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December 22, 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 December 22, 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, key employee licensing, duty to update information, filing requirements, affirmative duties of skill-based amusement machine operators and locations, and skill-based amusement machine tournaments.

3772-50 Skill-Based Amusement Machines (6 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.
  • 3772-50-05, 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 further 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 rule also establishes the process for applicants to obtain a BCI/FBI criminal background check. 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.
  • 3772-50-11, titled “Duty to update information.” This rule specifies the circumstances under which applicants and licensees must notify the Commission of a change in certain information, including changes in contact information, name changes, administrative sanctions or settlements issued by any gaming or State of Ohio agency, and changes to an applicant’s or licensee’s financial or criminal background. These updates must be submitted to the Commission in writing within thirty calendar days after the change or occurrence of the event. The purpose of this rule is to ensure the continuing suitability of skill-based amusement machine applicants or licensees.
  • 3772-50-18, titled “Duties of type-B skill-based amusement machine operators.” This rule describes the responsibilities of type-B skill-based amusement machine operators to maintain certain records, including changes to game program or software; maintain the security of locked cabinets or consoles; ensure that prizes are capable of being dispensed from a type-B skill-based amusement machine; and place a sign or sticker on each type-B skill-based amusement machine providing a complaint phone number available to consumers. The rule further provides that a type-B skill-based amusement machine operator shall comply with notices and directives from the Commission or the Executive Director to implement policies, procedures, or practices. The purpose of the rule is to outline the affirmative duties of a licensed type-B skill-based amusement machine operator.
  • 3772-50-19, titled “Duties of type-C skill-based amusement machine operators.” This rule describes the responsibilities of type-C skill-based amusement machine operators to maintain certain records, including changes to game program or software; maintain the security of locked cabinets or consoles; display available prizes in a single area; and place a sign at a location or sticker on each skill-based amusement machine providing a complaint phone number available to consumers. The rule further provides that a type-C skill-based amusement machine operator shall comply with notices and directives from the Commission or the Executive Director to implement policies, procedures, or practices. The purpose of the rule is to outline the affirmative duties of a licensed type-C skill-based amusement machine operator.
  • 3772-50-20, titled “Duties of type-C skill-based amusement machine locations.” This rule describes the responsibilities of type-C skill-based amusement machine locations to revenue-share only with licensed operators and maintain accounting for each agreement, allow a licensed operator to place any required signs or materials at the location, and display available prizes in a single area. The rule further provides that a type-C skill-based amusement machine location shall comply with notices and directives from the Commission or the Executive Director to implement policies, procedures, or practices. The purpose of the rule is to outline the affirmative duties of a licensed type-C skill-based amusement machine location.

 

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 January 5, 2017.

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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