Ohio Administrative Code › Title 3770:2 - Video Lottery Gaming Terminals › Chapter 3770:2-3 - Video Lottery Licenses › Section 3770:2-3-03 - Video lottery licenses; issuance of license

Current through all regulations passed and filed through July 1, 2024
(A) If after a review of an application and
			 consideration of factors deemed relevant to the efficient and proper
			 administration of video lottery, and provided that the director determines that
			 a video lottery applicant has met the requirements for issuance of a video
			 lottery license, the director may license a video lottery applicant as a video
			 lottery sales agent on such terms and conditions, and for such length of time,
			 deemed appropriate, including issuance of a temporary license.
(B) No video lottery license shall be issued
			 until licensing fees are paid in accordance with and in the amount set forth in
			 rules promulgated by the commission under Chapter 3770:2-11 of the
			 Administrative Code.
(C) No video
			 lottery license shall be issued to an entity that is not a permit holder.
			 An entity that has submitted an application to the
			 racing commission to become a permit holder may apply for a video lottery sales
			 agent license. No video lottery sales agent license shall be issued unless and
			 until the application to become a permit holder is granted by the racing
			 commission.
(D) Video lottery
			 licenses are subject to suspension, modification, revocation or fines as
			 authorized by the Lottery Act, rule, regulation, policy order or directive of
			 the commission or director. Further, as necessary for reasons related to public
			 safety, convenience or trust which require immediate action, the director may
			 order the immediate and indefinite disabling of all or a portion of the video
			 lottery operations and/or removal of video lottery equipment at a video lottery
			 sales agent's video lottery facility. In the event of such action, the director
			 must continue to comply with the requirements of the Administrative Procedure
			 Act in affording the video lottery sales agent a subsequent opportunity for an
			 adjudication hearing.
(E) License
			 transfer.
(1) A video lottery license is not
			 transferable without
			 regulatory review and approval by the director.  Any person or entity
			 holding an ownership interest in the video lottery applicant or holding,
			 directly of indirectly, an ownership interest through a holding company of the
			 video lottery applicant, as of the date of issuance of an operating license to
			 the video lottery sales agent, may increase such ownership interest thereafter
			 and any such increase or increases shall not be considered a transfer of
			 license under this rule.
(2) Any
			 ownership interest in the video lottery sales agent or ownership, directly or
			 indirectly, through a holding company of a video lottery sales agent, that is
			 acquired after the date of issuance of an operating license to the video
			 lottery sales agent by a person or entity not previously holding an ownership
			 interest, which would result in such person or entity obtaining control of the
			 video lottery applicant shall be considered a 
									license
			 transfer and must be submitted to the director for regulatory review
			 and approval prior to such a transfer.
(3) Any changes in ownership under paragraph
			 (E)(1) or (E)(2) of this rule shall be subject to supplemental requirements set
			 forth in paragraph (B) of rule
			 3770:2-3-01
			 of the Administrative Code or in a transfer
			 application.
(4) As used in this paragraph, "control"
			 means either of the following:
(a) Holding
			 fifty per cent of more of the outstanding voting securities of an applicant; or
			 having the right in the event of dissolution to fifty per cent or more of the
			 assets of the applicant; or, for an unincorporated applicant, having the right
			 to fifty per cent or more of the profits of the applicant; or
(b) Having the contractual power presently to
			 designate fifty per cent or more of the directors of a for-profit or
			 not-for-profit corporation, or in the case of trusts described in paragraphs
			 (c)(3) to (5) of
			 16
			 C.F.R. 801.1 (2011), the trustees of such a
			 trust.
(5)
									 If the director permits a transfer under
			 this subsection, the director may also reduce, but shall not be required to
			 reduce, any fee otherwise payable under division 3770:2 of the Administrative
			 Code.