Ohio Administrative Code 3770:3 — State Lottery Commission | Sports Gaming

Chapter 3770:3-3 Lottery Sports Gaming

Ohio Adm.Code 3770:3-3-01 Authority and purpose.

(A) The rules set forth in division 3770:3 of the Administrative Code are promulgated under the authority of Chapters 3770. and 3775. of the Revised Code.

(B) The purpose of division 3770:3 of the Administrative Code is to set forth rules concerning lottery sports gaming, type C sports gaming hosts, and type C sports gaming proprietors, and all matters related thereto.

(C) The lottery has exclusive jurisdiction over all matters within the scope of its authority, and nothing contained in division 3770:3 of the Administrative Code will be construed to limit the authority or the ability of the lottery to act hereunder.

Last updated September 26, 2022 at 8:44 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-3-02 Definitions.

(A) The words and terms defined in section 3770.24 of the Revised Code are used herein as they are defined in that section, unless otherwise specified.

(B) As used in Chapter 3775. of the Revised Code and rules adopted thereunder, the following words have the following meanings:

(1) "Lottery sports gaming" means sports gaming conducted by a type C sports gaming proprietor on behalf of the Ohio lottery commission.

(2) "Type C sports gaming proprietor" means a sports gaming proprietor licensed by the Ohio casino control commission to offer sports gaming through self-service or clerk-operated sports gaming terminals located at type C sports gaming hosts facilities.

(3) "Type C sports gaming host" means the owner of a facility with a A-1-A, A-1-C, D-1, D-2, or D-5 liquor permit issued under Chapter 4303. of the Revised Code, who is licensed by the Ohio casino control commission to offer sports gaming at that facility through a type C sports gaming proprietor.

Last updated May 20, 2024 at 8:40 AM

History

• Effective: May 20, 2024
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-3-03 Type C sports gaming host eligibility and application for lottery recommendation.

(A) Application for a recommendation for a type C sports gaming host must be submitted in accordance with procedures and terms and conditions set forth by the director and will be made on a form approved by the director. At a minimum, applicants will be in compliance with the licensing requirements for a lottery sales agent under section 3770.05 of the Revised Code and an owner of a facility with a A-1-A, A-1-C, D-1, D-2, or D-5 liquor permit issued under Chapter 4303. of the Revised Code.

(B) Upon receiving a proper and complete request for recommendation, the director will determine if the lottery sales agent meets the requirements for recommendation. The director may issue the recommendation on such terms and conditions as the director deems appropriate, consistent with the Lottery Act, the rules of the Ohio lottery commission and these regulations and any policies, procedures and operating standards related thereto. If the director denies a recommendation, the lottery sales agent will be promptly informed of the decision.

(C) The director will inform the Ohio casino control commission of the status of lottery sales agents and any changes thereto.

(D) Any lottery sales agent may apply to the Ohio casino control commission to offer lottery sports gaming upon receiving a recommendation from the director submitted in a format approved by the director.

Last updated May 20, 2024 at 8:40 AM

History

• Effective: May 20, 2024
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-3-04 Type C lottery sports gaming host operations; equipment; advertising and promotions.

(A) A type C sports gaming host must obtain lottery sports gaming equipment and supplies from a licensed type C sports gaming proprietor, subject to approval by the director.

(B) A type C sports gaming host will provide the lottery with locations for placement of lottery sports gaming self-service terminals, subject to approval by the director.

(C) Unless otherwise approved by the director, no type C sports gaming host will have more than two self-service terminals operational at the licensed facility.

(D) The director may prohibit type C sports gaming hosts from engaging in certain advertising and promotions deemed by the director to be inappropriate.

(E) Unless otherwise approved by the director, any costs associated with advertising or promotions initiated by the type C sports gaming host are the responsibility of the type C sports gaming host.

(F) The director may initiate advertising and promotional programs related to lottery sports gaming and/or any lottery product and may provide type C sports gaming host with such materials if deemed necessary.

(G) Responsible gambling materials provided by the lottery or type C sports gaming proprietor must be prominently displayed.

(H) The lottery office of security personnel will have unrestricted access to all areas of type C sports gaming host facility and records. Each type C sports gaming host must timely comply with all requests from the lottery.

(I) A type C sports gaming host will only accept wagers from a patron who is over twenty-one years of age and who is physically present on the premises of the facility.

Last updated September 26, 2022 at 8:44 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Chapter 3770:3-5 Type C Sports Gaming Proprietor Duties

Ohio Adm.Code 3770:3-5-01 Type C sports gaming proprietor duties.

(A) An entity interested in offering lottery sports gaming may apply for a type C sports gaming proprietor license through the Ohio casino control commission.

(B) Upon issuance of a license, a type C sports gaming proprietor will be obligated to comply with the applicable provisions of the Lottery Act, all rules, regulations, policies and directives of the commission or director and all terms and conditions of the license as set forth in the application, or any amendments or modifications thereto. Failure to comply with any and all obligations required of a type C sports gaming proprietor may subject the sports gaming proprietor's type C sports gaming proprietor license to be sanctioned under section 3772.04 of the Revised Code and rule 3775-1-08 of the Administrative Code.

(C) A licensed type C sports gaming proprietor will notify the director of the type C sports gaming hosts that they intend to partner with and any changes to partner status.

(D) A type C sports gaming proprietor who wishes to install more than two terminals in any type C sports gaming host facility must submit a request to the director no later than seven days before the planned installation. The director may disallow the installment if it would undermine the integrity of sports gaming in this state.

(E) A type C sports gaming proprietor must notify the director of any changes to the location of equipment within a type C sports gaming host facility in which the type C sports gaming host intends to conduct sports gaming.

(F) A type C sports gaming proprietor must submit and maintain procedures designed to detect and prohibit underage individuals, or voluntarily or involuntarily excluded individuals from participating in lottery sports gaming, including the digital examination of the patron's identity using identification verification software approved by the director.

(G) A type C sport gaming proprietor must submit and maintain procedures designed to enforce wager limits as established in section 3770.25 of the Revised Code.

(H) Type C sports gaming proprietors must comply with any sports gaming rules adopted by the state lottery commission under Chapters 3770. and 3775. of the Revised Code. A type C sports gaming proprietor must comply with Chapters 3775-11, 3775-14, and 3775-15 of the Revised Code and rules 3775-16-02, 3775-16-03, 3775-16-06, 3775-16-07, 3775-16-11, 3775-16-12, 3775-16-13, 3775-16-14, 3775-16-16, 3775-16-19, and 3775-16-20 of the Administrative Code.

(I) In addition to any contractual remedies the state lottery commission may pursue, failure of a type C sports gaming proprietor to adhere to Chapter 3770. or 3775. of the Revised Code, or any applicable rules adopted thereunder, may subject the type C sports gaming proprietor to sanctions under section 3772.04 of the Revised Code and rule 3775-1-08 of the Administrative Code.

Last updated September 26, 2022 at 8:45 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3775-1-08

(A) The commission, at a meeting held under section 3772.02 of the Revised Code, may discipline any licensee, applicant, or other person subject to the jurisdiction of the commission pursuant to Chapter 3775. of the Revised Code for any of the following:

(1) Violating or failing to meet any provision or requirement of Chapter 3772. or 3775. of the Revised Code or any rules adopted thereunder;

(2) Engaging in any material or intentional misrepresentation or material omission;

(3) Engaging in any fraudulent act;

(4) Failing to cooperate with the commission;

(5) Failing to comply with all the terms and conditions of a settlement agreement or agreed order with the commission, and any subsequent amendment or modification;

(6) Failing to comply with the terms and conditions of a commission order or resolution, or any subsequent amendment or modification;

(7) Failing to allow the commission access to records as required under Chapter 3775. of the Revised Code and the rules adopted thereunder, to comply with the terms of a subpoena issued by the commission, or to testify on matters about which the person may be lawfully questioned; or

(8) Engaging in any conduct that undermines the integrity of, or public's confidence in, sports gaming in this state.

(B) The commission, at a meeting held under section 3772.02 of the Revised Code, has the authority to impose any discipline set forth in Chapter 3772. or 3775. of the Revised Code and any rules adopted thereunder, including any of the following:

(1) Denial, non-renewal, revocation, suspension, conditioning, or restriction of a license;

(2) Revocation, suspension, or restriction of the sports gaming operations of a sports gaming proprietor;

(3) A monetary fine;

(4) A monetary civil penalty; or

(5) Any other discipline imposed upon or agreed to by a licensee, applicant, or any other person.

(C) Without in any manner limiting the authority of the commission to impose the level and type of sanction it may consider appropriate, the commission may take into consideration:

(1) The risk to the public and to the integrity of sports gaming in this state;

(2) Any criteria or factor listed in Chapter 3772. or 3775. of the Revised Code and any rules adopted thereunder; or

(3) Any other factors the commission may consider relevant.

(D) If the alleged violation is the result of, or results in, the unlawful obtainment or retention of any money or property, the commission may, in addition to any other penalty or fine levied under Chapter 3772. or 3775. of the Revised Code or any rules adopted thereunder, impose a civil penalty or fine in an amount equal to the money or value of the property that was unlawfully obtained or retained.

(E) Any person issued an occupational license under Chapter 3775. of the Revised Code and the rules adopted thereunder whose employment has been terminated is subject to revocation of his or her license for any act or failure to act that occurred while employed.

(F) The commission is not precluded from finding multiple violations within a day, if each violation is the result of separate and distinct acts.

(G) The commission may hold applicants, licensees, or other persons jointly and severally liable for violations of Chapter 3772. or 3775. of the Revised Code and the rules adopted thereunder.

Last updated June 15, 2022 at 9:46 AM

History

• Effective: June 15, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3775-16-02

(A) The responsible licensee for each sports gaming system must implement change management policies and procedures for tracking and controlling changes made to the system. The change management policies and procedures must include:

(1) Procedures for testing proposed changes in a non-production environment. The non-production environment must be segregated from the production environment and not have the capability to alter data in the production environment;

(2) Procedures for the classification of changes in accordance with paragraph (B) of this rule;

(3) Procedures for the installation of changes into the production environment;

(4) Procedures for the rollback of changes;

(5) Procedures for documenting each phase of the change management process;

(6) Procedures for logging all changes to the system; and

(7) Policies to ensure appropriate segregation of duties to prevent unintended changes from occurring.

(B) Changes made to sports gaming systems must be reviewed and classified by the responsible licensee as follows:

(1) "High Impact" is any change to, or addition of, components which impact the operational integrity of the system. Components include, but are not limited to, any component deemed to be critical by the certified independent test lab.

(2) "Low Impact" is any other change to the sports gaming system.

(C) High Impact changes require commission notification at least five business days prior to installation. The installation may be denied or delayed at the discretion of the executive director.

(D) Changes made to the sports gaming system that are necessary to remediate an immediate threat or liability may be installed immediately. The commission must be notified of the change within forty-eight hours of implementation.

(E) The executive director may require any changes be tested by a certified independent testing laboratory, with testing completed and a testing laboratory letter provided to the commission within ninety days.

Last updated August 15, 2022 at 8:43 AM

History

• Effective: August 15, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-5-02 Required procedures.

(A) Type C sports gaming proprietors must have procedures for the applicable processes required by Chapters 3770. and 3775. of the Revised Code and the rules adopted thereunder that must be designed to protect the integrity of sports gaming. These procedures must be documented and maintained by the type C sports gaming proprietor in a form prescribed by the director.

(B) The current version of the type C sports gaming proprietors' required procedures must always be on file or otherwise immediately available to the director.

(C) A type C sports gaming proprietor must submit its required procedures to the director in a manner and form required by the director and receive approval from the director prior to offering lottery sports gaming.

(D) Any proposed changes to the required procedures must be approved by the director prior to implementation. If the type C sports gaming proprietor has not received a response from the director regarding the proposed changes within five business days, the changes will be deemed approved.

(E) The director may, at any time, require a change to the required procedures in order to ensure compliance with Chapters 3770. and 3775. of the Revised Code and the rules adopted thereunder.

Last updated September 26, 2022 at 8:45 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-5-03 House rules.

(A) Each type C sports gaming proprietor must have house rules to govern its offerings of sports gaming in accordance with section 3770.25 of the Revised Code. The house rules must be readily available and easily accessible on each sports gaming proprietor's website, mobile application, and at all lottery sports gaming facilities. House rules must address:

(1) Types of wagers accepted;

(2) Method for calculation and payment of winning sports wagers;

(3) Effect of scheduling changes and/or canceled sporting events;

(4) Process for handing incorrectly posted sporting events, odds, or results;

(5) Method of notifying patrons of odds or proposition changes;

(6) Methods of funding a wager or sports gaming account;

(7) Methods for redeeming a winning sports wager;

(8) Lost or damaged ticket policy;

(9) Expiration of any winning ticket one hundred eighty days after the date the ticket outcome is determined;

(10) Process for accepting sports wagers at other than posted terms;

(11) Process for canceling sports wagers for obvious errors, including notification;

(12) Process for contacting the sports gaming proprietor to submit questions and/or complaints;

(13) Notification of the patron dispute process;

(14) Notification to patrons of the voluntary exclusion program; and

(15) Any other house rules required by the director.

(B) The current version of each type C sports gaming proprietor's house rules must always be available in a manner prescribed by the director.

(C) A type C sports gaming proprietor must submit its house rules to the director and receive approval from the director prior to offering sports gaming.

(D) Any proposed changes to the house rules must be approved by the director prior to implementation. If the sports gaming proprietor has not received a response from the director regarding the proposed changes within five days, the changes will be deemed approved.

(E) The director may, at any time, require a change to the house rules in order to ensure compliance with Chapters 3770. and 3775. of the Revised Code or the rules adopted thereunder.

Last updated October 28, 2022 at 5:07 AM

History

• Effective: October 27, 2022
• Promulgated Under: 119.03

Chapter 3770:3-6 Information Technology Requirements for Type C Sports Gaming Proprietors

Ohio Adm.Code 3770:3-6-01 Sports gaming systems.

(A) Type C sports gaming proprietors must use a sports gaming system approved by the director. No wagers may be accepted in the event of a system failure or unavailability.

(B) Type C sports gaming proprietors must use a sports gaming system designed to prevent and detect the following:

(1) Unauthorized use of an account by someone other than the account holder;

(2) Unauthorized withdrawals from patron accounts;

(3) Wagering by persons under the age of twenty-one;

(4) Wagering by members of the involuntary or voluntary exclusion lists; and

(5) Wagering by other prohibited persons.

(C) Type C sports gaming proprietors must have procedures governing its sports gaming system. The procedures must include:

(1) ) A description of, and the inter-relationships and dependencies of, the sports gaming system, hardware, software, and all integrated supplier modules;

(2) A description of physical and logical security of the sports gaming servers;

(3) How it will respond to a failure of the sports gaming system;

(4) Risk management procedures;

(5) Change management procedures;

(6) Procedures for complying with the data match requirements and procedures of section 3770.07 of the Revised Code; and

(7) Procedures for the prevention and detection of attempts to launder currency.

(D) Each Type C sports gaming proprietor must provide read-only remote access to its sports gaming systems and any hardware or software required to facilitate this access to the Ohio lottery commission in a manner prescribed by the director. All costs associated with providing this access are the sole responsibility of the sports gaming proprietor.

(E) Each Type C sports gaming proprietor must test the recovery procedures of the sports gaming system on a sample basis at least annually. The results must be documented and available to the Ohio lottery commission upon request.

Last updated October 28, 2022 at 5:07 AM

History

• Effective: October 27, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-6-02 Information technology.

(A) Type C sports gaming proprietors must maintain an information technology department that is responsible for the quality, reliability, and accuracy of all electronic systems used in the operation.

(B) Type C sports gaming proprietors must ensure that duties in the information technology department are adequately segregated and monitored to detect procedural errors, unauthorized access to financial transactions and assets, and to prevent the concealment of fraud.

(C) The information technology environment and infrastructure must be maintained in a secured physical location that is restricted to authorized employees.

(D) Type C sports gaming proprietors must adopt procedures for responding to, monitoring, investigating, resolving, documenting, and reporting security incidents associated with information technology systems.

Last updated September 26, 2022 at 8:45 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-6-03 Lottery sports gaming equipment approval and testing.

(A) Type C sports gaming proprietors are not permitted to operate any Ohio lottery commission sports gaming equipment unless such equipment is approved by the director. All Ohio lottery commission sports gaming equipment must be evaluated by a certified independent testing laboratory prior to approval, unless otherwise approved by the director.

(B) When Ohio lottery commission sports gaming equipment is required to be tested by a certified independent testing laboratory, the type C sports gaming proprietor making the submission must adhere to the following:

(1) Submit a written request to a certified independent testing laboratory that, at a minimum, specifically references the scientific testing and technical evaluation necessary to determine compliance with Chapters 3770. and 3775. of the Revised Code and the rules adopted thereunder, as well as the applicable standards in the appendix to this rule, and identifies the sports gaming equipment at issue;

(2) Submit all necessary items and information to the certified independent testing laboratory;

(3) Pay all costs associated with the scientific testing and technical evaluation performed by the certified independent testing laboratory;

(4) Engage no more than one certified independent testing laboratory to perform scientific testing and technical evaluation of any particular version of sports gaming equipment software, hardware, or other technology without prior written authorization from the director; and

(5) Submit any items or information pertaining to the Ohio lottery commission sports gaming equipment to the director, if requested.

(C) The director may require previously approved Ohio lottery commission sports gaming equipment to be evaluated or re-evaluated by a certified independent testing laboratory if it is determined that the equipment fails to meet any of the requirements of Chapters 3770. and 3775. of the Revised Code or the rules adopted thereunder or jeopardizes the integrity of sports gaming in any way.

(D) Sports gaming equipment tested by a certified independent testing laboratory will not be included in the Ohio lottery commission's database unless the director approves the test results.

(E) Sports gaming equipment software components deemed to be critical must be capable of verification utilizing a verification method approved by the director.

View Appendix

Last updated May 20, 2024 at 8:40 AM

History

• Effective: May 20, 2024
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-6-04 Type C sports gaming proprietor equipment for hosts.

(A) Sports gaming equipment supplied by a type C sports gaming proprietor to a type C sports gaming host must comply with technical standards as set forth in rule 3770:3-6-03 of the Administrative Code.

(B) A type C sports gaming proprietor is responsible for all costs associated with the acquisition, maintenance, repair, and service of the sports gaming equipment and sports gaming systems as necessary and as required in order to ensure continued operation of lottery sports gaming.

(C) A type C sports gaming proprietor must notify the Ohio lottery commission prior to installation of equipment at a type C sports gaming host location.

(D) A type C sports gaming proprietor must operate a technical support program to support type C sports gaming hosts, as approved by the director. This will include the ability for the type C sports gaming host to report machine performance issues, dispatch repairs, request clerk training and any other needed support. A type C sports gaming proprietor may be required to report on the field service program including type C sports gaming host complaints, resolution, and dispatch response times to the Ohio lottery commission.

(E) A type C sports gaming proprietor must provide ticket stock, bet sheets, and other consumables to support lottery sports gaming.

Last updated October 28, 2022 at 5:07 AM

History

• Effective: October 27, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-6-05 Incident Reporting.

(A) Type C sports gaming proprietors must immediately report, in a manner prescribed by the director, any information in the sports gaming proprietors' possession related to any of the following incidents:

(1) Any wager in violation of Chapters 3770. and 3775. of the Revised Code or the rules adopted thereunder or of federal law;

(2) Any conduct that corrupts a betting outcome of a sporting event for purposes of financial gain;

(3) Any IT security breach or other compromising IT risk;

(4) Any breaches of confidentiality of a player's personal information;

(5) Any physical security breach or other compromising risk to players, employees, or the Ohio lottery commission; and

(6) Any other incident type required by the director.

(B) Type C sports gaming proprietors must have procedures to prevent, detect, and report to the director attempts to launder money through any of its Ohio licensed sports gaming offerings.

Last updated October 28, 2022 at 5:07 AM

History

• Effective: October 27, 2022
• Promulgated Under: 119.03

Chapter 3770:3-7 Type C Sports Gaming Proprietor Wagering Rules

Ohio Adm.Code 3770:3-7-01 Wager rules.

(A) All Ohio lottery commission sports gaming wagers must only be accepted in accordance with section 3770.25 of the Revised Code on events as authorized under rule 3775-11-01 of the Administrative Code.

(B) Ohio lottery commission sports gaming wagers are limited to moneyline; over-under; spread bet types and parlay wagers that are based on not more than four component wagers.

(C) Ohio lottery commission sports gaming wagers may be funded by cash, credit card, debit card, or electronic payment accounts. No single wager may exceed seven hundred dollars.

(D) Ohio lottery commission sports gaming wagers may only be accepted from individuals physically present at the sports gaming facility and not known to be included on any exclusion or prohibited lists.

(E) An Ohio lottery commission sports gaming wager must not be knowingly accepted from a player who is placing the sports wager for the benefit of another or is placing the sports wager in violation of state or federal law.

(F) An Ohio lottery commission sports gaming wager must not be accepted on events for which the outcome has already been determined.

(G) A type C sports gaming proprietor may, but need not, cancel an accepted wager for obvious error as defined in the proprietor's house rules. If a wager is canceled for obvious error, the sports gaming proprietor must clearly convey the reason for cancellation to the player.

(H) Except for obvious error, the type C sports gaming proprietor must not unilaterally cancel any wager without prior written approval of the director.

(I) If a player wishes to void a ticket written prior to the start of an event, and the void request is approved by the type C sports gaming proprietor, the ticket must be verified by the sports wagering system and a refund must be given to the player.

Last updated September 26, 2022 at 8:45 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3775-11-01

(A) A catalogue of approved sporting events and wager types is to be maintained by the commission and made readily available on the commission's website. Sports gaming proprietors must not offer wagering on any sporting events or wager types not listed in the approved catalogue.

(B) Sports gaming proprietors may submit a request to the executive director to add a sporting event or wager type to the approved catalogue. The request must be made at least three business days before the first requested use of the proposed additional sporting event or wager type. The executive director will prescribe the format for any requests submitted.

(C) Any requested additions or changes to the catalogue will be reviewed and approved or denied by the executive director. If the proprietor has not received a response from the executive director regarding the proposed changes within three business days, the changes will be deemed approved.

(D) A sports governing body may submit a request to the executive director to prohibit or restrict wagering on any sporting event or wager type. All licensed sports gaming proprietors must be copied on this request, in the manner prescribed by the executive director. The executive director, in their sole discretion, will determine whether the sports governing body has shown good cause to grant the requested prohibition or restriction. Sports gaming proprietors may submit comments to the executive director which must be considered in the determination of good cause. Good cause will be measured by whether the request, if adopted, will ensure the integrity of sports gaming or will be in the best interests of the public. The executive director will prescribe the manner, format, and time frame for any request or comment submitted under this paragraph.

(1) If the executive director determines good cause has been shown, the adopted prohibition or restriction will be either noted in the commission's approved catalogue or the previously approved sporting event or wager type will be removed from the catalogue, as applicable.

(2) If the executive director determines good cause has not been shown, the requestor of the prohibition or restriction will be provided with a notice stating the request has been denied and providing the requestor with an opportunity for an appeal hearing. This hearing will be heard by an attorney of the commission who will issue a recommendation to the commission, through the executive director. The hearing is open to the public, to the extent permitted by law, but no evidence or testimony will be taken from any person other than the requestor. The commission, at a meeting held under section 3772.02 of the Revised Code, will determine, based on the recommendation, whether the request is to be adopted. If adopted, the prohibition or restriction will be either noted in the commission's approved catalogue or the previously approved sporting event or wager type will be removed from the catalogue, as applicable. No right of appeal exists from this decision.

(E) The executive director may do the following:

(1) Remove any previously approved sporting event or wager type from the approved catalogue.

(2) Issue an emergency order to sports gaming proprietors to prohibit or restrict wagering on any sporting event or wager type in the approved catalogue. Any emergency order will be effective immediately and any wagering offered on the identified sporting event or wager type will be suspended or restricted until the emergency order is lifted.

(F) Any wagers placed on an incomplete sporting event that has been removed from the catalogue or had wagering suspended through the issuance of an emergency order must be voided in accordance with Chapter 3775. of the Revised Code and the rules adopted thereunder.

Last updated August 15, 2022 at 8:41 AM

History

• Effective: August 15, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-7-02 Tickets.

(A) Upon completion of a sports gaming wager, the player must receive an unalterable wager record from the sports gaming system, which must contain, at a minimum, the following information:

(1) Sports gaming proprietor name;

(2) The date and time the wager was placed;

(3) The date and time the event is expected to occur;

(4) Any player choices involved in the wager, including:

(a) Wager selection;

(b) Type of wager and line postings;

(c) Any special condition(s) applying to the wager; and

(d) Pay out, applicable at the time the wager is placed;

(5) Total amount wagered, including any promotional credits, if applicable;

(6) Sporting event identifier;

(7) Unique identification number of the wager record;

(8) Expiration period;

(9) A problem gambling message as approved by the director; and

(10) The unique sports gaming device ID that issued the wager record, if applicable.

(B) As required under Chapter 3770. of the Revised Code, all winning sports gaming tickets expire one hundred and eighty days from the last day on which the relevant sporting event is held. Each type C sports gaming proprietor must pay the winnings from all tickets which have expired to the Ohio lottery commission, which will deposit them into the Ohio lottery commission gross revenue fund.

(C) The type C sports gaming proprietor must include responsible gambling messaging, customer service instructions, and complaint procedures on printed ticket stock as approved by the director.

Last updated September 26, 2022 at 8:45 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-7-03 Advertising.

(A) The director may prohibit type C sports gaming proprietors from engaging in certain advertising and promotions deemed by the director to be inappropriate. Unless otherwise approved by the director, any costs associated with advertising or promotions initiated by the type C sports gaming proprietor are the responsibility of the type C sports gaming proprietor. The director may initiate advertising and promotional programs and may provide type C sports gaming proprietors with such materials as deemed appropriate.

(B) A type C proprietor must submit advertising programs to the director for approval.

(C) All sports gaming advertisements must comply with the restrictions as set forth in section 3775.02 of the Revised Code and are subject to the approval of the director.

(1) Clearly convey the conditions under which the Ohio lottery commission sports gaming is being offered.

(2) Disclose the identity of the type C sports gaming proprietor.

(3) Clearly and conspicuously include messages designed to prevent problem gambling and provide information about how to access resources related to problem gambling, as required and approved by the director.

Last updated September 26, 2022 at 8:46 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-7-04 Promotions and bonuses.

(A) Type C sports gaming proprietors may offer promotions and bonuses subject to the approval of the director.

(B) The promotion or bonus rules must be clear and unambiguous, and include:

(1) Date and time the promotion or bonus is active and expires;

(2) Rules of play;

(3) Nature and value of prizes or awards;

(4) Eligibility restrictions or limitations;

(5) Wagering and redemption requirements, including any limitations;

(6) Eligible events or wagers;

(7) Cancellation requirements; and

(8) Terms and conditions that are full, accurate, concise, transparent, and do not contain misleading information.

(C) Promotions or bonuses described as free must not require the player to incur any loss or risk their own money to use or withdraw winnings from the free wager.

(D) Promotions or bonuses must not restrict the patron from withdrawing their own funds or withdrawing winnings from wagers placed using their own funds.

(E) Type C sports gaming proprietors must make the promotion or bonus rules available to the player and the Ohio lottery commission.

(F) Type C sports gaming proprietors must have procedures for the issuance, acceptance, and tracking of promotions or bonuses.

(G) A type C sports gaming proprietor must cease the offering of a promotion or bonus upon discovery that the promotion or bonus fails to comply with this rule or if required by the director because the promotion or bonus fails to comply with Chapters 3770. and 3775. of the Revised Code or the rules adopted thereunder or otherwise undermines the integrity of the Ohio lottery commission sports gaming.

Last updated September 26, 2022 at 8:46 AM

History

• Effective: September 25, 2022
• Promulgated Under: 119.03

Chapter 3770:3-8 Type C Sports Gaming Prize Payment

Ohio Adm.Code 3770:3-8-01 Revenue and compensation.

(A) As used in this rule, "gross sports gaming revenue" means sports gaming revenue minus cancels minus approved promotional credits minus prizes paid.

(B) Director's authority to collect lottery sports gaming sales revenues.

(1) The director will collect the revenues received from the sale of lottery sports gaming by type C sports gaming proprietors at weekly intervals established by the director. The director will designate a day or days during any week on which type C sports gaming proprietors are required to deposit to the credit of the lottery fund, in accounts which are recommended to be used exclusively for lottery-related transactions at lawfully designated banking institutions, all gross sports gaming revenues due the lottery by such type C sports gaming proprietors from the sale of sports gaming, less an amount retained as compensation as determined by the director.

(2) The director may arrange for any banking institution to perform the functions and services necessary to collect the revenues received from the sale of lottery sports gaming by proprietors and may arrange the compensation for such performance as deemed necessary and advisable. The director will establish detailed record keeping and operating procedures to be followed by such banking institutions to carry out the purposes of the Lottery Act and lottery rules.

(3) A type C sports gaming proprietor who operates a system independent of the current lottery system, will remit to the lottery ten per cent of gross sports gaming revenue. The director will establish procedures for the prompt payment by each type C sports gaming proprietor to the lottery.

(4) A type C sports gaming proprietor who operates an existing self-service or clerk-operated lottery terminal and who is approved by the director to adapt existing self-service or clerk-operated lottery terminals, owned or operated by the sports gaming proprietor or the Ohio lottery commission, to also serve as lottery sports gaming terminals for that proprietor must remit to the lottery up to thirty-five per cent of gross sports gaming revenue.

(5) If the amount of gross sports gaming revenue in a gaming week is a negative figure, the type C sports gaming proprietor must remit no funds for that gaming week. The director may approve any negative adjusted gross receipts to be carried over and calculated as a deduction on the subsequent gaming week until the negative balance becomes a zero balance or for some other period as determined by the director.

(6) A type C sports gaming proprietor must enter into an agreement with a licensed type C sports gaming host including compensation directly to the host as agreed upon between the type C sports gaming proprietor and the type C sports gaming host.

Last updated November 21, 2022 at 8:34 AM

History

• Effective: November 19, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-8-02 Prize payment.

(A) A prize resulting from a type C sports gaming wager must be able to be validated promptly upon completion of the sports wagering event, by the type C sports gaming proprietor with which the wager was placed. The type C sports gaming proprietor will create a credit voucher for prizes that are below the reportable winnings amount set by 26 U.S.C. 6041, or a subsequent analogous section of the Internal Revenue Code, which can be redeemed by the player for cash or the monetary equivalent of cash. The type C sports gaming proprietor will create a claim voucher for prizes that meet or exceed the reportable winnings amount set by 26 U.S.C. 6041, or a subsequent analogous section of the Internal Revenue Code, which are subject to reporting, withholding, and intercept. All prize vouchers must be redeemed within one hundred eighty days of the completion of the sports gaming event.

(B) A type C sports gaming proprietor will allow its host location(s) to pay credit vouchers. A type C sports gaming proprietor may negotiate lower prize payment thresholds with the type C host. Such prizes will be paid in cash from the host's proceeds of their sports gaming sales, which will be reimbursed by the type C sports gaming proprietor.

(C) A type C sports gaming proprietor may allow for credit vouchers to be credited to the player's credit account, debit account, or an electronic payment account utilized to purchase the wager.

(D) A type C sports gaming proprietor will establish a procedure by which players can redeem any prize vouchers by mail.

(E) A type C sports gaming proprietor may offer electronic player prize payments with the approval of the director. The type C sports gaming proprietor must have procedures for ensuring sports gaming player accounts comply with the player identification standards established in rule 3775-16-03 of the Administrative Code and any other requirements of Chapters 3770. and 3775. of the Revised Code and the rules adopted thereunder.

(F) Subject to the approval of the director, a player may redeem prize vouchers at the lottery headquarters or at a regional office location of the lottery.

(G) A type C sports gaming proprietor may develop a system to allow for validation and payment of lottery sports gaming vouchers at any lottery sales agent or other approved cashing locations. The system must meet security and financial requirements as approved by the lottery and verified through an independent testing laboratory. Compensation for cashing may be negotiated and paid for by the type C sports gaming proprietor.

(H) The lottery will develop and offer an independent validation and cashing system that will be available to any type C sports gaming proprietor or approved cashing location. Compensation for cashing at an approved location will be negotiated and paid for by the type C sports gaming proprietor under the terms of their contract with the lottery.

(I) In connection with sports gaming prize winnings, credit vouchers, claim vouchers, and/or prize payments, the type C sports gaming proprietor must comply with all applicable laws regarding withholding of taxes, debts, obligations and reporting requirements. Compliance with the applicable laws may include, but is not limited to, submission of name, address, date of birth and social security number of prize winner prior to redemption of a claim voucher.

(J) A sports gaming prize winner's submission of name, address, date of birth and social security number must include authorization to the director and type C sports gaming proprietor to use said information for verification of debts or obligations owed and/or reporting requirements. By participating in sports gaming and/or by submitting a claim voucher to be paid, a sports gaming participant consents, agrees and authorizes access to and use of information submitted in connection with a prize payment claim for all necessary purposes under the Lottery Act by the director, and authorized representatives of the Ohio lottery commission, and the type C sports gaming proprietor.

(K) After any required withholding, unless otherwise specified by the director, payment and/or redemption of a valid prize voucher will be made by the type C sports gaming proprietor that issued the prize voucher.

(1) A prize voucher will be deemed valid provided that:

(a) It is presented on paper or other media approved by the director;

(b) It contains all information necessary to process payment of the prize voucher and all such information is legible;

(c) It is not mutilated, altered, tampered with, or otherwise illegible;

(d) It has not previously been paid;

(e) It meets all other rules, regulations, policies, and directives adopted, promulgated or issued by the Ohio lottery commission or the director regarding valid sports gaming wagers and credit vouchers.

(2) In the event that the type C sports gaming proprietor or the director makes a determination that a prize voucher is not subject to payment, the sports gaming participant presenting the prize voucher may submit a written request, on a form approved by the director, or the director's designee, for a reconstruction of the prize voucher by the type C sports gaming proprietor or the director and a written determination of the type C sports gaming proprietor's or the director's decision regarding the validity of the prize voucher. In regard to any such request submitted to a type C sports gaming proprietor, the director must be provided a copy of all such requests and must be provided with a copy of the type C sports gaming proprietor's written determination.

(3) The director will have final authority to honor or declare a prize voucher void. If a prize voucher is declared void by the director, there will be no further liability to redeem or issue payment in connection with the voided prize voucher.

(L) The state, the Ohio lottery commission, and its directors, commissioners, and employees will be discharged of any and all liability upon payment of a type C sports gaming prize, including, but not limited to, redemption and payment of a prize voucher.

(M) The state, the Ohio lottery commission, and its directors, commissioners, and employees, will be discharged of any and all liability associated with a misplaced, stolen, lost, or otherwise missing prize voucher.

Last updated November 21, 2022 at 8:34 AM

History

• Effective: November 19, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3775-16-03

(A) Online sports pool wagers may only be placed through a sports gaming account compliant with the provisions of this rule.

(B) As required by division (B) of section 3775.12 of the Revised Code, a patron must register with a type B sports gaming proprietor and place all wagers on sporting events with a type B sports gaming proprietor through that registration. This registration is to be a sports gaming account compliant with the provisions of this rule.

(C) Each sports gaming proprietor must have procedures for ensuring sports gaming accounts comply with this rule and any other requirements of Chapter 3775. of the Revised Code and the rules adopted thereunder, including ensuring, through commercially reasonable means, that:

(1) An individual who falls into a category of a prohibited person under section 3775.13 of the Revised Code is not permitted to create a sports gaming account, or permitted to continue to make wagers once they become prohibited, for as long as that status applies; and

(2) A patron's identification is re-verified upon reasonable suspicion that the patron's identification or account has been compromised.

(D) Sports gaming proprietors must ensure that all sports gaming accounts:

(1) Include the following information for each patron, and the sports gaming proprietor must update this information each time it becomes aware of changes:

(a) Full legal name;

(b) Date of birth;

(c) Primary address;

(d) Sports gaming account number or username;

(e) If obtained pursuant to paragraph (D)(2)(a) of this rule, the type of government-issued identification examined, the government-issued identification number on the identification, and a digital copy of the identification;

(f) The method and any other information used to verify the patron's identity;

(g) The date of identity verification; and

(h) A history of the wagers placed;

(2) Are only created for patrons whose identities have been successfully verified and documented. Verifying and documenting the patron's identity must include:

(a) Digital or physical examination of the patron's government-issued identification, including the use of verification software designed to confirm the authenticity of the identification; or

(b) Methodology for multi-source authentication, which may include third party and governmental databases, as approved by the executive director;

(3) Provide for the following upon account creation:

(a) A patron must certify that the information provided to the sports gaming proprietor is accurate and they are not an excluded or otherwise prohibited sports gaming participant. The sports gaming proprietor must document this certification;

(b) A patron must acknowledge that the legal age for sports gaming is twenty-one years of age, and that they are prohibited from allowing any other person to access or use their sports gaming account. The sports gaming proprietor must document this acknowledgment; and

(c) A patron must be notified of available responsible gaming resources;

(4) Provide patrons with a readily accessible method for closing an account through the sports gaming proprietor's website or application or upon contact with the proprietor's customer service team. Upon account closure, the patron must be notified of available responsible gaming resources, including a helpline number compliant with paragraph (A)(3) of rule 3775-16-08 of the Administrative Code; and

(5) Provide patrons with on-demand access to a summary statement of all their patron account wagering activity during the past year. In addition, a sports gaming proprietor must provide patrons the ability to request a summary statement of all their patron account wagering activity during the past five years. On-demand access and requests must be accessible through the sports gaming proprietor's website, application, or sports gaming facility.

(E) A sports gaming proprietor may allow a sports gaming account to be deposit-enabled. In addition to the listed requirements, a deposit-enabled account must:

(1) Allow, in accordance with the proprietor's house rules, accounts to be funded only through the use of:

(a) Deposit of cash or vouchers at an approved cashiering or kiosk location;

(b) Credit or debit card;

(c) Promotional credit;

(d) Winnings;

(e) Corrections made by the sports gaming proprietor with documented notification to the patron;

(f) ACH transfer;

(g) Wire transfer; or

(h) Any other means approved by the executive director;

(2) Notify the patron of the establishment of a sports gaming account via electronic mail or regular mail;

(3) Provide patrons with an easy and obvious method, immediately upon initial account registration and at all times through the sports gaming proprietor's website or application, to impose limitations for betting parameters including, but not limited to, deposits, wagers, and time-based limitations. The self-imposed limitation method must provide the following functionality:

(a) Upon receiving any self-imposed limitation request, the sports gaming proprietor must ensure that all specified limits are correctly implemented immediately or at the point in time that was clearly indicated by the patron;

(b) The self-imposed limitations set by a patron must not override more restrictive sports gaming proprietor-imposed limitations. The more restrictive limitations must take priority;

(c) Once established by a patron and implemented by the sports gaming system, it must only be possible to reduce the severity of self-imposed limitations upon the expiration of the self-imposed period; and

(d) An option must be available for patrons to set automatically renewing self-imposed limits;

(4) Include the following additional information for each patron, and the sports gaming proprietor must update this information each time it becomes aware of changes:

(a) Telephone number;

(b) Electronic mail address; and

(c) Social security number, or the last four digits of the social security number, or an equivalent identification number for a noncitizen patron, such as a passport or taxpayer identification number;

(5) Require patrons to protect access to funded sports gaming accounts with multi-factor authentication or similar authentication method, as approved by the executive director;

(6) Prohibit a patron from transferring funds from a sports gaming account to another sports gaming account;

(7) Allow patrons to withdraw the funds maintained in his or her account, whether such account is open or closed, within five business days of the request. A request for withdrawal will be considered honored if it processed by the sports gaming proprietor notwithstanding a delay by a payment processor, credit card issuer or the custodian of a financial account. If the sports gaming proprietor believes in good faith that the patron engaged in either fraudulent conduct or other conduct that would put the sports gaming proprietor in violation of the law, the sports gaming proprietor may delay the withdraw of funds to investigate or otherwise comply with the law. In such cases, the sports gaming proprietor must:

(a) Provide notice to the patron of the general nature of the investigation of the account; and

(b) Conduct its investigation in a reasonable and expedient fashion, providing the patron additional written notice of the status of the investigation at least every tenth business day starting from the day the original notice was provided to the patron; and

(8) Refund any balance remaining in a sports gaming account closed by a patron according to the account withdrawal requirements of this rule.

(F) A sports gaming proprietor that allows for deposit-enabled sports gaming accounts as described in paragraph (D) of this rule must have procedures in place to ensure that the manual addition or subtraction of funds, by the sports gaming proprietor, in a deposit-enabled sports gaming account are either:

(1) Reviewed for any adjustments of five hundred dollars or less; or

(2) Authorized in advance by supervisory personnel for all other adjustments.

Last updated October 29, 2024 at 8:19 AM

History

• Effective: October 26, 2024
• Promulgated Under: 119.03

Ohio Adm.Code 3770:3-8-03 Accounting and revenue audit.

(A) Each type C sports gaming proprietor must have procedures and systems for the preparation, use, and maintenance of complete, accurate, and legible accounting and gaming records, which must include all transactions.

(B) All books, forms, records, documents, and data submitted to the director must have the name of the entity, date of completion, and the title of the book, form, record, document, or stored data.

(C) General accounting records must be maintained on a double-entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles.

(D) Each type C sports gaming proprietor must comply with Chapter 5753. of the Revised Code and with any requests of the tax commissioner.

(E) Each type C sports gaming proprietor must have documented revenue audit procedures. Documentation must be maintained evidencing the performance of all revenue audit procedures, any exceptions noted, and follow-up of all exceptions. The director will prescribe the method of documentation and may require additions or modifications to revenue audit procedures.

Last updated October 28, 2022 at 5:08 AM

History

• Effective: October 27, 2022
• Promulgated Under: 119.03