player who places a Wager within Tennessee (such as a passport or taxpayer identification number). The Licensee shall verify the number provided as an exact match with its KYC Vendor’s data sources; 5. The Player’s residential address (other than a post office box); 6. The Player’s phone number(s); and 7. The Player’s e-mail address. (b) A Licensee shall ensure that the individual attempting to establish a Sports Gaming Account is the individual that they hold themselves out to be through at least one of the following authentication methods; 1. Requiring three knowledge-based questions related to the individual’s personal history or identity, formulated from public and proprietary data sources, to be successfully answered; 2. Verification that the Player’s phone number is associated with the Player, which shall be verified through a third-party or governmental data source. The verification shall fail if the phone number or device has been found to be associated with prior fraudulent identity; 3. Verification of a valid government-issued ID; 4. Verification of biometric identification with a valid government-issued ID; or 5. Any other method approved by the Council. (c) Manual KYC verification: If the KYC methods set forth in subparagraphs (a) and (b), above, are unsuccessful, the Licensee may use a manual KYC process that includes a review of the Player’s submitted documentation to authenticate all KYC data as described in subparagraph (a), above. (4) Prior to the establishment of a Player’s Sports Gaming Account, the Licensee shall: SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (a) Verify that the Player is not a Prohibited Participant using commercially reasonable means or through approved KYC procedures; (b) Provide the Player a definition of Prohibited Participant; and (c) Record the Player’s acknowledgment that the Player is not a Prohibited Participant. (5) Licensees shall record the Player’s acceptance of the Terms and Conditions and privacy policy and acknowledgment that the information provided is accurate and the Player is prohibited from allowing any other Person to access or use the Player’s Sports Gaming Account. (6) If a Licensee determines that the information provided by a Player to make a deposit or process a withdrawal is inaccurate or incapable of verification; fails to verify the identity of the Player; or the Player violates the policies and procedures of the Licensee, the Licensee shall, within ten (10) calendar days, require the submission of additional information from the Player that can be used to remedy any violation or failure to verify the identity of the Player or funds deposit or withdrawal information of the Player. If such information is not provided or does not result in verification of the Player’s identity or deposit or withdrawal information, the Licensee shall: (a) Immediately suspend the Player’s Sports Gaming Account and not allow the Player to place Wagers; (b) Retain any winnings attributable to the Player; (c) Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and (d) Deactivate the account. (7) Licensees shall notify the Player of the establishment of the Sports Gaming Account by e-mail, text message, or first-class mail. Once a Sports Gaming Account is created, a secure personal identification (e.g., a unique username) for the Player authorized to use the Sports Gaming Account shall be established that is reasonably designed to prevent the unauthorized access to, or use of, the Sports Gaming Account by any individual other than the Player for whom the Sports Gaming Account is established. (8) A Player shall have only one (1) Sports Gaming Account for each Licensee. (9) A Sports Gaming Account may be funded using: (a) Debit cards; (b) Electronic bank transfers, including such transfers through third parties; (c) Online and mobile payment systems that support online money transfers; (d) Winnings or payouts; and (e) Any other method approved by the Council that is initiated with cash. Licensees must ensure that any method identified above is able to segregate and prevent the use of funding originating from credit cards. Licensees are permitted to utilize a global or single wallet functionality, but credit card funds in any global or single wallet must be segregated from usage in the state of Tennessee. (10) Funds may be withdrawn from a Player’s Sports Gaming Account as follows: SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (a) Wagers; (b) Cashier’s check, business check, wire transfer, or money order by the Licensee made payable to the Player and issued directly or delivered to the Player’s address on file with the Licensee; (c) Credits to the Player’s debit card, so long as that debit card has been registered in the Licensee’s system for at least forty-eight (48) hours; (d) Electronic bank transfers, including transfers through third parties; (e) Online and mobile payment systems that support online money transfers; or (f) Any other method approved by the Council. (11) A Player’s request for withdrawal of Player funds shall be completed within five (5) business days, unless another time is explicitly stated in the Licensee’s House Rules or Terms and Conditions, there is a pending unresolved dispute between Player and Licensee, or there is an indication of Unusual Wagering Activity or Suspicious Wagering Activity that is being actively investigated by the Licensee, the Council, a sports governing body, or a law enforcement agency. A Licensee may withhold funds from withdrawal until all funding transactions with the Player have cleared or the chargeback period ends. (12) All adjustments to a Player’s Sports Gaming Account for individual amounts of five hundred dollars ($500.00) or less shall be periodically reviewed by Key Personnel or his or her designee. All other adjustments shall be authorized by Key Personnel or his or her designee prior to being entered. Procedures for adjustments in accordance with this rule shall be included in the Licensee’s Internal Control Standards. (13) Licensees shall not allow the transfer of funds or credits between Players. (14) Each financial transaction with respect to a Sports Gaming Account between a Player and Licensee (including, but not limited to, a Cancelled Wager or a Voided Wager) must be confirmed by e-mail, telephone, text message, or other means agreed upon by the Player and Licensee. Licensees shall provide an account statement with details to a Player on demand, which shall include account activity for at least the six (6) months preceding the twenty-four (24) hours prior to the request. In addition, Licensees shall, upon request, be capable of providing to a Player a summary statement of all Player activity during the past twelve (12) months. (15) Licensees shall notify a Sports Gaming Account holder via e-mail, mail or other method approved by the Council, whenever the Sports Gaming Account holder’s Sports Gaming Account has been closed or placed in a suspended mode. Such notification shall include the restrictions placed on the Sports Gaming Account and any further course of action needed to remove the restriction. (16) Licensees shall suspend Wagers from being made and re-verify a Player’s identification within three (3) business days, unless the Executive Director approves a longer period of time, upon reasonable suspicion that the Player’s identification or Sports Gaming Account has been compromised. Licensees shall permit a Player to withdraw funds within five (5) business days after their identification has been re-verified. (17) Licensees shall offer a readily accessible method for a Player to close his or her Sports Gaming Account. Any balance remaining in a Player’s Sports Gaming Account closed by a Player shall be refunded within five (5) business days of notice from the Player to the Licensee, or pursuant to another time explicitly stated in the Licensee’s House Rules or Terms and Conditions. SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01 (18) Sports Gaming Systems shall employ a mechanism that can detect and prevent any Player- initiated Interactive Sports Gaming or withdrawal activity that would result in a negative balance of a Sports Gaming Account. (19) A Player’s Sports Gaming Account shall be disabled after three (3) failed log-in attempts and require Multi-Factor Authentication to recover a disabled Sports Gaming Account or reset a password. (20) A Licensee shall employ a mechanism that places a Sports Gaming Account in a suspended mode in the following situations: (a) When requested by the Player to implement a Voluntary Self-Exclusion or Account Cool- Off in accordance with the Licensee’s Responsible Gaming Plan as approved by the Council; (b) When required by the Council; (c) Upon the Licensee’s determination or notice from the Council that a Player is a Prohibited Participant; or (d) When the Licensee knows or has reason to know of any of the following: 1. Illegal activity; 2. A negative account balance; 3. Five (5) failed deposit attempts within a 30-minute period; or 4. A violation of the Terms and Conditions has taken place on a Player’s Sports Gaming Account. (21) When a Sports Wagering Account is in a suspended mode, the Player shall be prevented from: (a) Wagering; (b) Depositing funds, unless the reason for the deposit is to clear a negative balance that resulted in suspended mode; (c) Withdrawing funds, unless the reason for the suspended mode would not prohibit a withdrawal; (d) Making changes to the Sports Gaming Account; and (e) Closing the Sports Gaming Account. (22) A suspended Sports Gaming Account may be restored as follows: (a) Upon expiration of a suspension initiated by the Player; (b) Upon permission of the Council; (c) When the Player is no longer a Prohibited Participant; or (d) When the Licensee has lifted the suspended status. SPORTS GAMING LICENSE STANDARDS CHAPTER 1350-01