Annual Reporting And Audits

(1) Annual Reports. No later than the first day of the fifth month following the close of the Fantasy sports operator’s fiscal year in which the Fantasy sports operator was licensed, the Fantasy sports operator shall submit a report to the Sports Wagering Council containing the following information and documents pertaining to the prior fiscal year, or the portion of the prior fiscal year in which the Fantasy sports operator was licensed: (a) Tennessee consumer account information. The following information shall be submitted electronically (in either a Microsoft Excel spreadsheet or a Microsoft Access database) contained on a removable media device, e.g., a flash drive. 1. The total number of Tennessee consumer accounts, broken down by beginning fantasy sports players and highly experienced fantasy sports players; 2. The number of new accounts established by Tennessee consumers; 3. The number of accounts closed by Tennessee consumers; 4. The total amount of entry fees received from Tennessee consumers; 5. The total amount of prizes awarded to Tennessee consumers; 6. The number of Tennessee consumers who requested a deposit limit increase; 7. The number of deposit limit increases granted to Tennessee consumers; 8. The number of accounts in which a Tennessee consumer was identified as a minor and the action taken as a result; 9. The number and amount of refunds given to Tennessee consumers; 10. The number of Tennessee consumers who requested additional limitations on their accounts pursuant to T.C.A. § 4-49-205(a)(11), and the action taken as a result; and 11. The number of Tennessee consumers who requested that their accounts be permanently closed. (b) The total amount of all winnings earned by fantasy sports players on online platforms supported by the Fantasy sports operators. (2) Audit Reports. No later than the first day of the seventh month following the close of the Fantasy sports operator’s fiscal year in which the Fantasy sports operator was licensed, the Fantasy sports operator shall submit a full and complete copy of the audit prepared pursuant to T.C.A. § 4-49-204. This audit shall include two components, a financial audit and a compliance audit as described below. (a) Financial audit. The Fantasy sports operator shall submit a financial audit, prepared by a certified public accountant consistent with the attestation standards established by the American Institute of Certified Public Accountants, of the Fantasy sports operator’s RULES RELATED TO THE FANTASY SPORTS ACT CHAPTER 1350-05 (Rule 1350-05-.11 continued) financial operations and handling of player accounts and funds pursuant to the Fantasy Sports Act. (b) Compliance audit. The Fantasy sports operator shall submit a performance audit, prepared by a certified public accountant, testing laboratory, or other professional service provider recognized by the Sports Wagering Council, to verify compliance with the operational aspects of the Fantasy Sports Act, including those set forth in T.C.A. § 4-49- 205, and to verify the integrity of the computer operating systems used to operate the fantasy sports contests. 1. The Sports Wagering Council will post the names of entities approved to conduct compliance audits on its website. 2. A Fantasy sports operator can seek recognition of an alternative professional service provider for use in completing the compliance audit by submitting a written request to the Sports Wagering Council. The Sports Wagering Council will review the qualifications and experience of the professional service provider and determine whether to recognize that entity as an approved provider.