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

Current through all regulations passed and filed through July 1, 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.