24 NCAC 06B .0302          Petition for a Category of Sporting Event or Wager Type

(a)  The Director shall have authority to review and approve proposed Wager Types and categories of Sporting Events before an Operator is permitted to offer the Wager to the public. A petitioner may petition the Director for approval of a new category of Sporting Event or Wager Type.

(b)  A proposed new Sporting Event or Wager Type may be a variation of an authorized Sporting Event or Wager Type, a composite of authorized Sporting Events or Wager Type, or a new Sporting Event or Wager Type.

(c)  A petition for a proposed new Sporting Event or Wager Type shall be in writing and shall include the following information:

(1)           the names and addresses of petitioners;

(2)           the name of the Sporting Event or Wager Type;

(3)           whether the Sporting Event or Wager Type is a variation of an authorized Sporting Event or Wager Type, a composite of authorized Sporting Events or Wager Type, or a new Sporting Event or Wager Type;

(4)           the name of the Operator serving as a sponsor of the proposed Sporting Event or Wager Type petition;

(5)           a complete and detailed description of the Sporting Event or Wager Type for which approval is sought, including:

(A)          a summary of the Sporting Event or Wager Type and how Sports Wagers would be placed and winning Sports Wagers would be determined;

(B)          a draft of the proposed Wagering Rules, including a description of technology that would be used to offer the Sporting Event or Wager Type;

(C)          Rules or voting procedures related to the Sporting Event or Wager Type, or existing Wagering Rules that would apply; and

(D)          assurance that the Sporting Event or Wager Type meets the requirements of Paragraph (d) of this Rule;

(6)           for the approval of an eSports Competition, complete information about:

(A)          the proposed locations of the eSports Competition;

(B)          the video game used for the eSports Competition, including, without limitation, the key role of game publishers as creators of the underlying video game;

(C)          the eSports Competition Operator, whether the eSports Competition Operator is approved to host events by the video game publisher, and whether the eSports Competition Operator has an affiliation with the video game publisher;

(D)          how the eSports Competition is conducted by the eSports Competition Operator, including, without limitation, eSports Competition rules; and

(E)           an explanation on how the eSports Competition meets the event integrity requirements of the Commission;

(7)           the name of the Sports Governing Body or equivalent;

(8)           to the extent known by the Operator, a description of its policies and procedures regarding event integrity; and

(9)           other information or material requested by the Director.

(d)  The Sporting Event or Wager Type being requested shall meet the following criteria before the request may be approved:

(1)           the outcome may be verified;

(2)           the outcome may be generated by a reliable and independent process;

(3)           the Sporting Event generating the outcome is conducted in a manner that ensures sufficient Integrity Monitoring controls exist so that the outcome may be trusted;

(4)           the outcome is not likely to be affected by a Sports Wager placed; and

(5)           the Sporting Event is conducted in conformity with applicable laws.

(e)  The Director shall approve or reject requests of categories of Sporting Events and wager types not later than 14 Days after the request is made. The Director will consider the request, materials and relevant input from the Sports Governing Body or equivalent, or the conductor of the Sporting Event , prior to authorizing a Sporting Event or Wager Type.

(f)  The Director may require an appropriate test or experimental period before granting final approval to a Sporting Event or Wager Type. The Director may subject technology that would be used to offer a Sporting Event or Wager Type to testing, investigation, and approval.

(g)  The Director may grant, deny, limit, restrict, or condition a request made pursuant to this Rule. The Director may issue an order revoking, suspending, or modifying an approval of a Sporting Event or Wager Type granted under this Rule for a cause the Director considers reasonable.

(h)  The Director shall notify Operators of additions, deletions, or changes regarding authorized Sporting Events and Wager Types. Once a particular category of Sporting Event or Wager Type is approved for its first use, it may be used on multiple events without further approval. The Commission may issue general approval for Operators to offer Wagers on enumerated categories of Sporting Events and Wager Types. Publishing an update to the Commission's Event Catalog on the Commission's website shall suffice for notice purposes.

(i)  The Commission and Director reserve the right to prohibit the acceptance of Sports Wagers and may order the cancellation of Sports Wagers and require refunds on a Sporting Event or Wager Type for which Wagering would be contrary to the public policies of the State.

(j)  If it is determined that an Operator has offered an unauthorized or prohibited Sporting Event or Wager Type, the Operator shall immediately cancel and refund Sports Wagers associated with the unauthorized or Prohibited Sporting Event or Wager Type. The Operator shall notify the Commission promptly after canceling and refunding the Sports Wagers. This notice shall include, without limitation, which Sports Wagers were canceled or refunded and the reasons for the cancellations or refund.

(k)  The Director may use information it considers appropriate, including, but not limited to, information received from a Sports Governing Body or equivalent, to determine whether to authorize or prohibit Wagering on a particular Sporting Event or Wager Type.

(l)  The Director may restrict, limit, or exclude Wagering on a Sporting Event or Wager Type if the Director determines that the restriction, limitation, or exclusion is required to ensure the integrity of the Operator.

 

History Note:        Authority G.S. 18C-114(a)(14);

Previously adopted as Rule 2C-002;

Eff. January 8, 2024;

Readopted Eff. March 27, 2024.