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Can I offer contests that involve college sports in Tennessee? What are the requirements?

Based on the information provided in the context documents, it is prohibited to offer fantasy sports contests based on high school or college sporting events or sports whose participants are predominantly minors in Tennessee. Fantasy sports operators shall not knowingly offer fantasy sports contests based on high school or college sporting events or sports whose participants are predominantly minors. For purposes of this subdivision (a)(5), “predominantly” means greater than fifty percent (50%). [2.1]

However, it is possible to offer fantasy sports contests in Tennessee if the operator is licensed by the Secretary of State and meets certain requirements. The applicant shall provide sufficient documentation to the secretary of state to assure that such applicant meets the requirements for licensure, including, but not limited to: (1) The name of the applicant; (2) The location of the applicant’s principal place of business; (3) A complete disclosure of the true ownership of the applicant, as determined by the secretary of state; (4) The applicant’s criminal record, if any, or if the applicant is a business entity, the criminal records, if any, of any person owning a significant ownership interest in the applicant, as determined through rule by the secretary of state; (5) Any ownership interest held by a director, officer, policy-making manager, or principal stockholder in any entity previously or currently licensed by another entity that licenses fantasy sports operators or similar entities; (6) A description of any physical facility operated by the fantasy sports operator in this state, the facility’s employees, and the nature of the facility’s business; (7) Information sufficient to show, as determined by the secretary of state, that the applicant: (A) Limits individual player deposits to no more than two thousand five hundred dollars ($2,500) per month, unless the player provides reasonable certification or proof, including the types of certifications used to qualify accredited investors as defined in § 48-1-102, to the fantasy sports operator that the player’s deposit limit should be increased; (B) Protects player funds on deposit by, at a minimum: (i) Segregating player funds from operating funds; and (ii) (a) Maintaining a reserve for the benefit and protection of authorized players’ funds in fantasy sports accounts; (b) The amount and form of the reserve shall be set forth in rules promulgated by the secretary of state; and (C) Limits each player to one (1) active and continuously used account by: (i) Verifying each player’s true identity and location using commercially reasonable means; (ii) Closing each account previously held by a player when a new account is opened by that same player while carrying over any designations applicable to that account; (iii) Using technologically reasonable measures to prevent the use of proxy servers; and (iv) Using technologically reasonable measures to detect and prevent the use of a player’s account by other players; (8) Information sufficient to show that the applicant is in good standing with the department of revenue; and (9) Any other information the secretary of state deems necessary. [2.3][3.1]

Therefore, if you want to offer fantasy sports contests in Tennessee, you must obtain a license from the Secretary of State and meet the requirements listed above. However, offering contests that involve college sports is still prohibited. [2.1]

Source(s):
Jurisdiction

Tennessee