Ohio Adm.Code 3775 | Ohio Administrative Code 3775 — Ohio Casino Control Commission - Sports Gaming

Chapter 3775-1 General Provisions

Ohio Adm.Code 3775-1-01 Definitions.

(A) The words and terms defined in section 3775.01 of the Revised Code are used in this agency as they are defined in that section, unless otherwise specified.

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

(1) "Advertisement" means a notice, announcement, or communication to the public, or any specific member(s) thereof, made by a sports gaming proprietor or on its behalf, designed to solicit or entice a person to participate in the sports gaming offerings of a sports gaming proprietor through broadcasting, publication, or any other means of dissemination in this state.

(2) "Affiliate marketer" means a person who conducts promotion, marketing, advertising or patron recruitment for a sports gaming proprietor in this state either:

(a) Through a website or mobile application; or

(b) In exchange for a commission or variable fee based upon the number of users recruited, wagering activity generated, revenue generated, or any other metric.

(3) "Application" means the total written materials, including the instructions, forms, and other documents issued by the commission, comprising an applicant's request for a license.

(4) "Appointing professional sports organization" means a professional sports organization that is a member of a league, association, or organization that prevents the professional sports organization from being subject to the regulatory control of the Ohio casino control commission or from otherwise operating under a sports gaming proprietor license.

(5) "Beneficial and proprietary interest" means a direct or indirect interest of five per cent or more.

(6) "Conduct" means to back, promote, organize, manage, carry on, sponsor, or prepare for the operation of sports gaming in this state and includes participating in the conduct at issue.

(7) "License" or "plenary license" means the complete and approved document issued by the commission that indicates that an applicant has been chosen for licensure and has met all requirements set forth in Chapter 3775. of the Revised Code and the rules adopted thereunder.

(8) "Licensee" means any person who holds a valid plenary or provisional license.

(9) "Person" has the same meaning as in section 3772.01 of the Revised Code.

(10) "Person in control" means any person meeting division (C) of section 3775.03 of the Revised Code but does not include persons in control of an appointing professional sports organization.

(11) "Provisional license" means a complete and approved document issued by the commission that indicates an applicant has been chosen for temporary licensure in accordance with Section 4 of Amended House Bill 29 of the 134th General Assembly.

(12) "Sports gaming employee" means any individual required to obtain a sports gaming occupational license under Chapter 3775. of the Revised Code and the rules adopted thereunder.

(13) "Sports gaming equipment" has the same meaning in division (P) of section 3775.01 of the Revised Code, but does not include any device, software, or component that does not affect the operational integrity of sports gaming, as determined by the executive director.

(14) "Sports gaming proprietor" has the same meaning as in division (T) of section 3775.01 of the Revised Code and includes "mobile management services provider" and "management services provider" to the extent any sports gaming proprietor has contracted its rights, duties, and liabilities to the mobile management services provider or management services provider under division (E) of sections 3775.05 and 3775.051 of the Revised Code.

(15) "Sports gaming system" means:

(a) The sports gaming equipment necessary to allow a participant to place, review, or modify wagers, as allowed by the sports gaming proprietor, as well as be paid for winning wagers;

(b) The sports gaming equipment the proprietor uses to review, manage, and report information related to user accounts, wager placement, or wager outcome. This does not include the equipment or communications technology simply used to access the sports gaming system or the intermediary software that connects the user to their financial institution; and

(16) "Suspicious sports gaming activity" means unusual sports gaming activity that cannot be explained and is indicative of any of the following: match fixing, the manipulation of a sport, misuse of inside information, a potential breach of a sports governing body's internal rules or code of conduct pertaining to sports gaming, any other conduct that corrupts the outcome of a sport, and any other prohibited activity.

(17) "Unusual sports gaming activity" means an abnormal betting or wagering activity or pattern exhibited by a patron or patrons. This activity or pattern may include abnormal wager amounts or changes to wager volume based upon expected wager amount, sport type, or wager type.

Last updated October 17, 2022 at 8:36 AM

History

Effective: October 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-02 Authority and purpose.

(A) The purpose of agency 3775 of the Administrative Code is to ensure the integrity of sports gaming in this state.

(B) The commission may, under procedures established in Chapter 119. of the Revised Code, adopt, amend, or repeal such rules as it deems necessary and proper for the successful and efficient regulation of sports gaming under Chapters 3772. and 3775. of the Revised Code.

(C) The rules contained in agency 3775 of the Administrative Code are adopted pursuant to Chapter 3772. or 3775. of the Revised Code.

(D) The commission may, in its discretion and where permitted by law, delegate its authority to perform any of its functions related to the regulation of sports gaming to the executive director or to other employees of the commission. Such delegations are to be governed by rule 3772-2-05 of the Administrative Code.

Last updated June 15, 2022 at 9:45 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3772-2-05

(A) The commission members may, in their discretion and where permitted by law, delegate the authority to perform any of the agency's functions. Except as provided in paragraph (D) of this rule, such action will for all purposes be deemed the final action of the commission, without approval, ratification or other further action by the members.

(B) Any delegation of authority will be effected through formal action at a meeting held under section 3772.02 of the Revised Code. Such action must be memorialized in the manner described in paragraph (E) of rule 3772-2-03 of the Administrative Code.

(C) All delegations of authority made pursuant to this rule will remain in effect indefinitely, unless otherwise specified. Any delegation of authority previously approved may be revoked or modified through subsequent member action at a meeting held under section 3772.02 of the Revised Code.

(D) Any determination made pursuant to delegated authority may be reviewed by the members. Any such determination is deemed final unless modified or reversed by member action at a meeting held under section 3772.02 of the Revised Code.

(E) Notwithstanding any other provision of this rule, any matter that has been delegated may alternatively be presented to and determined by the members on their own motion, at the discretion of the chairperson, or upon the request of the executive director.

Last updated August 2, 2021 at 10:31 AM

History

Effective: August 2, 2021
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-03 Construction.

(A) The provisions of agency 3775 of the Administrative Code are to be construed in accordance with generally accepted principles of statutory construction, including those set forth in agency 3772 of the Administrative Code.

(B) In the interpretation of any provision of agency 3775 of the Administrative Code, any ambiguity is to be resolved in favor of the interpretation that would provide:

(1) The greater assurance of integrity in either the operation or regulation of sports gaming; or

(2) Heightened public confidence in the regulation or regulatory processes related to sports gaming.

(C) Nothing contained in agency 3775 of the Administrative Code is to be construed to limit the powers and duties of the commission as provided in Chapter 3772. or 3775. of the Revised Code or to conflict with any provision of the Revised Code or any other applicable law.

(D) If any provision of agency 3775 of the Administrative Code is held invalid, that holding is not to be construed to invalidate any other provision of agency 3772 or 3775 of the Administrative Code.

Last updated June 15, 2022 at 9:45 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-04 Waivers and variances.

(A) The commission may waive or grant a variance from the provisions of agency 3775 of the Administrative Code, either on its own or upon a written request, if the commission determines that the waiver or variance is in the best interests of the public.

(B) A person required to obtain a license under Chapter 3775. of the Revised Code may not seek a waiver from the requirements to apply for, obtain, or maintain a license or to pay a different fee amount than is required to apply for or obtain the license.

(C) A waiver or variance request submitted under this rule must be submitted in the manner prescribed by the executive director and contain the following:

(1) The requestor's name, mailing address, telephone number, and electronic mail address;

(2) A contact person and that person's mailing address, telephone number, and electronic mail address;

(3) A detailed description of the specific provisions that the requestor is seeking to have waived or to vary from and the reason or reasons justifying the request;

(4) The requestor's signature or the signature of a duly authorized representative of the requestor; and

(5) Any other information required by the executive director.

(D) In granting any waiver or variance, the commission may impose conditions or restrictions with which the requestor must comply. Failure to comply with the conditions or restrictions contained in an approved waiver or variance will immediately render the approval void and may result in discipline or other formal action as if the waiver or variance had never been granted.

(E) The commission may consider any waiver or variance request submitted under this rule at a meeting held under section 3772.02 of the Revised Code or delegate such responsibility to the executive director. If such a delegation occurs, the executive director will provide a written response to the requestor indicating whether the variance has been granted or denied.

(F) The commission, or the executive director if delegated, retains the sole authority to grant, deny, or modify a waiver or variance request submitted under this rule. The request may by denied or modified for any reason.

(G) Denial or modification of any waiver or variance request submitted under this rule does not require notice and an opportunity for hearing nor will it be considered an adjudication or final appealable order for purposes of Chapter 119. or section 2505.03 of the Revised Code. Such denial or modification will not be considered during any determination of the rights, duties, privileges, or benefits of legal relationships of the requestor.

Last updated June 15, 2022 at 9:45 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-05 Records retention.

(A) Unless otherwise required by Chapter 3775. of the Revised Code or any rules adopted thereunder, each sports gaming proprietor, mobile management services provider, management services provider, and supplier must retain and maintain, in a place secure from theft, loss, or destruction, all the records required to be maintained by Chapter 3775. of the Revised Code or the rules adopted thereunder for at least five years from the date of the record's creation, including:

(1) The business and organizational structure of the record holder;

(2) Correspondence, including reports, to or from the commission or any local, state, or federal governmental agency, or foreign gaming regulatory body;

(3) Any acquisition, construction, remodeling, or maintenance of a proposed or existing sports gaming facility in this state;

(4) All transactions and other records related to the lease, purchase, installation, operation, maintenance, or repair of sports gaming equipment stored, maintained, operated, possessed, or otherwise used in conducting sports gaming in this state;

(5) Financial statements, accounting records, ledgers, and internal and external audit records;

(6) Records related to the conduct of sports gaming in this state; and

(7) Any other books, records, or documents the commission requires, in writing, to be retained and maintained.

(B) Each sports gaming proprietor, mobile management services provider, management services provider, and supplier must retain and maintain, in a manner consistent with this rule, the personnel files for all sports gaming employee applicants or licensees for three years from the employment decision or last date of employment, as applicable.

(C) Each sports gaming proprietor, mobile management services provider, management services provider, and supplier must retain and maintain, in a manner consistent with this rule, any materials used to advertise, publicize, or otherwise promote sports gaming in this state for two years from the end of the advertising, promotional, or publicity campaign. If an affiliate marketer advertises, publicizes, or otherwise promotes sports gaming on behalf these entities, those records must be retained and maintained by either the affiliate marketer or the entity.

(D) All records required to be maintained must be organized or furnished by the record holder in a manner that enables the commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency, when requested by the commission.

(E) Upon request, the record holder must provide the commission with the records required to be maintained by Chapter 3775. of the Revised Code or the rules adopted thereunder.

(F) Nothing in this rule should be construed to require disclosure of a record that is protected by the attorney-client privilege. If a record that is protected by the attorney-client privilege is at issue, the record holder must provide the commission with written notification of the record's existence, including a general description of the record's contents and the basis for the privilege.

Last updated June 15, 2022 at 9:45 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-06 Access to records, examinations under oath, and subpoena power.

Consistent with the authority to do the same with respect to fantasy contests, skill-based amusement machine operations, and casino gaming and in the discharge of any duties imposed by Chapter 3772. or 3775. of the Revised Code, the commission may utilize and enforce its authority to access records and conduct examinations under oath as well as its subpoena power in accordance with section 3772.05 of the Revised Code, division (D) of section 3772.04 of the Revised Code, and rule 3772-2-06 of the Administrative Code.

Last updated June 15, 2022 at 9:46 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3772-2-06

(A) In the discharge of any duties imposed by the Revised Code, the commission may require that testimony be given under oath and administer such oath, issue subpoenas compelling the attendance of witnesses and the production of any papers, books, and accounts, and cause the deposition of any witness.

(B) In the event of the refusal of any person without good cause to comply with the terms of a subpoena issued by the commission or the refusal to testify on matters about which the person may lawfully be questioned:

(1) The commission may petition the prosecuting attorney of the county in which such person resides to bring a proceeding for contempt against such person in the court of common pleas of that county; and

(2) The commission may discipline any applicant or licensee, in accordance with the Revised Code and commission rules adopted thereunder, for failing or refusing to submit to a properly issued subpoena.

Last updated August 2, 2021 at 10:32 AM

History

Effective: August 2, 2021
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-07 Hearings.

(A) If the executive director concludes that administrative action should be taken against any applicant, licensee, or other person subject to the requirements of agency 3775 of the Administrative Code, the commission will provide notice of the proposed action in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code.

(B) All hearings and hearing procedures are to be conducted in the manner described in Chapter 3772-21 of the Administrative Code.

Last updated June 15, 2022 at 9:46 AM

History

Effective: June 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-08 Sanctions.

(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 3775-1-09 Sports gaming involuntary exclusion list.

(A) The "sports gaming involuntary exclusion list" consists of the names and other identifying or descriptive information of those individuals who meet the criteria under Chapter 3772. of the Revised Code and this rule and have been placed on the list in accordance with section 3772.031, 3772.04, or 3775.13 of the Revised Code. This rule does not govern the Ohio VEP, as described in Chapter 3772-12 of the Administrative Code, or any exclusion required by division (F) of section 3775.13 of the Revised Code.

(B) An individual on the sports gaming involuntary exclusion list is prohibited from entering a sports gaming facility or the grounds of a sports gaming facility or from participating in the play or operation of sports gaming in this state.

(1) Exclude any individual on the sports gaming involuntary exclusion list from entering their Ohio sports gaming facility; and

(2) Prevent such individual from engaging in sports gaming conducted by the sports gaming proprietor in Ohio.

(D) Each sports gaming proprietor must notify the commission, on a monthly basis, if an individual on the involuntary exclusion list has entered the sports gaming facility or has engaged in sports gaming conducted by the sports gaming proprietor in Ohio.

(E) This rule does not preclude a sports gaming proprietor from ejecting any individual from its sports gaming facility or from otherwise prohibiting an individual from engaging in sports gaming offered by the sports gaming proprietor for any lawful reason. The sports gaming proprietor may request that the commission place an ejected individual on the sports gaming involuntary exclusion list, but the decision to initiate an involuntary exclusion proceeding or to place an individual on the sports gaming involuntary exclusion list rests solely with the commission.

(F) As required by division (B)(2) of section 3775.13 of the Revised Code, a sports gaming proprietor must notify the commission if the sports gaming proprietor excludes an individual because the sports gaming proprietor determines that the individual engaged or attempted to engage in any sports gaming related activity that is prohibited under Chapter 3775. of the Revised Code and the rules adopted thereunder. This report can be combined with any report the sports gaming proprietor files under paragraph (D) of this rule.

Last updated August 15, 2022 at 8:38 AM

History

Effective: August 15, 2022
Promulgated Under: 119.03

Chapter 3775-4 Sports Gaming Licenses

Ohio Adm.Code 3775-4-01 General licensing requirements.

(A) No sports gaming proprietor, mobile management services provider, management services provider, sports gaming supplier, sports gaming employee, or type C sports gaming host may operate, conduct, or assist in operating or conducting sports gaming in this state without first obtaining an appropriate license or provisional license from the commission.

(B) Except for an appointing professional sports organization, type C sports gaming host, or applicant who currently holds a license under division (A)(3) of section 3775.06 of the Revised Code, each person applying for an initial or renewal sports gaming license must submit two complete sets of fingerprints to the commission for the purpose of conducting a criminal records check pursuant to divisions (A) and (C) of section 109.572 of the Revised Code, at the applicant's sole expense and cost. An applicant that employs a sports gaming employee applicant must pay these fees on that person's behalf. An applicant convicted of any disqualifying offense, as defined and prohibited by sections 3772.07 and 3772.10 of the Revised Code, and as determined under section 9.79 of the Revised Code, will not be issued a license.

(C) The commission may grant a sports gaming proprietor, mobile management services provider, management services provider, or sports gaming supplier license to an applicant only once it has determined that each person in control of the applicant, has:

(1) Submitted any forms, documents, or information the commission requires;

(2) Submitted two sets of fingerprints. The costs of which are to be paid by the entity the person controls; and

(3) Been found eligible, qualified, and suitable as determined by the commission.

(D) The commission must conduct a complete investigation of each applicant for a sports gaming license each time the applicant applies for an initial or renewal sports gaming license.

(E) The commission may reopen a licensing investigation or adjudication at any time.

(F) When reviewing an applicant, the commission may rely on or consider the last investigation conducted into, or license issued to, the applicant under Chapter 3770. or 3772. of the Revised Code.

(G) All sports gaming applicants and licensees, except for appointing professional sports organizations and type C gaming hosts, must update the commission, in writing, within ten days of any material change to any information provided in an initial or renewal sports gaming license application, to include the following:

(1) Change of name;

(2) Change of home or business address;

(3) Change of primary telephone number or electronic mail address;

(4) Change to the state of incorporation or principal place of business;

(5) A change in the persons in control of an applicant or licensee;

(6) Any bankruptcy filed, discharged, or dismissed;

(7) Any arrest, charge, plea, or conviction for any crime or offense occurring in any jurisdiction, excluding minor misdemeanor traffic offenses;

(8) Any investigation commenced by or action filed by a gaming regulatory agency or government gaming authority, except for routine renewal application reviews;

(9) Any rejection, suspension, revocation, or denial of any gaming-related application or license, and any fine, penalty, or settled amount related to any gaming-related license imposed upon or agreed to in any jurisdiction;

(10) Any other changes designated on an applicable update form; and

(11) Any other information affecting the sports gaming license applicant's or sports gaming licensee's suitability.

(H) All appointing professional sports organizations must update the commission, in writing, within ten days of any material change to any information provided in an initial or renewal sports gaming license application, to include the following:

(1) Change of name;

(2) Change of address;

(3) Change of primary telephone number or electronic mail address;

(4) Change to the state of incorporation or principal place of business;

(5) Any investigation commenced by or action filed by a gaming regulatory agency or government gaming authority, except for routine renewal application reviews;

(6) Any changes to the appointing professional sports organization's status, including changes regarding their membership in a league, association, or organization with a policy preventing them from being subject to the regulatory control of the commission or from otherwise operating under a license, as well as changes to that policy itself; and

(7) Any other changes designated on an applicable update form.

(I) All type C sports gaming hosts must update the commission, in writing, within ten days of any material change to any information provided in an initial or renewal sports gaming license application to include the following:

(1) Change of name;

(2) Change of address;

(3) Change of primary telephone number or electronic mail address;

(4) Change to any A-1A, A-1C, D-1, D-2, or D-5 liquor permit held and issued under Chapter 4303. of the Revised Code;

(5) Change to any lottery sales agent license held and issued Chapter 3770. of the Revised Code;

(6) Change to a lottery commission recommendation; and

(7) Any other changes designated on an applicable update form.

(J) A sports gaming licensee must adhere to the following with respect to a license granted by the commission:

(1) A sports gaming proprietor, mobile management services provider, and management services provider must display its license conspicuously in its place of business or have the license available for inspection by the commission or any law enforcement agency upon request;

(2) A sports gaming employee licensee must prominently display evidence of a license, in a manner determined by the executive director, while actively on duty for a sports gaming proprietor and present in a sports gaming facility; and

(3) A type C sports gaming host must display its license conspicuously in its place of business.

(K) Information provided on the application, and any additional information requested by and provided to the commission, will be used as a basis for an investigation of each applicant or licensee.

(L) An incomplete application, or an application containing false, misleading, or omitted information, is cause for administrative action by the commission.

(M) The executive director may recommend to the commission that it deny any application, or limit, condition, restrict, suspend, or revoke any license or impose any fine upon any licensee or other person in accordance with sports gaming law.

(N) No person may re-apply for a sports gaming license for three years from the date the person's application for licensure was denied or license was revoked by the commission. This provision does not apply to applications the executive director approves for withdrawal or to an applicant who is not issued a license solely due to a restraint in the number of licenses available.

(O) No license issued under this chapter is transferable. A significant change in or transfer of control of a licensee, as determined by the executive director, requires the filing of a new application and submission of the applicable fees under this chapter before any change in or transfer of control is approved by the commission.

Last updated January 27, 2025 at 8:03 AM

History

Effective: January 25, 2025
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-02 Type A sports gaming proprietor licensure.

(A) An applicant for an initial or renewal type A sports gaming proprietor license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of one hundred and fifty thousand dollars, as well as all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal type A sports gaming proprietor license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) Except for an appointing professional sports organization, in determining whether to grant, maintain, or renew a type A sports gaming proprietor license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of section 3775.03 and divisions (A), (B), and (C) of section 3775.041 of the Revised Code:

(1) Whether the type A sports gaming proprietor and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the type A sports gaming proprietor and any person that controls it possesses financial stability, integrity, and responsibility;

(3) Whether the type A sports gaming proprietor is a professional sports organization, casino operator, or video lottery sales agents as defined in section 3775.01 of the Revised Code;

(4) The extent to which the type A sports gaming proprietor and any person that controls it have cooperated with the commission in connection with the background investigation;

(5) The extent to which the type A sports gaming proprietor and any person that controls it have provided accurate and complete information as required by the commission;

(6) The suitability of any material person, as determined by the executive director;

(7) The reputation and business experience of the type A sports gaming proprietor operating in the state;

(8) The establishment and maintenance of facilities that meet the requirements of division (A)(3) of section 3775.04 of the Revised Code;

(9) Whether the type A sports gaming proprietor has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission;

(10) The prospective total revenue to be collected by the state for the conducting of online sports gaming by a sports gaming proprietor;

(11) The prospective total taxable income to be earned by the type A sports gaming proprietor's employees in the state;

(12) The extent to which the type A sports gaming proprietor contributes to the economic development in the state; and

(13) The extent to which the type A sports gaming proprietor has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(D) If the type A sports gaming proprietor is an appointing professional sports organization, the designee operator must establish the designee operator's suitability on behalf of the appointing professional sports organization in accordance with paragraph (C) of this rule. A type A sports gaming proprietor that is a professional sports organization, regardless of appointing status, otherwise must:

(1) Meet all applicable eligibility standards and economic development factors including those in divisions (A) and (C) of section 3775.041 of the Revised Code; and

(2) Maintain protocols and procedures in place with the designee operator to ensure independence and avoid conflicts of interest in the operation of sports gaming, in accordance with division (A) of section 3775.05 of the Revised Code and the rules adopted thereunder.

(E) If, at any time during licensure, a professional sports organization either loses its status as an appointing professional sports organization or otherwise wishes to offer sports gaming without a designee operator, the professional sports organization must first demonstrate its suitability under paragraph (C) of this rule as well as compliance with all other provisions of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(F) A type A sports gaming proprietor license expires five years after the date of licensure.

(G) A type A sports gaming proprietor may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(H) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal type A sports gaming proprietor license must ensure that:

(1) The first installment of the license fees described in division (E)(1) of section 3775.04 of the Revised Code is paid. Each subsequent annual license fee must be paid by the anniversary date of the granting of the license. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code; and

(2) A surety bond of an amount necessary to cover all future license fees owed, payable to the state, is posted and maintained, as required by division (E) of section 3775.04 of the Revised Code. The bond must be issued by a surety that is licensed to do business in this state.

(I) In the event the application fee paid by a type A sports gaming proprietor is insufficient to cover the actual costs of investigating the suitability of the applicant or the persons that control it, the commission may assess additional fees to cover the costs of the investigation that exceed the application fee paid under this chapter.

(J) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(K) If the executive director determines at any time that a type A sports gaming proprietor licensee has not actively offered sports gaming to patrons under the license for a continued period of one year or more or that the proprietor was issued a license because of a preference described in division (A) of section 3775.041 of the Revised Code and no longer qualifies for that preference, administrative action to revoke the applicable license may be taken against the licensee. Notice of any proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code. In so doing, the executive director may issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code. Such administrative action will not affect any other sports gaming proprietor licenses that are held by the licensee.

(L) A type A sports gaming proprietor may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.

(M) The applicant should clearly identify those portions of the application that it deems to be confidential, proprietary commercial information, trade secrets, or otherwise not subject to public disclosure. Information provided as part of the application and licensing process is open to public inspection to the extent provided by the Ohio Public Records Act and section 3775.14 of the Revised Code.

Last updated October 29, 2024 at 8:18 AM

History

Effective: October 26, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-02.1 Additional type A sports gaming proprietor licenses.

(A) Except as otherwise provided in paragraph (B) of this rule, the commission must not license more than twenty-five type A sports gaming proprietors at any one time.

(B) Once twenty-five type A sports gaming proprietors are licensed in this state, the commission may, in its sole discretion, issue additional type A sports gaming proprietor licenses only if the potential applicant(s) can demonstrate that:

(1) There is a substantial, considerable, and ongoing need for additional type A sports gaming proprietors evidenced by quantifiable sports gaming market data gathered in this state consisting of;

(a) Market share analyses;

(b) Reports performed by a qualified third party on the projected amount of additional contributions to economic development, taxable revenue, and job creation that will be generated resulting in a further substantial benefit to this state; and

(2) They meet all requirements for licensure under Chapter 3775. of the Revised Code and the rules adopted thereunder.

Last updated October 16, 2024 at 4:40 PM

History

Effective: October 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-03 Type B sports gaming proprietor licensure.

(A) An applicant for an initial or renewal type B sports gaming proprietor license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of twenty thousand dollars, as well as all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal type B sports gaming proprietor license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) Except for an appointing professional sports organization, in determining whether to grant, maintain, or renew a type B sports gaming proprietor license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of section 3775.03 and divisions (A), (B), and (C) of section 3775.041 of the Revised Code:

(1) Whether the type B sports gaming proprietor and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the type B sports gaming proprietor and any person that controls it possesses financial stability, integrity, and responsibility;

(3) Whether the type B sports gaming proprietor is a professional sports organization, casino operator, or video lottery sales agent as defined in section 3775.01 of the Revised Code;

(4) The extent to which the type B sports gaming proprietor and any person that controls it have cooperated with the commission in connection with the background investigation;

(5) The extent to which the type B sports gaming proprietor and any person that controls it have provided accurate and complete information as required by the commission;

(6) The suitability of any material person, as determined by the executive director;

(7) The reputation and business experience of the type B sports gaming proprietor operating in the state;

(8) The suitability of the facilities or proposed facilities for the conducting of sports gaming in the state;

(9) Whether the type B sports gaming proprietor has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission;

(10) The prospective total revenue to be collected by the state for the conducting of in-person sports gaming by the sports gaming proprietor;

(11) The prospective total taxable income to be earned by the type B sports gaming proprietor's employees in the state;

(12) The extent to which the type B sports gaming proprietor contributes to the economic development in the state; and

(13) The extent to which the type B sports gaming proprietor has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(D) If the type B sports gaming proprietor is an appointing professional sports organization, the designee operator must establish the designee operator's suitability on behalf of the appointing professional sports organization in accordance with paragraph (C) of this rule. A type B sports gaming proprietor that is a professional sports organization, regardless of appointing status, otherwise must:

(1) Meet all applicable eligibility standards and economic development factors including those in divisions (A) and (C) of section 3775.041 of the Revised Code; and

(2) Maintain protocols and procedures in place with the designee operator to ensure independence and avoid conflicts of interest in the operation of sports gaming, in accordance with division (A) of section 3775.051 of the Revised Code and the rules adopted thereunder.

(F) In addition to the factors in paragraph (C) or (D) of this rule, as applicable, and the county population parameters outlined in division (B) of section 3775.04 of the Revised Code, the commission will only issue an initial type B sports gaming proprietor license to a person who conducts significant economic activity in the county in which the sports gaming facility is to be located. This requirement will be determined by the commission in consultation with the department of development and may include consideration of the following factors:

(1) Contributions of physical capital or infrastructure;

(2) Contributions to employment;

(3) Contributions to business development, including tourism; and

(4) Any other factors the commission determines, in consultation with the department of development, to materially affect the economic activity in a particular county.

(G) A type B sports gaming proprietor license expires five years after the date of licensure.

(H) A type B sports gaming proprietor may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(I) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal type B sports gaming proprietor license must ensure that:

(1) The first installment of the license fees described in division (E)(2) of section 3775.04 of the Revised Code is paid. Each subsequent annual license fee must be paid by the anniversary date of the granting of the license. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code; and

(J) In the event the application fee paid by a type B sports gaming proprietor is insufficient to cover the actual costs of investigating the suitability of the applicant or the persons that control it, the commission may assess additional fees to cover the costs of the investigation that exceed the application fee paid under this chapter.

(K) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(L) If the executive director determines at any time that a type B sports gaming proprietor licensee has not actively offered sports gaming to patrons under the license for a continued period of one year or more, or that the proprietor was issued a license because of a preference described in division (A) of section 3775.041 of the Revised Code and no longer qualifies for that preference, administrative action to revoke the applicable license may be taken against the licensee. Notice of any proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code. In so doing, the executive director may issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code. Such administrative action will not affect any other sports gaming proprietor licenses that are held by the licensee.

(M) A type B sports gaming proprietor may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.

(N) The applicant should clearly identify those portions of the application that it deems to be confidential, proprietary commercial information, trade secrets, or otherwise not subject to public disclosure. Information provided as part of the application and licensing process is open to public inspection to the extent provided by the Ohio Public Records Act and section 3775.14 of the Revised Code.

Last updated October 29, 2024 at 8:18 AM

History

Effective: October 26, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-03.1 County population exception for type B sports gaming proprietor license.

(A) Except as otherwise provided in paragraph (B) of this rule, the commission must not license a type B sports gaming proprietor with a sports gaming facility located in a county with a population of less than one hundred thousand, as determined by the 2010 federal decennial census.

(B) If a type B sports gaming proprietor has a sports gaming facility located in a county with a population of fifty thousand or more but less than one hundred thousand, as determined by the 2010 federal decennial census, the commission may issue a type B sports gaming proprietor license if:

(1) The type B sports gaming proprietor obtains and submits information from the department of development attesting that the county where the proposed or current sports gaming facility is located received at least five million visitors for purposes of tourism during the most recent calendar year for which data is available; and

(2) They meet all requirements for licensure under Chapter 3775. of the Revised Code and the rules adopted thereunder.

Last updated October 16, 2024 at 4:40 PM

History

Effective: October 15, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-04 Type C sports gaming proprietor licensure.

(A) An applicant for an initial or renewal type C sports gaming proprietor license must complete and submit the appropriate form(s) required by the commission and pay a nonrefundable application fee of fifteen thousand dollars and all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal type C sports gaming proprietor license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) In determining whether to grant, maintain, or renew a type C sports gaming proprietor license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of 3775.03 and divisions (B) and (C) of section 3775.041 of the Revised Code:

(1) Whether the type C sports gaming proprietor and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the type C sports gaming proprietor and any person that controls it possesses financial stability, integrity, and responsibility;

(3) The extent to which the type C sports gaming proprietor and any person that controls it have cooperated with the commission in connection with the background investigation;

(4) The extent to which the type C sports gaming proprietor and any person that controls it have provided accurate and complete information as required by the commission;

(5) The suitability of any material person, as determined by the executive director;

(6) The reputation and business experience of the type C sports gaming proprietor;

(7) Whether the type C sports gaming proprietor has entered or will enter into agreements to offer sports gaming at type C sports gaming host facilities, subject to regulatory approvals;

(8) Whether the type C sports gaming proprietor has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission;

(9) The prospective total revenue to be collected by the state for the conducting of sports gaming;

(10) The prospective total taxable income to be earned by the type C sports gaming proprietor's employees in the state;

(11) The extent to which the type C sports gaming proprietor contributes to the economic development in the state; and

(12) The extent to which the type C sports gaming proprietor has complied with the requirements of Chapters 3770., 3772., and 3775. of the Revised Code and the rules adopted thereunder.

(D) A type C sports gaming proprietor license expires five years after the date of licensure.

(E) A type C sports gaming proprietor may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(F) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal type C sports gaming proprietor license must:

(1) Pay the nonrefundable license fees as outlined in division (E)(3) of section 3775.04 of the Revised Code;

(2) Post and maintain a surety bond of an amount necessary to cover all future license fees owed, payable to the state, which must be issued by a surety that is licensed to do business in this state, as required by division (E) of section 3775.04 of the Revised Code; and

(3) Enter into a valid contract with the state lottery commission to operate lottery sports gaming pursuant to Chapters 3770. and 3775. of the Revised Code. Failure to enter into or to maintain a contract with the state lottery commission may be cause for administrative action against the licensee.

(G) In the event the application fee paid by a type C sports gaming proprietor is insufficient to cover the actual costs of investigating the suitability of the applicant or the persons that control it, the commission may assess additional fees to cover the costs of the investigation that exceed the application fee paid under this chapter.

(H) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(I) If the executive director determines at any time that a type C sports gaming proprietor licensee has not actively offered sports gaming to patrons under the license for a continued period of one year or more, administrative action to revoke the applicable license may be taken against the licensee. Notice of any proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code. Such administrative action will not affect any other sports gaming proprietor licenses that are held by the licensee.

(J) A type C sports gaming proprietor may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.

(K) The applicant should clearly identify those portions of the application that it deems to be confidential, proprietary commercial information, trade secrets, or otherwise not subject to public disclosure. Information provided as part of the application and licensing process is open to public inspection to the extent provided by the Ohio Public Records Act and section 3775.14 of the Revised Code.

Last updated October 29, 2024 at 8:18 AM

History

Effective: October 26, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-05 Mobile management services provider licensure.

(A) An applicant for an initial or renewal mobile management services provider license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of one hundred fifty thousand dollars, as well as all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal mobile management services provider license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) In determining whether to grant, maintain, or renew a mobile management services provider license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of section 3775.03 and division (B) of section 3775.041 of the Revised Code:

(1) Whether the mobile management services provider and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the mobile management services provider and any person that controls it possesses financial stability, integrity, and responsibility;

(3) The extent to which the mobile management services provider and any person that controls it have cooperated with the commission in connection with the background investigation;

(4) The extent to which the mobile management services provider and any person that controls it have provided accurate and complete information as required by the commission;

(5) Whether the mobile management services provider has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission;

(6) Whether the applicant is considered a designated first mobile management services provider or designated second mobile management services provider pursuant to division (A) of section 3775.05 of the Revised Code, including, for a second designated mobile management services provider, whether the type A sports gaming proprietor, in coordination with the mobile management services provider, has demonstrated that issuing the license would:

(a) Not prevent any other type A sports gaming proprietor from securing a first designated mobile management services provider; and

(b) Provide an incremental economic benefit to the state. The economic benefit generated to the state will be determined by:

(i) The additional actual or expected sports gaming tax revenue generated and license fees dedicated for educational purposes, problem gambling services, and veterans;

(ii) Any jobs created or other services procured in the state that are attributable to the designated second mobile management services provider conducting sports gaming;

(iii) Any capital investments made or intended to be made in the state by the designated second mobile management services provider; or

(iv) Other economic impacts approved by the commission.

(7) Whether the mobile management services provider has been contractually appointed as the mobile management services provider or designee operator by a type A sports gaming proprietor licensee, subject to regulatory approval;

(8) The reputation and business experience of the mobile management services provider operating in the state;

(9) The prospective total revenue to be collected by the state for the conducting of sports gaming; and

(10) The extent to which the mobile management services provider has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(D) A mobile management services provider that has been appointed as the designee operator in accordance with division (A) of section 3775.05 of the Revised Code must ensure independence with the professional sports organization that holds the type A sports gaming proprietor license. In so doing, the designee operator must ensure that a conflicts of interest policy is created, implemented, and maintained to avoid apparent or actual conflicts of interests between the parties. The policy must be originally approved by the commission, with material changes approved by the executive director, and must include controls or information necessary to ensure that:

(1) Neither party:

(a) Shares information that may compromise the integrity of sporting events or sports gaming with the other; nor

(b) Controls nor improperly influences the other; and

(2) Both parties maintain separate and independent records as it relates to the operation of sports gaming in this state, to the extent such records exist in the normal course of business.

(E) A mobile management services provider license expires five years after the date of licensure. Regardless of the licensure term, and pursuant to division (E)(2) of section 3775.05 of the Revised Code, a mobile management services provider is not permitted to operate sports gaming other than pursuant to a currently valid and binding contract with a type A sports gaming proprietor.

(F) A mobile management services provider may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(G) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal mobile management services provider license must ensure that:

(1) The first installment of the license fees described in division (B)(3) of section 3775.05 of the Revised Code is paid. Each subsequent annual license fee must be paid by the anniversary date of the granting of the license. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code;

(2) A surety bond of at least five hundred thousand dollars, payable to the state, is posted and maintained. The bond must be issued by a surety that is licensed to do business in this state; and

(3) A written contract with a type A sports gaming proprietor to operate sports gaming on the proprietor's behalf has been entered into and approved by the commission. The contract must contain a description of what duties under Chapter 3775. of the Revised Code and the rules adopted thereunder each party is responsible for.

(H) As required by division (D) of section 3775.05 of the Revised Code, any material change, as determined by the executive director, to the contract described in paragraph (G)(3) of this rule requires executive director approval. If material changes to the contract are made without approval, those changes are null and void. This contract, and any provision thereof, is not assignable or transferable.

(I) No mobile management services provider may hold more than four mobile management services licenses at any one time. For each mobile management services provider application submitted after the first, a mobile management services provider need only complete those portions of the application so indicated and need only pay an application fee of seventy-five thousand dollars.

(J) In the event the application fee paid by a mobile management services provider is insufficient to cover the actual costs of investigating the suitability of the applicant or the persons that control it, the commission may assess additional fees to cover the costs of the investigation that exceed the application fee paid under this chapter.

(K) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(L) If the executive director determines at any time that a mobile management services provider licensee has not actively offered sports gaming to the economic benefit of the state under the license for a continued period of one year or more, administrative action to revoke the applicable license may be taken against the licensee. Notice of any proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code. Such administrative action will not affect any other mobile management services provider licenses that are held by the licensee.

(M) A mobile management service provider may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.

Last updated October 29, 2024 at 8:18 AM

History

Effective: October 26, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-06 Management services provider licensure.

(A) An applicant for an initial or renewal management services provider license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of twenty thousand dollars, as well as all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal management services provider license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) In determining whether to grant, maintain, or renew a management services provider license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of section 3775.03 and division (B) of section 3775.041 of the Revised Code:

(1) Whether the management services provider and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the management services provider and any person that controls it possesses financial stability, integrity, and responsibility;

(3) The extent to which the management services provider and any person that controls it have cooperated with the commission in connection with the background investigation;

(4) The extent to which the management services provider and any person that controls it have provided accurate and complete information as required by the commission;

(5) Whether the management services provider has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission;

(6) Whether the management services provider has been contractually appointed as the management services provider or designee operator by a type B sports gaming proprietor licensee, subject to regulatory approval;

(7) The reputation and business experience of the management services provider operating in the state;

(8) The prospective total revenue to be collected by the state for the conducting of sports gaming; and

(9) The extent to which the management services provider has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(D) A management services provider that has been appointed as the designee operator in accordance with division (A) of section 3775.051 of the Revised Code must ensure complete independence with the professional sports organization that holds the contractual type B sports gaming proprietor license. In so doing, the designee operator must ensure that a conflicts of interest policy is created, implemented, and maintained to avoid apparent or actual conflicts of interests between the parties. The policy must be originally approved by the commission, with material changes approved by the executive director, and must include controls or information necessary to ensure that:

(1) Neither party:

(a) Shares information that may compromise the integrity of sporting events or sports gaming with the other; nor

(b) Controls nor improperly influences the other; and

(2) Both parties maintain separate and independent records as it relates to the operation of sports gaming in this state, to the extent such records exist in the normal course of business.

(E) A management services provider license expires five years after the date of licensure. Regardless of the licensure term, and pursuant to division (E)(2) of section 3775.051 of the Revised Code, a management services provider is not permitted to operate sports gaming other than pursuant to a currently valid and binding contract with a type B sports gaming proprietor.

(F) A management services provider may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(G) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal management services provider license must ensure that:

(1) The first installment of the license fees described in division (B)(3) of section 3775.051 of the Revised Code is paid. Each subsequent annual license fee must be paid by the anniversary date of the granting of the license. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code;

(2) A surety bond of at least one hundred thousand dollars payable to the state is posted and maintained. The bond must be issued by a surety that is licensed to do business in this state; and

(3) A written contract with a type B sports gaming proprietor to operate sports gaming on the proprietor's behalf has been entered into and approved by the commission. The contract must contain a description of what duties under Chapter 3775. of the Revised Code and the rules adopted thereunder each party is to be responsible for.

(H) As required by division (D) of section 3775.051 of the Revised Code, any material change, as determined by the executive director, to the contract described in paragraph (G)(3) of this rule requires executive director approval. If material changes to the contract are made without approval, those changes are null and void. This contract, and any provision thereof, is not assignable or transferrable.

(I) No management services provider may hold more than twelve management service provider licenses at any one time. For each management services provider application submitted after the first, a management services provider need only complete those portions of the application so indicated and need only pay an application fee of ten thousand dollars.

(J) In the event the application fee paid by a management services provider is insufficient to cover the actual costs of investigating the suitability of the applicant or the persons that control it, the commission may assess additional fees to cover the costs of the investigation that exceed the application fee paid under this chapter.

(K) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(L) If the executive director determines at any time that a management services provider licensee has not actively offered sports gaming to the economic benefit of the state under the license for a continued period of one year or more, administrative action to revoke the applicable license may be taken against the licensee. Notice of any proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code. Such administrative action will not affect any other management services provider licenses that are held by the licensee.

(M) A management service provider may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.

Last updated October 29, 2024 at 8:18 AM

History

Effective: October 26, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-07 Type C sports gaming host licensure.

(A) An applicant for an initial or renewal type C sports gaming host license must apply for licensure via the state of Ohio eLicense website at www.elicense.ohio.gov, comply with all instructions, and pay a non-refundable application fee of one thousand dollars. This application fee will be credited as payment of the type C gaming host's license fee, as prescribed by division (C) of section 3775.07 of the Revised Code.

(B) In determining whether to grant, maintain, or renew a type C sports gaming host license, the commission will evaluate and consider the following factors:

(1) Whether the applicant has been issued a valid A-1A, A-1C, D-1, D-2, or D-5 liquor permit under Chapter 4303. of the Revised Code;

(2) Whether the applicant has been issued a valid lottery sales agent license under Chapter 3770. of the Revised Code;

(3) Whether the applicant has or will enter into an agreement with a type C sports gaming proprietor to offer sports gaming at its facility, subject to regulatory approval;

(4) Whether the state lottery commission recommends the applicant be issued the license; and

(5) Whether the applicant has complied with the requirements of Chapters 3770., 3772., and 3775. of the Revised Code and the rules adopted thereunder.

(C) A type C sports gaming host may offer sports gaming through a different type C sports gaming proprietor than the one identified in the applicant's initial license application during the period of the license, subject to the terms of any governing agreement with the type C sports gaming proprietor.

(D) An applicant for a type C sports gaming host license is not required to undergo a criminal background check or suitability investigation to be issued the license.

(E) The commission, at a meeting held under section 3772.02 of the Revised Code, will determine whether the applicant is eligible for the license and whether the applicant has complied with the requirements of Chapters 3770., 3772., and 3775. of the Revised Code and the rules adopted thereunder.

(F) A type C sports gaming host license expires three years after the date of licensure.

(G) A type C gaming host licensee may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred twenty days before the expiration of the license.

(H) The applicant should clearly identify those portions of the application that it deems to be confidential, proprietary commercial information, trade secrets, or otherwise not subject to public disclosure. Information provided as part of the application and licensing process is open to public inspection to the extent provided by the Ohio Public Records Act and section 3775.14 of the Revised Code.

Last updated May 28, 2024 at 8:25 AM

History

Effective: May 27, 2024
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-08 Sports gaming supplier licensure.

(A) An applicant for an initial or renewal sports gaming supplier license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of ten thousand dollars and all fees necessary to cover the cost of any required criminal-records checks.

(B) An applicant for an initial or renewal sports gaming supplier license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) In determining whether to grant, maintain, or renew a sports gaming supplier license, the commission will evaluate and consider the following factors, in addition to those set forth in division (C) of section 3775.03 and division (B) of section 3775.041 of the Revised Code:

(1) Whether the sports gaming supplier and any person that controls it possesses good character, honesty, and integrity;

(2) Whether the sports gaming supplier and any person that controls it possesses financial stability, integrity, and responsibility;

(3) The extent to which the sports gaming supplier and any person that controls it have cooperated with the commission in connection with the background investigation;

(4) The extent to which the sports gaming supplier and any person that controls it have provided accurate and complete information as required by the commission;

(5) The suitability of any material person, as determined by the executive director;

(6) The reputation and business experience of the sports gaming supplier operating in the state;

(7) Whether the sports gaming supplier has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission; and

(8) The extent to which the sports gaming supplier has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(D) A sports gaming supplier license that currently holds an active license issued under Chapter 3770. or 3772. of the Revised Code will not be required to satisfy any additional requirement for the sports gaming supplier license that is substantially similar to any requirement the applicant previously satisfied in order to obtain or renew the applicable license issued under Chapter 3770. or 3772. of the Revised Code so long as:

(1) The applicant submits the appropriate form(s) required by the commission and ensures the payment of all applicable fees;

(2) The applicant demonstrates that the license is active and in good standing in this state; and

(3) The applicant otherwise meets the eligibility requirements of Chapter 3775. of the Revised Code and the rules adopted thereunder.

(E) A sports gaming supplier license expires three years after the date of licensure.

(F) A sports gaming supplier may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred eighty days before the expiration of the license.

(G) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal sports gaming supplier license must ensure that the nonrefundable license fee of fifteen thousand dollars as required by division (C) of section 3775.08 of the Revised Code is paid.

(H) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

(I) The applicant should clearly identify those portions of the application that it deems to be confidential, proprietary commercial information, trade secrets, or otherwise not subject to public disclosure. Information provided as part of the application and licensing process is open to public inspection to the extent provided by the Ohio Public Records Act and section 3775.14 of the Revised Code.

Last updated September 17, 2022 at 12:28 PM

History

Effective: September 17, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-4-09 Sports gaming employee licensure.

(A) An applicant for an initial or renewal sports gaming employee license must complete and submit the appropriate form(s) required by the commission and ensure the payment of a nonrefundable application fee of one hundred dollars as well as all fees necessary to cover the cost of any required criminal-records checks except that a sports gaming applicant or licensee that employs a sports gaming employee applicant must pay all fees on the sports gaming employee's behalf.

(B) An applicant for an initial or renewal sports gaming employee license must establish, by clear and convincing evidence, the applicant's suitability for licensure.

(C) A sports gaming employee must obtain either a standard-level or a key-level sports gaming employee license depending on the individual's duties and involvement in sports gaming in the state, as follows:

(1) Standard sports gaming employee licenses must be held by individuals whose duties, regardless of title, are outlined in division (A)(1) of section 3775.06 of the Revised Code; and

(2) Key sports gaming employee licenses must be held by individuals who, regardless of title, are considered persons in control, as defined in rule 3775-1-01 of the Administrative Code.

(D) Unless expressly noted in this rule or on the appropriate form provided by the commission, an individual obtaining a standard sports gaming employee license or key sports gaming employee license will be subject to the same fees, requirements, and eligibility considerations.

(E) An individual who meets the sports gaming employee license classifications in paragraph (C) of this rule solely due to their employment with or control of an appointing professional sports organization or a type C gaming host need not obtain a sports gaming employee license.

(F) In determining whether to grant, maintain, or renew a sports gaming employee license, the commission will evaluate and consider the following factors, in addition to those set forth in section 3775.06 of the Revised Code:

(1) Whether the individual possesses good character, honesty, and integrity;

(2) Whether the individual possesses financial stability, integrity, and responsibility;

(3) The criminal history of the individual in any jurisdiction;

(4) Whether the individual has filed or had filed against the individual a proceeding for bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise resolve the payment of any debt in the last ten years;

(5) Whether the individual has been served with a complaint or other notice filed with any public body regarding any payment of tax required under federal, state, or local law that has been delinquent for one or more years in the last ten years;

(6) Whether the individual is a party to any currently pending litigation or has been a defendant in litigation during the last ten years;

(7) The extent to which the individual has cooperated with the commission in connection with the background investigation;

(8) The extent to which the individual has provided accurate and complete information as required by the commission;

(9) Whether the individual has been issued a comparable sports gaming license in another gaming jurisdiction with similar licensing requirements, as determined by the commission, including the related compliance history of the individual; and

(10) The extent to which the individual has complied with the requirements of Chapters 3772. and 3775. of the Revised Code and the rules adopted thereunder.

(G) A sports gaming employee who currently holds an active license issued under Chapter 3770. or 3772. of the Revised Code will not be required to satisfy any additional requirement for the sports gaming employee license that is substantially similar to any requirement the applicant previously satisfied in order to obtain or renew the applicable license issued under Chapter 3770. or 3772. of the Revised Code so long as:

(1) The individual submits the appropriate form(s) required by the commission and ensures the payment of all applicable fees;

(2) The individual demonstrates that the license is active and in good standing in this state; and

(3) The individual otherwise meets the eligibility requirements of this chapter and the rules adopted thereunder.

(H) A sports gaming employee who currently holds an active sports gaming occupational license from another jurisdiction is eligible to receive license reciprocity by the commission so long as:

(1) The individual submits the appropriate form(s) required by the commission and ensures the payment of all applicable fees;

(2) The individual demonstrates that the license is active and in good standing in the other jurisdiction;

(3) The commission determines that the other jurisdiction's requirements to receive that license and the activities authorized by the license are substantially similar to those of this state; and

(4) The individual otherwise meets the eligibility requirements of Chapter 3775. of the Revised Code and the rules adopted thereunder.

(I) A sports gaming employee license expires three years after the date of licensure.

(J) A sports gaming employee may request renewal of the license by completing and submitting the appropriate form(s) required by the commission no less than one hundred twenty days before the expiration of the license.

(K) Upon approval by the commission, at a meeting held under section 3772.02 of the Revised Code, an applicant for an initial or renewal sports gaming employee license must pay a nonrefundable license fee of fifty dollars as required by division (C) of section 3775.06 of the Revised Code except that a sports gaming applicant or licensee that employs a sports gaming employee applicant must pay the license fee on the sports gaming employee's behalf.

(L) Unless otherwise approved by the executive director, all fees must be submitted to the commission in the form of an electronic funds transfer payable to the treasurer of the state of Ohio.

Last updated September 17, 2022 at 12:28 PM

History

Effective: September 17, 2022
Promulgated Under: 119.03

Ohio Adm.Code 3775-1-01