March 17, 2021 CSI Filing

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 March 17, 2021: 

Brief Explanation of the Rules

The rules contained within this package are being reviewed pursuant to the state’s rule-review requirement in R.C. 106.03. The rules reviewed largely come from Ohio Adm.Code Chapters 3772-1 (General Provisions), -2 (Ohio Casino Control Commission), and -4 (Casino Operator, Management Company, and Holding Company Licenses). Many of the revisions are meant to improve clarity or readability, or to reduce redundancies.

Chapters 1 and 2 have been reworked to clarify when they apply, or more commonly, do not apply to the Ohio Casino Control Commission’s (“Commission”) skill games and fantasy sports contests regulatory structures, as the agency created Chapters for those industries that are largely self-contained. Chapter 4’s changes are largely aimed at reducing redundant restrictions, including the combination of rules 4-03, 4-04, and 4-05 into rules 4-01 and 4-02. Additionally, changes in terminology have been made throughout to better clarify when the rules are referring to the Commission as an agency versus when it is referring to the executive director or an action requiring a vote of the Commission members at a public meeting.

OAC Chapter 3772-1 (3 Rules)

*Click on the rule number to view proposed changes.*

3772-1-01 (amendment), titled “Definitions.” Presently, this rule defines words of general application for the purpose of providing consistent terminology. Most of the amendments to this rule are meant to clarify that these definitions only apply to the Commission’s casino gaming rules, as both skill games and fantasy contests have a sperate rule for definitions used in those regulatory structures, Ohio Adm.Code 3772-50-01 and 3772-74-01, respectively. Additionally, the rule adds a definition for the phrase “participate in conducting.” While the Commission has already been interpreting the phrase in the manner it is defined here, adding this definition should provide greater notice and clarity for stakeholders.

3772-1-04 (amendment), titled “Waivers and variances.” Presently, this rule specifies the process through which a requestor may seek a waiver from or variance to the provisions of rules adopted by the Commission. The purpose of this rule is to allow the Commission to regulate flexibly, based on what is in the best interest of the public. The amendment is largely meant to accomplish three goals. First, it clarifies that the rule only applies to the Commission’s casino gaming rules and borrows some language from the skill games and fantasy contest rules on this subject, clarifying that hearings do not apply to waiver or variance denials. Second, the amendment clarifies the ability of the Commission to grant waivers or variances on its own motion and to delegate waiver or variance request considerations. Third, the amendment codifies a long-standing delegation to the executive director to consider waivers of the three-year reapplication bar.

3772-1-07 (amendment), titled “Records retention requirements.” This rule requires those casino-gaming entities regulated by the Commission to keep records related to their operation for five years from their date of creation. The rule also requires these entities to organize these records and to produce them to the Commission, upon request. The purpose of this rule is to allow for a consistent expectation from the regulated community and the public in investigating past occurrences, while maintaining the orderly operation of casino gaming. The amendments to this rule are for clarity and readability.

OAC Chapter 3772-2 (1 Rule)

3772-2-06 (amendment), titled “Subpoena power.” This rule amplifies the Commission’s power to require testimony under oath and to issue subpoenas in the discharge of its duties under the Revised Code. The rule’s purpose is to clearly spell out the rules surrounding these compliance mechanisms for both stakeholders and the public. The changes to the rule are to clarify that the Commission’s duties and authority now extend beyond R.C. Chapter 3772 and to allow the Commission to impose discipline other than suspension or revocation of a license for refusing to comply with a subpoena.

OAC Chapter 4 (10 Rules)

*Click on a rule number to view proposed changes.*

3772-4-01 (amendment), titled “Instructions for the casino operator, management company, and holding company license application.” This rule provides detailed instructions, terms, and conditions for these entities to follow to complete an application. The purpose of this rule is to provide clear instructions and expectations to operators, management companies, and holding companies for how to complete and file an application. The rule is being amended to remove certain regulatory restrictions and redundancies, as well as to improve readability. In particular, the rule removes certain outdated restrictions on ensuring pages are initialed or completed in typed or block lettering. The rule also reorganizes some existing provisions of Ohio Adm.Code 3772-4-05 into 3772-4-01(R) to reduce redundancies.

3772-4-02 (amendment), titled “Information that must be provided by a casino operator, management company, or holding company license applicant.” Presently, the rule specifies the substantive information that must be provided to the Commission for the issuance of an operator license. The purpose of this rule is to ensure that these entities provide the Commission with enough information for the agency to determine whether they are eligible, capable, and suitable to obtain a license. The amendments to this rule improve readability and remove redundancies. For instance, the amendment removes several provisions that are already present in R.C. 3772.11. Additionally, many provisions of Ohio Adm.Code 3772-4-03 and 3772-4-04 were moved into this rule, as those rules were often duplicative of this one, and those provisions that were not duplicative did not require a separate rule.

3772-4-03 (rescind), titled “Facility plan.” Presently, the rule requires all applicants to submit detailed facility plans, including a plan for completion of the facility, estimated start-up costs, and capitalization. The rule is being rescinded as it was duplicative of the Revised Code and Ohio Adm.Code 3772-4-02. Those nonredundant restrictions were moved to Ohio Adm.Code 3772-4-02 to streamline the Administrative Code.

3772-4-03 (new), titled “Application fees.” This rule, while “new” due to it being recodified to Ohio Adm.Code 3772-4-03, is largely unchanged from its former existence as Ohio Adm.Code 3772-4-06. The rule, in its current form, prescribes the fees related to applying for a casino gaming operator, management company, or holding company license, amplifying R.C. 3772.15 and 3772.17. These fees are based on the status of an applicant: new or initial versus renewal, and the fees may be increased, if necessary, to cover the costs of the investigation. The purpose of this rule is to effectuate R.C. 3772.15 and 3772.17 and to ensure the Commission’s regulatory costs are covered. The changes to this rule from when it was Ohio Adm.Code 3772-4-06 are largely meant to streamline language and improve readability.

3772-4-04 (rescind), titled “Other required information.” Presently, the rule requires applicants to submit certain plans, including their responsible gaming plan and human resources policies, with their application. The rule is being rescinded as it was duplicative of the Revised Code and Ohio Adm.Code 3772-4-02. Those nonredundant restrictions were moved to Ohio Adm.Code 3772-4-02 to streamline the Administrative Code.

3772-4-04 (new), titled “License fees.” >This rule, while “new” due to it being recodified to Ohio Adm.Code 3772-4-04, is largely unchanged from its former existence as Ohio Adm.Code 3772-4-07. This rule sets the fees a casino gaming, management company, or holding company licensee must pay upon licensure. The fees are based upon the status of the applicant: initial versus new or renewal. The purpose of this rule is to effectuate R.C. 3772.15 and 3772.17 and to ensure the Commission’s regulatory costs are covered. The changes to this rule from when it was Ohio Adm.Code 3772-4-07 are largely meant to streamline language and improve readability.

3772-4-05 (rescind), titled “Casino operator, management company and holding company license application, license period and license renewal.” Presently, this rule governs the license period and renewal process for casino operators, management companies, and holding companies. This rule is being repealed because it is redundant with the Revised Code and Ohio Adm.Code 3772-4-01. Those nonredundant restrictions were moved to Ohio Adm.Code 3772-4-01 to streamline the Administrative Code.

3772-4-05 (new), titled “Affirmative license standards.” This rule, while “new” due to it being recodified to Ohio Adm.Code 3772-4-05, is largely unchanged from its former existence as Ohio Adm.Code 3772-4-08. This rule states the affirmative standards that a casino operator, management company, or holding company must meet before the Commission can grant the entity a license, including establishing the suitability of certain entities and persons by clear and convincing evidence. The purpose of this rule is to ensure the integrity of casino gaming by ensuring only those entities that are eligible, capable, and suitable may be issued a license. Many of those standards come from R.C. 3772.10, 3772.11, 3772.111, or 3772.112. The changes to this rule from when it was Ohio Adm.Code 3772-4-07 are largely meant to improve readability or to bring the rule language into harmony with present Commission practice.

3772-4-06 (rescind), titled “Application fees.” The present version of the rule is being “rescinded” to move the rule’s language to Ohio Adm.Code 3772-4-03.

3772-4-06 (new), titled “Duty to update information.” This rule, while “new” due to it being recodified to Ohio Adm.Code 3772-4-06, is largely unchanged from its former existence as Ohio Adm.Code 3772-4-09. The rule requires casino operators, management companies, and holding companies to update the Commission on information that has changed from the time of application that would affect the entity’s suitability for licensure. The purpose of this rule is to ensure that the Commission is aware of all circumstances that may affect an entity’s suitability for continued licensure. The changes to the rule from when it was Ohio Adm.Code 3772-4-09 are intended to improve readability by using more commonplace language.

3772-4-07 (rescind), titled “License fees.” This rule is being “rescinded” to move the rule’s language to Ohio Adm.Code 3772-4-04. This will help streamline the Administrative Code and make it more user friendly.

3772-4-08 (rescind), titled “Affirmative license standards.” This rule is being “rescinded” to move the rule’s language to Ohio Adm.Code 3772-4-05. This will help streamline the Administrative Code and make it more user friendly.

3772-4-09 (rescind), titled “Duty to update information.” This rule is being “rescinded” to move the rule’s language to Ohio Adm.Code 3772-4-06. This will help streamline the Administrative Code and make it more user friendly.

3772-4-11 (rescind), titled “Computation of gross casino revenue; assisting the tax commissioner.” The contents of this rule have been moved to Ohio Adm.Code 3772-10-04 to help streamline the Administrative Code and make it more user friendly.

OAC Chapter 10 (1 Rule)

*Click on the rule number to view proposed changes.*

3772-10-04 (amendment), titled “Accounting records.” This rule provides that casino operators shall have internal controls for preparing accounting records. The purpose of this rule is to ensure the Commission fulfills its statutory mandate to prescribe accounting-related standards. The amendment to this rule moves two statutorily required provisions on tax filing and reporting from Ohio Adm.Code 3772-4-11 to this rule to help streamline the Administrative Code and make it more user friendly. This rule is being filed solely to move these provisions and not for R.C. 106.03 review.

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 March 31, 2021.

Any questions or comments with respect to these rules may be directed to Matt Oyster via email at Matt.Oyster@casinocontrol.ohio.gov or U.S. Mail at 100 East Broad Street, 20th Floor, Columbus, Ohio 43215. Comments may also be directed to the CSI Office at csipubliccomments@governor.ohio.gov.


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