Tenn. Code § 4-49-102

Current through Acts 2023-2024, ch. 1069

Section 4-49-102 - Part definitions

As used in this part, unless the context otherwise requires:

(1) [Deleted by 2023 amendment.]

(2) "Bettor" means a person who is:

(A) Twenty-one (21) years of age or older;

(B) Physically present in this state when placing a wager with a licensee; and

(C) Not prohibited from placing a wager under § 4-49-112;

(3) "Bond" means a bond held in escrow for the purpose of maintaining adequate reserves to account for losses suffered by a licensee and owed to bettors;

(4) "Cancelled wager" means a wager that was legal and appropriate when originally placed by the bettor, but some event, circumstance, or occurrence prevents the wager from being unequivocally determined in accordance with the licensee's approved house rules or internal controls;

(5) "Cheating" means improving the chances of winning or of altering the outcome by deception, interference, or manipulation of a sporting event or of any equipment, including software pertaining to or used in relation to the equipment, used for or in connection with the sporting event on which wagers are placed or are invited, including attempts and conspiracy to cheat;

(6) "Collegiate" means belonging to, or involving, a public or private institution of higher education;

(7) "Collegiate sporting event" means a sporting or athletics event involving a sports or athletics team of a public or private institution of higher education;

(8) "Council" means the sports wagering council;

(9) "E-sport" means any multiplayer video game played competitively for spectators, either in-person or via remote connection, in which success principally depends upon the superior knowledge, training, experience, and adroitness of the players;

(10) "Fixed-odds betting" means bets made at predetermined odds or on the spread where the return to the bettor is unaffected by any later change in odds or the spread;

(11) "Future bet" means a wager made on the occurrence of an event in the future relating to a sporting event;

(12) "Gross handle" means the total amount of gross wagers less cancelled or voided wagers received by the licensee over a specified period of time;

(13) "Gross wager":

(A) Means all cash and promotional wagers received by licensees from bettors as wagers; and

(B) Includes all wagers placed with cash, cash equivalents, promotional items, and all other media by which a bettor is allowed to place a wager;

(14) "Interactive sports wagering" means placing a wager on a sporting event via the internet, a mobile device, or other telecommunications platform;

(15) "Key personnel" means individuals who have the power to exercise significant influence over sports wagering in this state and who are associated with the applicant for licensure or registration as:

(i) A principal owner of more than five percent (5%) of the applicant;

(ii) A partner of the applicant, voting member on the board of directors of the applicant, or an officer of the applicant, as those terms are defined in title 48 or 61, as applicable; or

(iii) An employee of the applicant who principally oversees wagering activity, risk management, platform management, or integrity monitoring;

(16) "License" means a license to accept wagers from bettors on sporting events issued under § 4-49-117;

(17) "Licensee" means a person who holds a license issued under § 4-49-117;

(18) "Live betting" means a type of wager that is placed after the sporting event being wagered on has commenced and whose odds on events occurring are adjusted in real time;

(19) "Minor" means a person who is less than twenty-one (21) years of age;

(20) "Money line wager" means a wager on the outcome of a sporting event outright, with fixed odds in relation to the dollar amount wagered;

(21) "Obvious error" means either a human or technical error that results in a licensee offering wagers at terms, prices, or odds that are materially different from the general market or clearly incorrect given the chance of the event happening at the time the wager was accepted;

(22) [Deleted by 2023 amendment.]

(23) "Online sports wagering platform" means the combination of hardware, software, and data networks used to manage, administer, or control sports wagering and any associated wagers accessible by any electronic means, including mobile applications and internet websites accessed via a mobile device or computer;

(24) "Pari-mutuel betting" means a type of bet in which all wagers on a particular occurrence are pooled and winnings are paid in accordance with the size of the pool and the number of winners;

(25) "Parlay bet" means a single wager that incorporates two (2) or more individual bets for purposes of earning a higher payout if each bet incorporated within the wager wins;

(26) "Person" means an individual, group of individuals, trust, or business entity;

(27) [Deleted by 2023 amendment.]

(28) "Promotional payout" means a payout by a licensee to a bettor in a form that cannot be immediately withdrawn by the bettor as cash;

(29) "Promotional wager" means a wager placed by a licensee using a bonus or other non-cash item;

(30) "Proposition bet" means a wager made regarding the occurrence or nonoccurrence during a sporting event of an event that does not directly affect the final outcome of the sporting event;

(31) "Registrant" means a person who holds a registration issued under § 4-49-133;

(32) "Resettled wager" means a wager that was settled incorrectly by a licensee due to a statistical correction, technical error, or human error;

(33) "Sporting event" means any professional sporting or athletic event, including motorsports and e-sports, any collegiate sporting or athletic event, or any Olympic sporting or athletic event sanctioned by a national or international organization or association. "Sporting event" does not include horse racing;

(34) "Sports governing body" means the organization, league, or association that oversees a sport and prescribes final rules and enforces codes of conduct with respect to such sport and participants therein;

(35) "Spread" means the predicted scoring differential between two (2) persons or teams engaged in a sporting event;

(36) "Supervisory employee" means a principal or employee having the authority to act on behalf of a licensee or whose judgment is being relied upon to manage and advance the business operations of a licensee;

(37)

(A) "Vendor" means a person who:

(i) Provides one (1) or more of the following:

(a) Geolocation services;

(b) Online sports wagering platform software;

(c) Patron account management services/software;

(d) Sportsbook risk management or odds-making services or software;

(e) Sports data feeds or software, including official league data feeds and software;

(f) "Know your customer" or "KYC" software or services; or

(g) Payment processing services;

(ii) Serves as an independent testing laboratory to assess interactive sports wagering platforms, integrity or security;

(iii) Has direct interface or interaction with patron accounts or interactive sports wagering platforms, as determined by the council;

(iv) Receives payment or compensation based on a revenue sharing agreement in which the vendor receives a percentage of the adjusted gross income of a licensee; or

(v) Provides similar services that are material to conducting interactive sports wagering, as determined by the council; and

(B) "Vendor" does not include marketing affiliates who are compensated by a method other than a revenue sharing agreement;

(38) "Voided wager" means a wager that a licensee voids after acceptance because the wager is determined by the licensee, the council, or the executive director to be prohibited under this chapter, rules promulgated by the council, other state laws, or prohibited or otherwise invalid pursuant to the licensee's approved house rules or internal controls; and

(39) "Wager" or "bet" means a sum of money that is risked by a bettor on the unknown outcome of one (1) or more sporting events, including, but not limited to, the form of fixed-odds betting, a future bet, live betting, a money line bet, pari-mutuel betting, parlay bet, pools, proposition bet, spread bet, or in any other form or manner as authorized by rule promulgated by the council.

T.C.A. § 4-49-102

Amended by 2023 Tenn. Acts, ch. 450, s 40, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 34, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 6, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 5, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 4, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 3, eff. 7/1/2023.

Amended by 2023 Tenn. Acts, ch. 450, s 2, eff. 7/1/2023.

Renumbered from T.C.A. s 4-51-302by 2021 Tenn. Acts, ch. 593, s 30, eff. 1/1/2022.

Amended by 2021 Tenn. Acts, ch. 593, s 27, eff. 1/1/2022.

Amended by 2021 Tenn. Acts, ch. 593, s 1, eff. 1/1/2022.

Added by 2019 Tenn. Acts, ch. 507, s 1, eff. 7/1/2019.