24 NCAC 06B .0308          Tournaments, Contests, and Pools

(a)  No Sports Wagering tournament, contest, or Pool shall be conducted unless the Operator, before the first time a tournament, contest, or Pool type is offered, files written notice with the Director of its intent to offer that tournament, contest, or Pool type and obtains approval from the Director.

(b)  The Operator's request shall provide a detailed description of the tournament, contest, or Pool type and shall include the rules of the tournament, contest, or Pool, the requirements for entry, the entry fees, the Rake, and potential payouts. The request shall also indicate whether the proposed type involves a Shared Liquidity Pool available to Players in North Carolina and other jurisdictions with the Prize Pool being comprised of entry fees collected from Players in multiple jurisdictions.

(c)  The request shall be submitted to the Director in writing via electronic mail. Requests shall be submitted at least 14 Days prior to start date of the tournament, contest, or Pool.

(d)  Once an Operator receives approval to offer a tournament, contest, or Pool type the Operator shall not be required to seek additional approvals from the Director for subsequent types of tournament, contest, or pool offerings that differ from the approved request only with respect to the size, number of entries permitted, entry fee, or prize structure, or other minor variations as allowed by the Director.

(e)  The Operator shall maintain a record of tournaments, contests, or Pools it offers, which shall address the:

(1)           name or identification of the tournament, contest, or Pool;

(2)           date and time the tournament, contest, or Pool occurred or will occur, if known;

(3)           Sporting Events and Wager Type;

(4)           rules concerning tournament, contest, or Pool play and participation; and

(5)           for participating Players:

(A)          unique Player identification;

(B)          amount of entry fee collected, including promotional or bonus credits, and the date collected;

(C)          Player scorings or rankings; and

(D)          amount of payouts paid, including promotional or bonus credits, and the date paid;

(6)           total amount of entry fees collected, including promotional or bonus credits;

(7)           total amount of payouts paid to Players, including promotional or bonus credits;

(8)           total Rake, takeout, or fees collected;

(9)           funding source amount or amounts comprising the Prize Pool;

(10)         prize structure on payout;

(11)         methodology for determining winner or winners; and

(12)         current status of the tournament, contest, or Pool.

(f)  The Operator shall be responsible for determining the Rake. The Operator's Rake collected from Players that enter a contest, tournament, or Pool while located in the State less any Rake Adjustment, if applicable, shall be considered, without any other deductions, Gross Wagering Revenue and is subject to tax requirements outlined in the Act and these Rules.

(1)           At no time shall the calculation resulting from a Rake or Rake Adjustment be negative.

(2)           For a contest, tournament, or Pool which uses shared liquidity available to Players in North Carolina and other jurisdictions, the Rake rate shall be the same for each of the jurisdictions participating.

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

Previously adopted as Rule 2C-008;

Eff. January 8, 2024;

Readopted Eff. March 27, 2024.