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September 28, 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 September 28, 2016:

 

Brief Explanation of the Rules 

The proposed rules contained within this package relate to the regulation of skill-based amusement machine operators, vendors and locations and encompass filing requirements, records retention, Commission inspections and audits, and skill-based amusement machine advertising in the State of Ohio.

3772-50 Skill-Based Amusement Machines (5 rules)

  • 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, non-routine investigations by any gaming or State of Ohio agency, and administrative action taken by gaming or State of Ohio agencies against the applicant or licensee. 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 game applicants or licensees.
  • 3772-50-12, titled “Filing requirements.” This rule outlines the items that type-B and type-C skill-based amusement machine operators must file with the Commission if they are found to be suitable for a new or renewal license. These requirements include the filing of a report containing a list of all skill-based amusement machine locations that the operator owns, leases, manages, or operates one or more type-B or C machines and a listing of all machine vendors that the operator conducts business with. Skill-based amusement machine vendors must also file a similar report with the Commission if found suitable for a new or renewal license. Each operator and vendor must file an annual report with the Commission and must provide notice to the Commission if they intend to cease business. The purpose of this rule is to ensure that the Commission has complete information with respect to the breadth of each applicant or licensee’s skill-based amusement machine operation in the State of Ohio.
  • 3772-50-13, titled “Record retention requirements.” This rule details the specific records that each skill-based amusement machine operator, vendor, or location is required to retain and maintain relating to the conduct of skill-based amusement machine operations in the State of Ohio. These records must be maintained in a manner that enables efficient review by the Commission, but may be retained at a location outside of the state so long as they are electronically transferable to the Commission within a reasonable amount of time. The rule also requires the records to be maintained for at least three years after creation and must be provided to the Commission upon request. The purpose of this rule is to ensure the proper storage and retention of information relating to skill-based amusement machines, allowing the Commission to perform audits and other necessary investigations to ensure the integrity of skill-based amusement machine gaming.
  • 3772-50-14, titled “Inspection and audits.” This rule provides that the Commission has access to any location that is related to skill-based amusement machine gaming, including the manufacturing, distribution, or testing of any supplies, devices, or equipment. The rule details the Commission’s inspection and audit authority,  including the examination of machine locations, supplies, devices or equipment; inspecting and auditing persons that conduct or participate in skill-based amusement machine gaming; and requesting licensed persons to produce audits or other documents relating to the gaming. The rule further states that all applicants and licensees consent the inspections and requests for disclosure of records by the Commission. The purpose of this rule is to allow the Commission access to the premises in order to inspect and ensure operators and vendors are complying with all laws pertaining to the operation of skill-based amusement machine operations.
  • 3772-50-15, titled “Advertising.” This rule outlines the guidelines skill-based amusement machine applicants or licensees must follow when advertising to Ohio patrons. The rule details prohibited methods of advertising and outlines the requirements that advertisements must comply with, including the advertisement of only state-approved machines and the requirement that the depiction of type-B machines only display those prizes that comply with rule 3772-50-01. The purpose of this rule is to protect Ohio patrons from deceptive and misleading advertisements.

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 October 12, 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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