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August 19, 2016 CSI Filing: Skill-Based Amusement Machines

Created by Executive Order 2011-01K, the Common Sense Initiative (CSI), and Senate Bill 2 of the 129th General Assembly, require state agencies, including the Casino Control Commission, to draft rules in collaboration with stakeholders, assess and justify any adverse impact on the business community (as defined by Senate Bill 2), and provide opportunity for the affected public to provide input on the rules. 

The Ohio Casino Control Commission submitted the following proposed rules to the CSI office for review on August 19, 2016: 

 

Brief Explanation of the Rules 

The proposed rules contained within this package relate to the regulation of skill-based amusement machines and encompass definitions, licensing requirements, and a waiver provision.  The rules lay the framework for the Commission’s licensing and oversight of skill-based amusement machine gaming.

3772-50 Skill-Based Amusement Machines (10 rules)

  • 3772-50-01, titled “Definitions.” This rule establishes definitions used throughout chapter 3772-50 of the Administrative Code.  The purpose of the rule is to provide consistent terminology for frequently used words.  Containing definitions to one administrative rule allows the Commission to provide clarity, ease of location and use, and avoid repetition throughout the chapter.
  • 3772-50-02, titled “Authority and purpose.” This rule outlines the purpose of chapter 3772-50 of the Administrative Code and amplifies the Commission’s statutory authority under R.C. 3772.03(K), to ensure the integrity of skill-based amusement machine gaming, and describes some of the Commission’s powers with respect to skill-based amusement machine gaming.  The purpose of the rule is to provide clarity to the Commission’s mission and authority with respect to skill-based amusement machine gaming.
  • 3772-50-03, titled “General licensing requirements.”  This rule describes the requirements to be licensed under chapter 3772-50 of the Administrative Code.  In particular, the rule requires all persons who engage in skill-based amusement machine gaming as a skill-based amusement machine vendor, skill-based amusement machine key employee, Type-B skill-based amusement machine operator, Type-C skill-based amusement machine operator shall be licensed by the commission  unless, (1) the person conducts only type-A skill-based amusement machine gaming, (2) the person is a location that conducts type-B skill-based amusement machine gaming (but no type-C gaming), or (3) a location is otherwise licensed as a type-C skill-based amusement machine operator.  The purpose of the rule is to outline licensing requirements that apply to all license types under chapter 3772-50 of the Administrative Code and to provide certain exceptions to the licensing requirements to avoid duplicitous licensure.    
  • 3772-50-04, titled “Skill-based amusement machine vendor licensure.” This rule establishes the licensing factors used by the Commission to evaluate the suitability for licensure of skill-based amusement machine vendors.  The rule also describes the process for obtaining a license as a skill-based amusement machine vendor, including applying through the state of Ohio’s eLicense system, an application fee of fifteen thousand dollars, and a license fee of five thousand dollars.  The licensure period is up to three years.  The purpose of the rule is to provide guidance as to the application and licensing procedure used by the Commission to license a person as a skill-based amusement machine vendor.
  • 3772-50-05, titled “Skill-based amusement machine key employee licensure.” This rule establishes the licensing factors used by the Commission to evaluate the suitability for licensure of skill-based amusement machine key employees.  The rule also describes the process for obtaining a license as a skill-based amusement machine key employee, including applying through the state of Ohio’s eLicense system, an application fee of two hundred fifty dollars, and a license fee of two hundred fifty dollars.  The licensure period is up to five years.  The purpose of the rule is to provide guidance as to the application and licensing procedure used by the Commission to license a person as a skill-based amusement machine key employee.
  • 3772-50-06, titled “Type-B skill-based amusement machine operator licensure.” This rule establishes the licensing factors used by the Commission to evaluate the suitability for licensure of type-B skill-based amusement machine operators.  The rule also describes the process for obtaining a license as a type-B skill-based amusement machine operator, including applying through the state of Ohio’s eLicense system, an application fee of one thousand five hundred dollars, and a license fee of one thousand five hundred dollars.  The licensure period is up to three years.  The purpose of the rule is to provide guidance as to the application and licensing procedure used by the Commission to license a person as a type-B skill-based amusement machine operator.
  • 3772-50-07, titled “Type-C skill-based amusement machine operator licensure.” This rule establishes the licensing factors used by the Commission to evaluate the suitability for licensure of type-C skill-based amusement machine operators.  The rule also describes the process for obtaining a license as a type-C skill-based amusement machine operator, including applying through the state of Ohio’s eLicense system, an application fee of fifteen thousand dollars, and a license fee of five thousand dollars.  The licensure period is up to three years.  The purpose of the rule is to provide guidance as to the application and licensing procedure used by the Commission to license a person as a type-C skill-based amusement machine operator.
  • 3772-50-08, titled “Type-C skill-based amusement machine location licensure.” This rule establishes the licensing factors used by the Commission to evaluate the suitability for licensure of type-C skill-based amusement machine locations.  The rule also describes the process for obtaining a license as a type-C skill-based amusement machine location, including applying through the state of Ohio’s eLicense system, an application fee of two hundred fifty dollars, and a license fee of two hundred fifty dollars.  The licensure period is up to five years.  The purpose of the rule is to provide guidance as to the application and licensing procedure used by the Commission to license a person as a type-C skill-based amusement machine location.
  • 3772-50-09, titled “Registration of operation of skill-based amusement machine.” This rule establishes that persons who are required to be licensed as skill-based amusement machine vendors, type-B skill-based amusement machine operators, and type-C skill-based amusement machine operators must register with the Commission within ninety days of the effective date of the rule and submit a completed application for licensure within one hundred twenty days of the effective date of the rule.  The registration permits persons to continue to conduct skill-based amusement machine gaming until the Commission renders a final determination on the license application.  The rule does not limit or preclude enforcement of violations of R.C. Chapters 2915. and 3772.  The purpose of the rule is to provide a grace period that allows already-existing businesses to operate while the Commission reviews and investigates license applications.
  • 3772-50-10, titled “Waivers and variances.” This rule allows the Commission to waive or vary the requirements of chapter 3772-50 of the Administrative Code upon a written request of the person requesting waiver or variance.  However, the Commission will not grant a waiver of the general requirement to be licensed under chapter 3772-50 of the Administrative Code.  The purpose of the rule is to provide some flexibility to the Commission and the stakeholder community.

Associated CSI Documents
Business Impact Analysis

Contact Information for Comments

The Commission welcomes comments regarding these proposed rules. To ensure your comments are considered as part of the Common Sense Initiative (“CSI”) review period, the Commission should receive them no later than September 2, 2016.

Any questions or comments with respect to these rules may be directed to Andromeda Morrison via email at Andromeda.Morrison@casinocontrol.ohio.gov or U.S. Mail at 10 West Broad Street, 6th Floor, Columbus, Ohio 43215. Comments may also be directed to the CSI Office at csipubliccomments@governor.ohio.gov.


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