Ohio Administrative Code
Title 3770:2 - Video Lottery Gaming Terminals
Chapter 3770:2-3 - Video Lottery Licenses
Section 3770:2-3-01 - Video lottery licenses; application
Universal Citation: OH Admin Code 3770:2-3-01
Current through all regulations passed and filed through September 16, 2024
(A) Application for a video lottery license shall be submitted in accordance with procedures and conditions set by the director and shall be made on a form approved by the director. At a minimum, and without limitation, an application for a video lottery license shall require compliance with licensing requirements for a lottery sales agent under section 3770.05 of the Revised Code and Chapter 3770-2 of the Administrative Code, and shall include the following requirements, which a video lottery applicant must provide at the time of submission of the application or agree to comply with should a video lottery license be issued.
(1) A video lottery applicant must submit the
video lottery applicant's legal name, form of entity, the names, addresses,
employer identification numbers or social security numbers (if applicable) and
dates of birth (as applicable) of its video lottery principals. Disclosure of
any criminal charges or convictions of all individuals or entities whose names
must be provided must also be included in the application;
(2) A video lottery applicant must submit to
the commission a licensing fee, if
applicable, in the amount set forth in rules promulgated by the
commission under division 3770:2 of the Administrative Code;
(3) A video lottery applicant must submit
proof, in a form required by the director, that the video lottery applicant is
a permit holder or has applied to be a permit holder. If more than one permit
holder conducted horseracing meetings at a track during the previous year, the
permit holders shall designate, by a written agreement, to be submitted prior
to issuance of a video lottery license, one permit holder to be the actual
video lottery sales agent in the event a video lottery license is
issued;
(4) A video lottery
applicant must submit, in a form acceptable to the director, its proposed
business plan for video lottery at its facility, which may require the
inclusion of documents relating to an applicant's borrowing or financing of
video lottery operations including but not limited to the payment of licensing
fees. A business plan may be deemed a trade secret under division (D) of
section 1333.61 of the Revised Code and
therefore may not be subject to disclosure under section
149.43 of the Revised
Code;
(5) A video lottery applicant
must agree to provide, in a form and by a date acceptable to the director, its
proposed security and surveillance plan, including
proposed standard operating procedures, for approval by the director or
director's designee. A security and surveillance plan may be deemed an
infrastructure record and/or security record as set forth in section
149.433 of the Revised Code and
therefore may not be subject to disclosure under
section 149.43 of the Revised
Code;
(6) For the period of time
established or required by the director, a video lottery applicant must provide
a listing of any and all gaming licenses, registrations or certifications
obtained by the video lottery applicant, including the type of license,
registration, or certification, date of issuance, date of suspension,
termination, expiration or cancellation, if suspended, terminated, expired or
cancelled, and the reason for suspension, termination, expiration or
cancellation, and the date of assessment, imposition or payment of any
penalties or fines;
(7) If required by the director, a video lottery
applicant must agree to submit to background checks and reviews of the video
lottery applicant, or
the
applicant's principals, or any other persons affiliated with the video
lottery applicant or video lottery sales agent,
who the director determines should be required to submit to a criminal or
financial background check. Background checks and reviews for institutional
investors who are the video lottery
applicant's principals may be required as deemed
necessary by the director;
(a) The director
may determine that an institutional investor having an ownership interest in a
video lottery applicant or licensee, directly or indirectly, of five per cent
to fifteen per cent is not a video lottery principal as defined in paragraph
(GG) of rule
3770:2-2-01
of the Administrative Code if the institutional investor submits to the
director documentation sufficient to establish qualifications as an
institutional investor and certifies in writing, all of the following:
(i) The institutional investor owns, holds,
or controls publicly traded securities issued by an applicant or licensee or
holding, intermediate, or parent company of an applicant or licensee in the
ordinary course of business for investment purposes only.
(ii) The institutional investor does not
exercise influence over the affairs of the issuer of such securities nor over
an licensed subsidiary of the issuer of such securities.
(iii) The institutional investor does not
intend to exercise influence over the affairs of the issuer of such securities,
nor over any licensed subsidiary of the issuer of such securities, in the
future, and that it agrees to notify the director in writing within thirty days
if such intent changes. The exercise of voting privileges with regard to
publicly traded securities shall not be deemed to constitute the exercise of
influence over the affairs of a licensee.
(b) The director may rescind the
determination that an institutional investor is not a video lottery principal
under this paragraph at any time if the institutional investor exercises or
intends to exercise influence or control over the affairs of the applicant or
licensee.
(c) This paragraph shall
not be construed to preclude the director from requiring background checks and
conducting reviews if the director becomes aware of facts or information that
may result in the institutional investor being considered a video lottery
principal.
(8) Within
the time specified by the director, a video lottery applicant must, in a form
acceptable to the director, obtain a dedicated non-revocable letter of credit,
a surety bond, financial guarantee or other alternative form of credit approved
by the director in an amount determined by the director. In addition, the
director may require a video lottery applicant to submit evidence of the
ability to obtain general liability insurance, workers compensation coverage,
property insurance in amounts required by the director, and any other insurance
or bonds deemed necessary by the director;
(9) If required by the director, a video
lottery applicant must submit a signed indemnification agreement in a form
approved by the director;
(10) An
applicant must agree to provide, at times requested by the lottery, a written
schedule that lists the installed cost of all fixtures and equipment supplied
or to be supplied in connection with video lottery conducted at the video
lottery sales agent's facility approved for video lottery sales;
(11) A video lottery applicant must agree
that video lottery terminals shall be located at the premises of the permit
holder licensed by the racing commission to conduct live horse racing for
profit at a racing meeting;
(12) A
video lottery applicant must agree to purchase or lease, maintain and timely
repair video lottery terminals, and a video lottery applicant must agree that
video lottery terminals will only be purchased or leased from a technology
provider licensed by the director;
(13) A video lottery applicant must agree to
provide for a clearly identifiable separation between the video lottery area
and the racing wagering area;
(14)
An applicant must agree to make, maintain and repair necessary capital
improvements for facilities at which video lottery terminals are located in
accordance with standards and timetables set forth by the director;
(15) A video lottery applicant must agree
that any hardware or software installed to facilitate redemption of credit
vouchers shall be the video lottery sales agent's responsibility;
(16) A video lottery applicant must agree to
be responsible for the costs associated with providing technology providers and
other personnel designated by the director, sufficient space, as determined by
the director, at the facility, where video lottery terminals are located, to
allow technology providers and other personnel designated by the director to
store equipment and conduct service, repairs and maintenance of video lottery
terminals, video lottery central monitoring system and peripherals associated
therewith necessary to ensure continued operation of the video lottery central
monitoring system and video lottery terminals;
(17) A video lottery applicant must agree to
timely report to the director, or the director's designee, any malfunction of
the video lottery terminals or associated equipment, or failures of the
technology providers to promptly service, repair or deliver video lottery
terminals when such malfunctions or failures are reported to, made known to or
observed by a video lottery sales agent;
(18) A video lottery applicant must agree to
allow the lottery and its designated agents access to the video lottery
facility and records for audits authorized under section
3770.06 of the Revised Code and
for any other purposes deemed necessary by the director;
(19) A video lottery applicant must agree
that all funds due to the lottery shall be transferred to the lottery by
electronic fund transfer, or other method as approved by the director on the
days and times set forth in the schedule or schedules issued by the director;
and
(20) A video lottery applicant
must agree that payments of video lottery winnings to video lottery
participants, and required withholdings, if applicable, will be handled in
accordance with procedures as approved by the director.
(B) As deemed necessary by the director, the director may amend the application and require video lottery applicants and/or video lottery sales agents to supplement or complete an amended application. Further, all information required to be submitted as part of an application for a video lottery license pursuant to division 3770:2 of the Administrative Code must be updated or supplemented if updates or changes occur following the submission of an application. In the event that updated or supplemental information is required by or received by the lottery, the director maintains discretion to suspend, revoke or reconsider an application or otherwise modify the conditions of the issuance of a license. In the event that the director takes action in connection with any updated or supplemental information received by the lottery, the director will adhere to required notices and procedures regarding any suspensions, revocation, reconsideration or modification of an application or the issuance of a license.
Effective: 8/28/2016
Five Year
Review (FYR) Dates: 05/16/2016 and
10/28/2020
Promulgated
Under: 119.03
Statutory
Authority: 3770.03
Rule
Amplifies: 3770.01,
3770.02,
3770.03,
3770.06,
3770.21
Prior
Effective Dates: 8/18/09 (Emer.), 10/28/10, 12/29/11,
10/25/12
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