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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 298
2025-2026
Representatives Stewart, John
To
amend sections 109.572, 2915.01, 2915.02, 3123.90, 3769.08, 3772.01,
3772.02, 3772.03, 3772.031, 3772.04, 3772.062, 5747.02, 5747.063,
5747.20, 5751.01, 5753.01
,
5753.031
,
5753.04, 5753.05, 5753.07, 5753.08, and 5753.12 and to enact sections
3771.01, 3771.02, 3771.03, 3771.04, 3771.05, 3771.06, 3771.07,
3771.08, 3771.09, 3771.10, 3771.11, 3771.12, 3771.13, 3771.14,
3771.99, 5753.022, and 5753.032 of the Revised Code
to
legalize and regulate internet gambling in this state, to levy a tax
on businesses that provide internet gambling, and to prohibit online
sweepstakes games.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 109.572, 2915.01, 2915.02, 3123.90, 3769.08, 3772.01,
3772.02, 3772.03, 3772.031, 3772.04, 3772.062, 5747.02, 5747.063,
5747.20, 5751.01, 5753.01
,
5753.031
,
5753.04, 5753.05, 5753.07, 5753.08, and 5753.12 be amended and
sections 3771.01, 3771.02, 3771.03, 3771.04, 3771.05, 3771.06,
3771.07, 3771.08, 3771.09, 3771.10, 3771.11, 3771.12, 3771.13,
3771.14, 3771.99, 5753.022, and 5753.032 of the Revised Code be
enacted to read as follows:
Sec.
109.572.
(A)(1)
Upon receipt of a request pursuant to section 121.08, 3301.32,
3301.541, or 3319.39 of the Revised Code, a completed form prescribed
pursuant to division (C)(1) of this section, and a set of fingerprint
impressions obtained in the manner described in division (C)(2) of
this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any of the following:
(a)
A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.041,
2903.06, 2903.08, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21,
2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.32, 2907.02,
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,
2907.19, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32,
2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12,
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,
2923.17, 2923.21, 2923.42, 2925.02, 2925.03, 2925.04, 2925.041,
2925.05, 2925.06, 2925.13, 2925.22, 2925.23, 2925.24, 2925.31,
2925.32, 2925.36, 2925.37, or 3716.11 of the Revised Code, felonious
sexual penetration in violation of former section 2907.12 of the
Revised Code, a violation of section 2905.04 of the Revised Code as
it existed prior to July 1, 1996, a violation of section 2919.23 of
the Revised Code that would have been a violation of section 2905.04
of the Revised Code as it existed prior to July 1, 1996, had the
violation been committed prior to that date, or a violation of
section 2925.11 of the Revised Code that is not a minor drug
possession offense;
(b)
A violation of an existing or former law of this state, any other
state, or the United States that is substantially equivalent to any
of the offenses listed in division (A)(1)(a) of this section;
(c)
If the request is made pursuant to section 3319.39 of the Revised
Code for an applicant who is a teacher, any offense specified under
section 9.79 of the Revised Code or in section 3319.31 of the Revised
Code.
(2)
On receipt of a request pursuant to section 3712.09 or 3721.121 of
the Revised Code, a completed form prescribed pursuant to division
(C)(1) of this section, and a set of fingerprint impressions obtained
in the manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check with respect to
any person who has applied for employment in a position for which a
criminal records check is required by those sections. The
superintendent shall conduct the criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request previously has been convicted of or pleaded guilty to
any of the following:
(a)
A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11,
2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02,
2905.11, 2905.12, 2907.02, 2907.03, 2907.05, 2907.06, 2907.07,
2907.08, 2907.09, 2907.12, 2907.25, 2907.31, 2907.32, 2907.321,
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13,
2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40,
2913.43, 2913.47, 2913.51, 2919.25, 2921.36, 2923.12, 2923.13,
2923.161, 2925.02, 2925.03, 2925.11, 2925.13, 2925.22, 2925.23, or
3716.11 of the Revised Code;
(b)
An existing or former law of this state, any other state, or the
United States that is substantially equivalent to any of the offenses
listed in division (A)(2)(a) of this section.
(3)
On receipt of a request pursuant to section 173.27, 173.38, 173.381,
3740.11, 5119.34, 5164.34, 5164.341, 5164.342, 5123.081, or 5123.169
of the Revised Code, a completed form prescribed pursuant to division
(C)(1) of this section, and a set of fingerprint impressions obtained
in the manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check of the person
for whom the request is made. The superintendent shall conduct the
criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of, has pleaded guilty to, or (except
in the case of a request pursuant to section 5164.34, 5164.341, or
5164.342 of the Revised Code) has been found eligible for
intervention in lieu of conviction for any of the following,
regardless of the date of the conviction, the date of entry of the
guilty plea, or (except in the case of a request pursuant to section
5164.34, 5164.341, or 5164.342 of the Revised Code) the date the
person was found eligible for intervention in lieu of conviction:
(a)
A violation of section 959.13, 959.131, 2903.01, 2903.02, 2903.03,
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16,
2903.21, 2903.211, 2903.22, 2903.34, 2903.341, 2905.01, 2905.02,
2905.05, 2905.11, 2905.12, 2905.32, 2905.33, 2907.02, 2907.03,
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21,
2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32, 2907.321,
2907.322, 2907.323, 2907.33, 2909.02, 2909.03, 2909.04, 2909.22,
2909.23, 2909.24, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13,
2913.02, 2913.03, 2913.04, 2913.05, 2913.11, 2913.21, 2913.31,
2913.32, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44, 2913.441,
2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2913.51, 2917.01,
2917.02, 2917.03, 2917.31, 2919.12, 2919.121, 2919.123, 2919.124,
2919.22, 2919.23, 2919.24, 2919.25, 2921.03, 2921.11, 2921.12,
2921.13, 2921.21, 2921.24, 2921.32, 2921.321, 2921.34, 2921.35,
2921.36, 2921.51, 2923.12, 2923.122, 2923.123, 2923.13, 2923.161,
2923.162, 2923.21, 2923.32, 2923.42, 2925.02, 2925.03, 2925.04,
2925.041, 2925.05, 2925.06, 2925.09, 2925.11, 2925.13, 2925.14,
2925.22, 2925.23, 2925.24, 2925.36, 2925.55, 2925.56, 2927.12, or
3716.11 of the Revised Code;
(b)
Felonious sexual penetration in violation of former section 2907.12
of the Revised Code;
(c)
A violation of section 2905.04 of the Revised Code as it existed
prior to July 1, 1996;
(d)
A violation of section 2923.01, 2923.02, or 2923.03 of the Revised
Code when the underlying offense that is the object of the
conspiracy, attempt, or complicity is one of the offenses listed in
divisions (A)(3)(a) to (c) of this section;
(e)
A violation of an existing or former municipal ordinance or law of
this state, any other state, or the United States that is
substantially equivalent to any of the offenses listed in divisions
(A)(3)(a) to (d) of this section.
(4)
On receipt of a request pursuant to section 2151.86, 2151.904, or
5103.053 of the Revised Code, a completed form prescribed pursuant to
division (C)(1) of this section, and a set of fingerprint impressions
obtained in the manner described in division (C)(2) of this section,
the superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request previously has been convicted of or pleaded guilty to
any of the following:
(a)
A violation of section 959.13, 2151.421, 2903.01, 2903.02, 2903.03,
2903.04, 2903.041, 2903.06, 2903.08, 2903.11, 2903.12, 2903.13,
2903.15, 2903.16, 2903.21, 2903.211, 2903.22, 2903.32, 2903.34,
2905.01, 2905.02, 2905.05, 2905.32, 2907.02, 2907.03, 2907.04,
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.19, 2907.21,
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,
2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24, 2911.01,
2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02, 2919.12,
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2923.17,
2923.21, 2925.02, 2925.03, 2925.04, 2925.041, 2925.05, 2925.06,
2925.13, 2925.22, 2925.23, 2925.24, 2925.31, 2925.32, 2925.36,
2925.37, 2927.12, or 3716.11 of the Revised Code, a violation of
section 2905.04 of the Revised Code as it existed prior to July 1,
1996, a violation of section 2919.23 of the Revised Code that would
have been a violation of section 2905.04 of the Revised Code as it
existed prior to July 1, 1996, had the violation been committed prior
to that date, a violation of section 2925.11 of the Revised Code that
is not a minor drug possession offense, two or more OVI or OVUAC
violations committed within the three years immediately preceding the
submission of the application or petition that is the basis of the
request, or felonious sexual penetration in violation of former
section 2907.12 of the Revised Code, or a violation of Chapter 2919.
of the Revised Code that is a felony;
(b)
A violation of an existing or former law of this state, any other
state, or the United States that is substantially equivalent to any
of the offenses listed in division (A)(4)(a) of this section.
(5)
Upon receipt of a request pursuant to section 5104.013 of the Revised
Code, a completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request has been
convicted of or pleaded guilty to any of the following:
(a)
A violation of section 2151.421, 2903.01, 2903.02, 2903.03, 2903.04,
2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22, 2903.34,
2905.01, 2905.02, 2905.05, 2905.11, 2905.32, 2907.02, 2907.03,
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.19,
2907.21, 2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32,
2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 2909.04, 2909.05,
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2917.01,
2917.02, 2917.03, 2917.31, 2919.12, 2919.22, 2919.224, 2919.225,
2919.24, 2919.25, 2921.03, 2921.11, 2921.13, 2921.14, 2921.34,
2921.35, 2923.01, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code, felonious
sexual penetration in violation of former section 2907.12 of the
Revised Code, a violation of section 2905.04 of the Revised Code as
it existed prior to July 1, 1996, a violation of section 2919.23 of
the Revised Code that would have been a violation of section 2905.04
of the Revised Code as it existed prior to July 1, 1996, had the
violation been committed prior to that date, a violation of section
2925.11 of the Revised Code that is not a minor drug possession
offense, a violation of section 2923.02 or 2923.03 of the Revised
Code that relates to a crime specified in this division, or a second
violation of section 4511.19 of the Revised Code within five years of
the date of application for licensure or certification.
(b)
A violation of an existing or former law of this state, any other
state, or the United States that is substantially equivalent to any
of the offenses or violations described in division (A)(5)(a) of this
section.
(6)
Upon receipt of a request pursuant to section 5153.111 of the Revised
Code, a completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of or pleaded guilty to any of the
following:
(a)
A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11,
2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02,
2905.05, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07,
2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31,
2907.32, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 2911.01,
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,
2925.06, or 3716.11 of the Revised Code, felonious sexual penetration
in violation of former section 2907.12 of the Revised Code, a
violation of section 2905.04 of the Revised Code as it existed prior
to July 1, 1996, a violation of section 2919.23 of the Revised Code
that would have been a violation of section 2905.04 of the Revised
Code as it existed prior to July 1, 1996, had the violation been
committed prior to that date, or a violation of section 2925.11 of
the Revised Code that is not a minor drug possession offense;
(b)
A violation of an existing or former law of this state, any other
state, or the United States that is substantially equivalent to any
of the offenses listed in division (A)(6)(a) of this section.
(7)
On receipt of a request for a criminal records check from an
individual pursuant to section 4749.03 or 4749.06 of the Revised
Code, accompanied by a completed copy of the form prescribed in
division (C)(1) of this section and a set of fingerprint impressions
obtained in a manner described in division (C)(2) of this section,
the superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists indicating that the person who is the subject of
the request has been convicted of or pleaded guilty to any criminal
offense in this state or in any other state. If the individual
indicates that a firearm will be carried in the course of business,
the superintendent shall require information from the federal bureau
of investigation as described in division (B)(2) of this section.
Subject to division (F) of this section, the superintendent shall
report the findings of the criminal records check and any information
the federal bureau of investigation provides to the director of
public safety.
(8)
On receipt of a request pursuant to section 1321.37, 1321.53, or
4763.05 of the Revised Code, a completed form prescribed pursuant to
division (C)(1) of this section, and a set of fingerprint impressions
obtained in the manner described in division (C)(2) of this section,
the superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check with respect to
any person who has applied for a license, permit, or certification
from the department of commerce or a division in the department. The
superintendent shall conduct the criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request previously has been convicted of or pleaded guilty to
any criminal offense in this state, any other state, or the United
States.
(9)
On receipt of a request for a criminal records check from the
treasurer of state under section 113.041 of the Revised Code or from
an individual under section 928.03, 4701.08, 4715.101, 4717.061,
4725.121, 4725.501, 4729.071, 4729.53, 4729.90, 4729.92, 4730.101,
4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4747.051, 4751.20,
4751.201, 4751.21, 4753.061, 4755.70, 4757.101, 4759.061, 4760.032,
4760.06, 4761.051, 4762.031, 4762.06, 4774.031, 4774.06, 4776.021,
4778.04, 4778.07, 4779.091, or 4783.04 of the Revised Code,
accompanied by a completed form prescribed under division (C)(1) of
this section and a set of fingerprint impressions obtained in the
manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request has been convicted of or pleaded guilty to any
criminal offense in this state or any other state. Subject to
division (F) of this section, the superintendent shall send the
results of a check requested under section 113.041 of the Revised
Code to the treasurer of state and shall send the results of a check
requested under any of the other listed sections to the licensing
board specified by the individual in the request.
(10)
On receipt of a request pursuant to section 124.74, 718.131, 1121.23,
1315.141, 1733.47, or 1761.26 of the Revised Code, a completed form
prescribed pursuant to division (C)(1) of this section, and a set of
fingerprint impressions obtained in the manner described in division
(C)(2) of this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any criminal offense under any
existing or former law of this state, any other state, or the United
States.
(11)
On receipt of a request for a criminal records check from an
appointing or licensing authority under section 3772.07 of the
Revised Code, a completed form prescribed under division (C)(1) of
this section, and a set of fingerprint impressions obtained in the
manner prescribed in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request previously has been convicted of or pleaded guilty or
no contest to any offense under any existing or former law of this
state, any other state, or the United States that makes the person
ineligible for appointment or retention under section 3772.07 of the
Revised Code or that is a disqualifying offense as defined in that
section or substantially equivalent to a disqualifying offense, as
applicable.
(12)
On receipt of a request pursuant to section 2151.33 or 2151.412 of
the Revised Code, a completed form prescribed pursuant to division
(C)(1) of this section, and a set of fingerprint impressions obtained
in the manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check with respect to
any person for whom a criminal records check is required under that
section. The superintendent shall conduct the criminal records check
in the manner described in division (B) of this section to determine
whether any information exists that indicates that the person who is
the subject of the request previously has been convicted of or
pleaded guilty to any of the following:
(a)
A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11,
2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02,
2905.11, 2905.12, 2907.02, 2907.03, 2907.05, 2907.06, 2907.07,
2907.08, 2907.09, 2907.12, 2907.25, 2907.31, 2907.32, 2907.321,
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13,
2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40,
2913.43, 2913.47, 2913.51, 2919.25, 2921.36, 2923.12, 2923.13,
2923.161, 2925.02, 2925.03, 2925.11, 2925.13, 2925.22, 2925.23, or
3716.11 of the Revised Code;
(b)
An existing or former law of this state, any other state, or the
United States that is substantially equivalent to any of the offenses
listed in division (A)(12)(a) of this section.
(13)
On receipt of a request pursuant to section 3796.12 of the Revised
Code, a completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in a manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of or pleaded guilty to a disqualifying
offense as specified in rules adopted under section 9.79 and division
(B)(2)(b) of section 3796.03 of the Revised Code if the person who is
the subject of the request is an administrator or other person
responsible for the daily operation of, or an owner or prospective
owner, officer or prospective officer, or board member or prospective
board member of, an entity seeking a license from the department of
commerce under Chapter 3796. of the Revised Code.
(14)
On receipt of a request required by section 3796.13 of the Revised
Code, a completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in a manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of or pleaded guilty to a disqualifying
offense as specified in rules adopted under division (B)(14)(a) of
section 3796.03 of the Revised Code if the person who is the subject
of the request is seeking employment with an entity licensed by the
department of commerce under Chapter 3796. of the Revised Code.
(15)
On receipt of a request pursuant to section 4768.06 of the Revised
Code, a completed form prescribed under division (C)(1) of this
section, and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section to determine whether any information exists indicating
that the person who is the subject of the request has been convicted
of or pleaded guilty to any criminal offense in this state or in any
other state.
(16)
On receipt of a request pursuant to division (B) of section 4764.07
or division (A) of section 4735.143 of the Revised Code, a completed
form prescribed under division (C)(1) of this section, and a set of
fingerprint impressions obtained in the manner described in division
(C)(2) of this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists indicating that the person
who is the subject of the request has been convicted of or pleaded
guilty to any criminal offense in any state or the United States.
(17)
On receipt of a request for a criminal records check under section
147.022 of the Revised Code, a completed form prescribed under
division (C)(1) of this section, and a set of fingerprint impressions
obtained in the manner prescribed in division (C)(2) of this section,
the superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the subject
of the request previously has been convicted of or pleaded guilty or
no contest to any criminal offense under any existing or former law
of this state, any other state, or the United States.
(18)
Upon receipt of a request pursuant to division (F) of section
2915.081 or division (E) of section 2915.082 of the Revised Code, a
completed form prescribed under division (C)(1) of this section, and
a set of fingerprint impressions obtained in the manner described in
division (C)(2) of this section, the superintendent of the bureau of
criminal identification and investigation shall conduct a criminal
records check in the manner described in division (B) of this section
to determine whether any information exists indicating that the
person who is the subject of the request has been convicted of or
pleaded guilty or no contest to any offense that is a violation of
Chapter 2915. of the Revised Code or to any offense under any
existing or former law of this state, any other state, or the United
States that is substantially equivalent to such an offense.
(19)
On receipt of a request pursuant to section 3775.03 of the Revised
Code, a completed form prescribed under division (C)(1) of this
section, and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section and shall request information from the federal bureau of
investigation to determine whether any information exists indicating
that the person who is the subject of the request has been convicted
of any offense under any existing or former law of this state, any
other state, or the United States that is a disqualifying offense as
defined in section 3772.07 of the Revised Code.
(20)
On receipt of a request pursuant to section 3771.03 of the Revised
Code, a completed form prescribed under division (C)(1) of this
section, and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent of
the bureau of criminal identification and investigation shall conduct
a criminal records check in the manner described in division (B) of
this section and shall request information from the federal bureau of
investigation to determine whether any information exists indicating
that the person who is the subject of the request has been convicted
of any offense under any existing or former law of this state, any
other state, or the United States that is a disqualifying offense as
defined in section 3772.07 of the Revised Code.
(B)
Subject to division (F) of this section, the superintendent shall
conduct any criminal records check to be conducted under this section
as follows:
(1)
The superintendent shall review or cause to be reviewed any relevant
information gathered and compiled by the bureau under division (A) of
section 109.57 of the Revised Code that relates to the person who is
the subject of the criminal records check, including, if the criminal
records check was requested under section 113.041, 121.08, 124.74,
173.27, 173.38, 173.381, 718.131, 928.03, 1121.23, 1315.141, 1321.37,
1321.53, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39,
3740.11, 3712.09, 3721.121,
3771.03,
3772.07,
3775.03, 3796.12, 3796.13, 4729.071, 4729.53, 4729.90, 4729.92,
4749.03, 4749.06, 4763.05, 4764.07, 4768.06, 5103.053, 5104.013,
5164.34, 5164.341, 5164.342, 5123.081, 5123.169, or 5153.111 of the
Revised Code, any relevant information contained in records that have
been sealed under section 2953.32 of the Revised Code;
(2)
If the request received by the superintendent asks for information
from the federal bureau of investigation, the superintendent shall
request from the federal bureau of investigation any information it
has with respect to the person who is the subject of the criminal
records check, including fingerprint-based checks of national crime
information databases as described in 42 U.S.C. 671 if the request is
made pursuant to section 2151.86, 5103.053, or 5104.013 of the
Revised Code or if any other Revised Code section requires
fingerprint-based checks of that nature, and shall review or cause to
be reviewed any information the superintendent receives from that
bureau. If a request under section 3319.39 of the Revised Code asks
only for information from the federal bureau of investigation, the
superintendent shall not conduct the review prescribed by division
(B)(1) of this section.
(3)
The superintendent or the superintendent's designee may request
criminal history records from other states or the federal government
pursuant to the national crime prevention and privacy compact set
forth in section 109.571 of the Revised Code.
(4)
The superintendent shall include in the results of the criminal
records check a list or description of the offenses listed or
described in the relevant provision of division (A) of this section.
The superintendent shall exclude from the results any information the
dissemination of which is prohibited by federal law.
(5)
The superintendent shall send the results of the criminal records
check to the person to whom it is to be sent not later than the
following number of days after the date the superintendent receives
the request for the criminal records check, the completed form
prescribed under division (C)(1) of this section, and the set of
fingerprint impressions obtained in the manner described in division
(C)(2) of this section:
(a)
If the superintendent is required by division (A) of this section
(other than division (A)(3) of this section) to conduct the criminal
records check, thirty;
(b)
If the superintendent is required by division (A)(3) of this section
to conduct the criminal records check, sixty.
(C)(1)
The superintendent shall prescribe a form to obtain the information
necessary to conduct a criminal records check from any person for
whom a criminal records check is to be conducted under this section.
The form that the superintendent prescribes pursuant to this division
may be in a tangible format, in an electronic format, or in both
tangible and electronic formats.
(2)
The superintendent shall prescribe standard impression sheets to
obtain the fingerprint impressions of any person for whom a criminal
records check is to be conducted under this section. Any person for
whom a records check is to be conducted under this section shall
obtain the fingerprint impressions at a county sheriff's office,
municipal police department, or any other entity with the ability to
make fingerprint impressions on the standard impression sheets
prescribed by the superintendent. The office, department, or entity
may charge the person a reasonable fee for making the impressions.
The standard impression sheets the superintendent prescribes pursuant
to this division may be in a tangible format, in an electronic
format, or in both tangible and electronic formats.
(3)
Subject to division (D) of this section, the superintendent shall
prescribe and charge a reasonable fee for providing a criminal
records check under this section. The person requesting the criminal
records check shall pay the fee prescribed pursuant to this division.
In the case of a request under section 1121.23, 1155.03, 1163.05,
1315.141, 1733.47, 1761.26, 2151.33, 2151.412, or 5164.34 of the
Revised Code, the fee shall be paid in the manner specified in that
section.
(4)
The superintendent of the bureau of criminal identification and
investigation may prescribe methods of forwarding fingerprint
impressions and information necessary to conduct a criminal records
check, which methods shall include, but not be limited to, an
electronic method.
(D)
The results of a criminal records check conducted under this section,
other than a criminal records check specified in division (A)(7) of
this section, are valid for the person who is the subject of the
criminal records check for a period of one year from the date upon
which the superintendent completes the criminal records check. If
during that period the superintendent receives another request for a
criminal records check to be conducted under this section for that
person, the superintendent shall provide the results from the
previous criminal records check of the person at a lower fee than the
fee prescribed for the initial criminal records check.
(E)
When the superintendent receives a request for information from a
registered private provider, the superintendent shall proceed as if
the request was received from a school district board of education
under section 3319.39 of the Revised Code. The superintendent shall
apply division (A)(1)(c) of this section to any such request for an
applicant who is a teacher.
(F)(1)
Subject to division (F)(2) of this section, all information regarding
the results of a criminal records check conducted under this section
that the superintendent reports or sends under division (A)(7) or (9)
of this section to the director of public safety, the treasurer of
state, or the person, board, or entity that made the request for the
criminal records check shall relate to the conviction of the subject
person, or the subject person's plea of guilty to, a criminal
offense.
(2)
Division (F)(1) of this section does not limit, restrict, or preclude
the superintendent's release of information that relates to the
arrest of a person who is eighteen years of age or older, to an
adjudication of a child as a delinquent child, or to a criminal
conviction of a person under eighteen years of age in circumstances
in which a release of that nature is authorized under division
(E)(2), (3), or (4) of section 109.57 of the Revised Code pursuant to
a rule adopted under division (E)(1) of that section.
(G)
As used in this section:
(1)
"Criminal records check" means any criminal records check
conducted by the superintendent of the bureau of criminal
identification and investigation in accordance with division (B) of
this section.
(2)
"Minor drug possession offense" has the same meaning as in
section 2925.01 of the Revised Code.
(3)
"OVI or OVUAC violation" means a violation of section
4511.19 of the Revised Code or a violation of an existing or former
law of this state, any other state, or the United States that is
substantially equivalent to section 4511.19 of the Revised Code.
(4)
"Registered private provider" means a nonpublic school or
entity registered with the department of education and workforce
under section 3310.41 of the Revised Code to participate in the
autism scholarship program or section 3310.58 of the Revised Code to
participate in the Jon Peterson special needs scholarship program.
Sec.
2915.01.
As
used in this chapter:
(A)
"Bookmaking" means the business of receiving or paying off
bets.
(B)
"Bet" means the hazarding of anything of value upon the
result of an event, undertaking, or contingency, but does not include
a bona fide business risk.
(C)
"Scheme of chance" means a slot machine unless authorized
under Chapter
3771.
or
3772.
of the Revised Code, lottery unless authorized under Chapter 3770. of
the Revised Code, numbers game, pool conducted for profit, or other
scheme in which a participant gives a valuable consideration for a
chance to win a prize, but does not include bingo, a skill-based
amusement machine, or a pool not conducted for profit. "Scheme
of chance" includes the use of an electronic device to reveal
the results of a game entry if valuable consideration is paid,
directly or indirectly, for a chance to win a prize. Valuable
consideration is deemed to be paid for a chance to win a prize in the
following instances:
(1)
Less than fifty per cent of the goods or services sold by a scheme of
chance operator in exchange for game entries are used or redeemed by
participants at any one location;
(2)
Less than fifty per cent of participants who purchase goods or
services at any one location do not accept, use, or redeem the goods
or services sold or purportedly sold;
(3)
More than fifty per cent of prizes at any one location are revealed
to participants through an electronic device simulating a game of
chance or a "casino game" as defined in section 3772.01 of
the Revised Code;
(4)
The good or service sold by a scheme of chance operator in exchange
for a game entry cannot be used or redeemed in the manner advertised;
(5)
A participant pays more than fair market value for goods or services
offered by a scheme of chance operator in order to receive one or
more game entries;
(6)
A participant may use the electronic device to purchase additional
game entries;
(7)
A participant may purchase additional game entries by using points or
credits won as prizes while using the electronic device;
(8)
A scheme of chance operator pays out in prize money more than twenty
per cent of the gross revenue received at one location; or
(9)
A participant makes a purchase or exchange in order to obtain any
good or service that may be used to facilitate play on the electronic
device.
As
used in this division, "electronic device" means a
mechanical, video, digital, or electronic machine or device that is
capable of displaying information on a screen or other mechanism and
that is owned, leased, or otherwise possessed by any person
conducting a scheme of chance, or by that person's partners,
affiliates, subsidiaries, or contractors. "Electronic device"
does not include an electronic instant bingo system.
(D)
"Game of chance" means poker, craps, roulette, or other
game in which a player gives anything of value in the hope of gain,
the outcome of which is determined largely by chance, but does not
include bingo.
(E)
"Game of chance conducted for profit" means any game of
chance designed to produce income for the person who conducts or
operates the game of chance, but does not include bingo.
(F)
"Gambling device" means any of the following:
(1)
A book, totalizer, or other equipment for recording bets;
(2)
A ticket, token, or other device representing a chance, share, or
interest in a scheme of chance or evidencing a bet;
(3)
A deck of cards, dice, gaming table, roulette wheel, slot machine, or
other apparatus designed for use in connection with a game of chance;
(4)
Any equipment, device, apparatus, or paraphernalia specially designed
for gambling purposes;
(5)
Bingo supplies sold or otherwise provided, or used, in violation of
this chapter.
(G)
"Gambling offense" means any of the following:
(1)
A violation of this chapter;
(2)
A violation of an existing or former municipal ordinance or law of
this or any other state or the United States substantially equivalent
to any provision of this chapter or a violation of section 2915.06 of
the Revised Code as it existed prior to July 1, 1996;
(3)
An offense under an existing or former municipal ordinance or law of
this or any other state or the United States, of which gambling is an
element;
(4)
A conspiracy or attempt to commit, or complicity in committing, any
offense under division (G)(1), (2), or (3) of this section.
(H)
Except as otherwise provided in this chapter, "charitable
organization" means either of the following:
(1)
An organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code;
(2)
A volunteer rescue service organization, volunteer firefighter's
organization, veteran's organization, fraternal organization, or
sporting organization that is exempt from federal income taxation
under subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of
the Internal Revenue Code.
To
qualify as a "charitable organization," an organization
shall have been in continuous existence as such in this state for a
period of two years immediately preceding either the making of an
application for a bingo license under section 2915.08 of the Revised
Code or the conducting of any game of chance as provided in division
(D) of section 2915.02 of the Revised Code.
(I)
"Religious organization" means any church, body of
communicants, or group that is not organized or operated for profit
and that gathers in common membership for regular worship and
religious observances.
(J)
"Veteran's organization" means any individual post or state
headquarters of a national veteran's association or an auxiliary unit
of any individual post of a national veteran's association, which
post, state headquarters, or auxiliary unit is incorporated as a
nonprofit corporation and either has received a letter from the state
headquarters of the national veteran's association indicating that
the individual post or auxiliary unit is in good standing with the
national veteran's association or has received a letter from the
national veteran's association indicating that the state headquarters
is in good standing with the national veteran's association. As used
in this division, "national veteran's association" means
any veteran's association that has been in continuous existence as
such for a period of at least five years and either is incorporated
by an act of the United States congress or has a national dues-paying
membership of at least five thousand persons.
(K)
"Volunteer firefighter's organization" means any
organization of volunteer firefighters, as defined in section 146.01
of the Revised Code, that is organized and operated exclusively to
provide financial support for a volunteer fire department or a
volunteer fire company and that is recognized or ratified by a
county, municipal corporation, or township.
(L)
"Fraternal organization" means any society, order, state
headquarters, or association within this state, except a college or
high school fraternity, that is not organized for profit, that is a
branch, lodge, or chapter of a national or state organization, that
exists exclusively for the common business or sodality of its
members.
(M)
"Volunteer rescue service organization" means any
organization of volunteers organized to function as an emergency
medical service organization, as defined in section 4765.01 of the
Revised Code.
(N)
"Charitable bingo game" means any bingo game described in
division (O)(1) or (2) of this section that is conducted by a
charitable organization that has obtained a license pursuant to
section 2915.08 of the Revised Code and the proceeds of which are
used for a charitable purpose.
(O)
"Bingo" means either of the following:
(1)
A game with all of the following characteristics:
(a)
The participants use bingo cards or sheets, including paper formats
and electronic representation or image formats, that are divided into
twenty-five spaces arranged in five horizontal and five vertical rows
of spaces, with each space, except the central space, being
designated by a combination of a letter and a number and with the
central space being designated as a free space.
(b)
The participants cover the spaces on the bingo cards or sheets that
correspond to combinations of letters and numbers that are announced
by a bingo game operator.
(c)
A bingo game operator announces combinations of letters and numbers
that appear on objects that a bingo game operator selects by chance,
either manually or mechanically, from a receptacle that contains
seventy-five objects at the beginning of each game, each object
marked by a different combination of a letter and a number that
corresponds to one of the seventy-five possible combinations of a
letter and a number that can appear on the bingo cards or sheets.
(d)
The winner of the bingo game includes any participant who properly
announces during the interval between the announcements of letters
and numbers as described in division (O)(1)(c) of this section, that
a predetermined and preannounced pattern of spaces has been covered
on a bingo card or sheet being used by the participant.
(2)
Instant bingo, electronic instant bingo, and raffles.
(P)
"Conduct" means to back, promote, organize, manage, carry
on, sponsor, or prepare for the operation of bingo or a game of
chance, a scheme of chance,
or
a
sweepstakes
,
or an online sweepstakes game
.
(Q)
"Bingo game operator" means any person, except security
personnel, who performs work or labor at the site of bingo,
including, but not limited to, collecting money from participants,
handing out bingo cards or sheets or objects to cover spaces on bingo
cards or sheets, selecting from a receptacle the objects that contain
the combination of letters and numbers that appear on bingo cards or
sheets, calling out the combinations of letters and numbers,
distributing prizes, selling or redeeming instant bingo tickets or
cards, selling or redeeming electronic instant bingo tickets,
credits, or vouchers, accessing an electronic instant bingo system
other than as a participant, supervising the operation of a punch
board, selling raffle tickets, selecting raffle tickets from a
receptacle and announcing the winning numbers in a raffle, and
preparing, selling, and serving food or beverages. "Bingo game
operator" does not include a person who is installing,
maintaining, updating, or repairing an electronic instant bingo
system.
(R)
"Participant" means any person who plays bingo.
(S)
"Bingo session" means a period that includes both of the
following:
(1)
Not to exceed five continuous hours for the conduct of one or more
games described in division (O)(1) of this section, instant bingo,
and electronic instant bingo;
(2)
A period for the conduct of instant bingo and electronic instant
bingo for not more than two hours before and not more than two hours
after the period described in division (S)(1) of this section.
(T)
"Gross receipts" means all money or assets, including
admission fees, that a person receives from bingo without the
deduction of any amounts for prizes paid out or for the expenses of
conducting bingo. "Gross receipts" does not include any
money directly taken in from the sale of food or beverages by a
charitable organization conducting bingo, or by a bona fide auxiliary
unit or society of a charitable organization conducting bingo,
provided all of the following apply:
(1)
The auxiliary unit or society has been in existence as a bona fide
auxiliary unit or society of the charitable organization for at least
two years prior to conducting bingo.
(2)
The person who purchases the food or beverage receives nothing of
value except the food or beverage and items customarily received with
the purchase of that food or beverage.
(3)
The food and beverages are sold at customary and reasonable prices.
(U)
"Security personnel" includes any person who either is a
sheriff, deputy sheriff, marshal, deputy marshal, township constable,
or member of an organized police department of a municipal
corporation or has successfully completed a peace officer's training
course pursuant to sections 109.71 to 109.79 of the Revised Code and
who is hired to provide security for the premises on which bingo is
conducted.
(V)
"Charitable purpose" means that the net profit of bingo,
other than instant bingo or electronic instant bingo, is used by, or
is given, donated, or otherwise transferred to, any of the following:
(1)
Any organization that is described in subsection 509(a)(1),
509(a)(2), or 509(a)(3) of the Internal Revenue Code and is either a
governmental unit or an organization that is tax exempt under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code;
(2)
A veteran's organization that is a post, chapter, or organization of
veterans, or an auxiliary unit or society of, or a trust or
foundation for, any such post, chapter, or organization organized in
the United States or any of its possessions, at least seventy-five
per cent of the members of which are veterans and substantially all
of the other members of which are individuals who are spouses,
widows, or widowers of veterans, or such individuals, provided that
no part of the net earnings of such post, chapter, or organization
inures to the benefit of any private shareholder or individual, and
further provided that the net profit is used by the post, chapter, or
organization for the charitable purposes set forth in division
(B)(12) of section 5739.02 of the Revised Code, is used for awarding
scholarships to or for attendance at an institution mentioned in
division (B)(12) of section 5739.02 of the Revised Code, is donated
to a governmental agency, or is used for nonprofit youth activities,
the purchase of United States or Ohio flags that are donated to
schools, youth groups, or other bona fide nonprofit organizations,
promotion of patriotism, or disaster relief;
(3)
A fraternal organization that has been in continuous existence in
this state for fifteen years and that uses the net profit exclusively
for religious, charitable, scientific, literary, or educational
purposes, or for the prevention of cruelty to children or animals, if
contributions for such use would qualify as a deductible charitable
contribution under subsection 170 of the Internal Revenue Code;
(4)
A volunteer firefighter's organization that uses the net profit for
the purposes set forth in division (K) of this section.
(W)
"Internal Revenue Code" means the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter
amended.
(X)
"Youth athletic organization" means any organization, not
organized for profit, that is organized and operated exclusively to
provide financial support to, or to operate, athletic activities for
persons who are twenty-one years of age or younger by means of
sponsoring, organizing, operating, or contributing to the support of
an athletic team, club, league, or association.
(Y)
"Youth athletic park organization" means any organization,
not organized for profit, that satisfies both of the following:
(1)
It owns, operates, and maintains playing fields that satisfy both of
the following:
(a)
The playing fields are used for athletic activities by one or more
organizations, not organized for profit, each of which is organized
and operated exclusively to provide financial support to, or to
operate, athletic activities for persons who are eighteen years of
age or younger by means of sponsoring, organizing, operating, or
contributing to the support of an athletic team, club, league, or
association.
(b)
The playing fields are not used for any profit-making activity at any
time during the year.
(2)
It uses the proceeds of bingo it conducts exclusively for the
operation, maintenance, and improvement of its playing fields of the
type described in division (Y)(1) of this section.
(Z)
"Bingo supplies" means bingo cards or sheets; instant bingo
tickets or cards; electronic bingo aids; raffle tickets; punch
boards; seal cards; instant bingo ticket dispensers; electronic
instant bingo systems; and devices for selecting or displaying the
combination of bingo letters and numbers or raffle tickets. Items
that are "bingo supplies" are not gambling devices if sold
or otherwise provided, and used, in accordance with this chapter. For
purposes of this chapter, "bingo supplies" are not to be
considered equipment used to conduct a bingo game.
(AA)
"Instant bingo" means a form of bingo that shall use folded
or banded tickets or paper cards with perforated break-open tabs, a
face of which is covered or otherwise hidden from view to conceal a
number, letter, or symbol, or set of numbers, letters, or symbols,
some of which have been designated in advance as prize winners, and
may also include games in which some winners are determined by the
random selection of one or more bingo numbers by the use of a seal
card or bingo blower. "Instant bingo" also includes a punch
board game. In all "instant bingo" the prize amount and
structure shall be predetermined. "Instant bingo" does not
include electronic instant bingo or any device that is activated by
the insertion of a coin, currency, token, or an equivalent, and that
contains as one of its components a video display monitor that is
capable of displaying numbers, letters, symbols, or characters in
winning or losing combinations.
(BB)
"Seal card" means a form of instant bingo that uses instant
bingo tickets in conjunction with a board or placard that contains
one or more seals that, when removed or opened, reveal predesignated
winning numbers, letters, or symbols.
(CC)
"Raffle" means a form of bingo in which the one or more
prizes are won by one or more persons who have purchased a raffle
ticket. The one or more winners of the raffle are determined by
drawing a ticket stub or other detachable section from a receptacle
containing ticket stubs or detachable sections corresponding to all
tickets sold for the raffle. "Raffle" does not include the
drawing of a ticket stub or other detachable section of a ticket
purchased to attend a professional sporting event if both of the
following apply:
(1)
The ticket stub or other detachable section is used to select the
winner of a free prize given away at the professional sporting event;
and
(2)
The cost of the ticket is the same as the cost of a ticket to the
professional sporting event on days when no free prize is given away.
(DD)
"Punch board" means a form of instant bingo that uses a
board containing a number of holes or receptacles of uniform size in
which are placed, mechanically and randomly, serially numbered slips
of paper that may be punched or drawn from the hole or receptacle. A
player may punch or draw the numbered slips of paper from the holes
or receptacles and obtain the prize established for the game if the
number drawn corresponds to a winning number or, if the punch board
includes the use of a seal card, a potential winning number.
(EE)
"Gross profit" means gross receipts minus the amount
actually expended for the payment of prize awards.
(FF)
"Net profit" means gross profit minus expenses.
(GG)
"Expenses" means the reasonable amount of gross profit
actually expended for all of the following:
(1)
The purchase or lease of bingo supplies;
(2)
The annual license fee required under section 2915.08 of the Revised
Code;
(3)
Bank fees and service charges for a bingo session or game account
described in section 2915.10 of the Revised Code;
(4)
Audits and accounting services;
(5)
Safes;
(6)
Cash registers;
(7)
Hiring security personnel;
(8)
Advertising bingo;
(9)
Renting premises in which to conduct a bingo session;
(10)
Tables and chairs;
(11)
Expenses for maintaining and operating a charitable organization's
facilities, including, but not limited to, a post home, club house,
lounge, tavern, or canteen and any grounds attached to the post home,
club house, lounge, tavern, or canteen;
(12)
Payment of real property taxes and assessments that are levied on a
premises on which bingo is conducted;
(13)
Any other product or service directly related to the conduct of bingo
that is authorized in rules adopted by the attorney general under
division (F)(1) of section 2915.08 of the Revised Code.
(HH)
"Person" has the same meaning as in section 1.59 of the
Revised Code and includes any firm or any other legal entity, however
organized.
(II)
"Revoke" means to void permanently all rights and
privileges of the holder of a license issued under section 2915.08,
2915.081, or 2915.082 of the Revised Code or a charitable gaming
license issued by another jurisdiction.
(JJ)
"Suspend" means to interrupt temporarily all rights and
privileges of the holder of a license issued under section 2915.08,
2915.081, or 2915.082 of the Revised Code or a charitable gaming
license issued by another jurisdiction.
(KK)
"Distributor" means any person who purchases or obtains
bingo supplies and who does either of the following:
(1)
Sells, offers for sale, or otherwise provides or offers to provide
the bingo supplies to another person for use in this state;
(2)
Modifies, converts, adds to, or removes parts from the bingo supplies
to further their promotion or sale for use in this state.
(LL)
"Manufacturer" means any person who assembles completed
bingo supplies from raw materials, other items, or subparts or who
modifies, converts, adds to, or removes parts from bingo supplies to
further their promotion or sale.
(MM)
"Gross annual revenues" means the annual gross receipts
derived from the conduct of bingo described in division (O)(1) of
this section plus the annual net profit derived from the conduct of
bingo described in division (O)(2) of this section.
(NN)
"Instant bingo ticket dispenser" means a mechanical device
that dispenses an instant bingo ticket or card as the sole item of
value dispensed and that has the following characteristics:
(1)
It is activated upon the insertion of United States currency.
(2)
It performs no gaming functions.
(3)
It does not contain a video display monitor or generate noise.
(4)
It is not capable of displaying any numbers, letters, symbols, or
characters in winning or losing combinations.
(5)
It does not simulate or display rolling or spinning reels.
(6)
It is incapable of determining whether a dispensed bingo ticket or
card is a winning or nonwinning ticket or card and requires a winning
ticket or card to be paid by a bingo game operator.
(7)
It may provide accounting and security features to aid in accounting
for the instant bingo tickets or cards it dispenses.
(8)
It is not part of an electronic network and is not interactive.
(OO)(1)
"Electronic bingo aid" means an electronic device used by a
participant to monitor bingo cards or sheets purchased at the time
and place of a bingo session and that does all of the following:
(a)
It provides a means for a participant to input numbers and letters
announced by a bingo caller.
(b)
It compares the numbers and letters entered by the participant to the
bingo faces previously stored in the memory of the device.
(c)
It identifies a winning bingo pattern.
(2)
"Electronic bingo aid" does not include any device into
which a coin, currency, token, or an equivalent is inserted to
activate play.
(PP)
"Deal" means a single game of instant bingo tickets, or a
single game of electronic instant bingo tickets, all with the same
serial number.
(QQ)(1)
"Slot machine" means either of the following:
(a)
Any mechanical, electronic, video, or digital device that is capable
of accepting anything of value, directly or indirectly, from or on
behalf of a player who gives the thing of value in the hope of gain;
(b)
Any mechanical, electronic, video, or digital device that is capable
of accepting anything of value, directly or indirectly, from or on
behalf of a player to conduct bingo or a scheme or game of chance.
(2)
"Slot machine" does not include a skill-based amusement
machine, an instant bingo ticket dispenser, or an electronic instant
bingo system.
(RR)
"Net profit from the proceeds of the sale of instant bingo or
electronic instant bingo" means gross profit minus the ordinary,
necessary, and reasonable expense expended for the purchase of bingo
supplies for the purpose of conducting instant bingo or electronic
instant bingo, and, in the case of instant bingo or electronic
instant bingo conducted by a veteran's, fraternal, or sporting
organization, minus the payment by that organization of real property
taxes and assessments levied on a premises on which instant bingo or
electronic instant bingo is conducted.
(SS)
"Charitable instant bingo organization" means an
organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code and is a charitable organization as defined in
this section. A "charitable instant bingo organization"
does not include a charitable organization that is exempt from
federal income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code and that is created
by a veteran's organization, a fraternal organization, or a sporting
organization in regards to bingo conducted or assisted by a veteran's
organization, a fraternal organization, or a sporting organization
pursuant to section 2915.13 of the Revised Code.
(TT)
"Game flare" means the board or placard, or electronic
representation of a board or placard, that accompanies each deal of
instant bingo or electronic instant bingo tickets and that includes
the following information for the game:
(1)
The name of the game;
(2)
The manufacturer's name or distinctive logo;
(3)
The form number;
(4)
The ticket count;
(5)
The prize structure, including the number of winning tickets by
denomination and the respective winning symbol or number combinations
for the winning tickets;
(6)
The cost per play;
(7)
The serial number of the game.
(UU)(1)
"Skill-based amusement machine" means a mechanical, video,
digital, or electronic device that rewards the player or players, if
at all, only with merchandise prizes or with redeemable vouchers
redeemable only for merchandise prizes, provided that with respect to
rewards for playing the game all of the following apply:
(a)
The wholesale value of a merchandise prize awarded as a result of the
single play of a machine does not exceed ten dollars;
(b)
Redeemable vouchers awarded for any single play of a machine are not
redeemable for a merchandise prize with a wholesale value of more
than ten dollars;
(c)
Redeemable vouchers are not redeemable for a merchandise prize that
has a wholesale value of more than ten dollars times the fewest
number of single plays necessary to accrue the redeemable vouchers
required to obtain that prize; and
(d)
Any redeemable vouchers or merchandise prizes are distributed at the
site of the skill-based amusement machine at the time of play.
A
card for the purchase of gasoline is a redeemable voucher for
purposes of division (UU)(1) of this section even if the skill-based
amusement machine for the play of which the card is awarded is
located at a place where gasoline may not be legally distributed to
the public or the card is not redeemable at the location of, or at
the time of playing, the skill-based amusement machine.
(2)
A device shall not be considered a skill-based amusement machine and
shall be considered a slot machine if it pays cash or one or more of
the following apply:
(a)
The ability of a player to succeed at the game is impacted by the
number or ratio of prior wins to prior losses of players playing the
game.
(b)
Any reward of redeemable vouchers is not based solely on the player
achieving the object of the game or the player's score;
(c)
The outcome of the game, or the value of the redeemable voucher or
merchandise prize awarded for winning the game, can be controlled by
a source other than any player playing the game.
(d)
The success of any player is or may be determined by a chance event
that cannot be altered by player actions.
(e)
The ability of any player to succeed at the game is determined by
game features not visible or known to the player.
(f)
The ability of the player to succeed at the game is impacted by the
exercise of a skill that no reasonable player could exercise.
(3)
All of the following apply to any machine that is operated as
described in division (UU)(1) of this section:
(a)
As used in division (UU) of this section, "game" and "play"
mean one event from the initial activation of the machine until the
results of play are determined without payment of additional
consideration. An individual utilizing a machine that involves a
single game, play, contest, competition, or tournament may be awarded
redeemable vouchers or merchandise prizes based on the results of
play.
(b)
Advance play for a single game, play, contest, competition, or
tournament participation may be purchased. The cost of the contest,
competition, or tournament participation may be greater than a single
noncontest, competition, or tournament play.
(c)
To the extent that the machine is used in a contest, competition, or
tournament, that contest, competition, or tournament has a defined
starting and ending date and is open to participants in competition
for scoring and ranking results toward the awarding of redeemable
vouchers or merchandise prizes that are stated prior to the start of
the contest, competition, or tournament.
(4)
For purposes of division (UU)(1) of this section, the mere presence
of a device, such as a pin-setting, ball-releasing, or scoring
mechanism, that does not contribute to or affect the outcome of the
play of the game does not make the device a skill-based amusement
machine.
(VV)
"Merchandise prize" means any item of value, but shall not
include any of the following:
(1)
Cash, gift cards, or any equivalent thereof;
(2)
Plays on games of chance, state lottery tickets, or bingo;
(3)
Firearms, tobacco, or alcoholic beverages; or
(4)
A redeemable voucher that is redeemable for any of the items listed
in division (VV)(1), (2), or (3) of this section.
(WW)
"Redeemable voucher" means any ticket, token, coupon,
receipt, or other noncash representation of value.
(XX)
"Pool not conducted for profit" means a scheme in which a
participant gives a valuable consideration for a chance to win a
prize and the total amount of consideration wagered is distributed to
a participant or participants.
(YY)
"Sporting organization" means a hunting, fishing, or
trapping organization, other than a college or high school fraternity
or sorority, that is not organized for profit, that is affiliated
with a state or national sporting organization, including but not
limited to, the league of Ohio sportsmen, and that has been in
continuous existence in this state for a period of three years.
(ZZ)
"Community action agency" has the same meaning as in
section 122.66 of the Revised Code.
(AAA)(1)
"Sweepstakes terminal device" means a mechanical, video,
digital, or electronic machine or device that is owned, leased, or
otherwise possessed by any person conducting a sweepstakes, or by
that person's partners, affiliates, subsidiaries, or contractors,
that is intended to be used by a sweepstakes participant, and that is
capable of displaying information on a screen or other mechanism. A
device is a sweepstakes terminal device if any of the following
apply:
(a)
The device uses a simulated game terminal as a representation of the
prizes associated with the results of the sweepstakes entries.
(b)
The device utilizes software such that the simulated game influences
or determines the winning of or value of the prize.
(c)
The device selects prizes from a predetermined finite pool of
entries.
(d)
The device utilizes a mechanism that reveals the content of a
predetermined sweepstakes entry.
(e)
The device predetermines the prize results and stores those results
for delivery at the time the sweepstakes entry results are revealed.
(f)
The device utilizes software to create a game result.
(g)
The device reveals the prize incrementally, even though the device
does not influence the awarding of the prize or the value of any
prize awarded.
(h)
The device determines and associates the prize with an entry or
entries at the time the sweepstakes is entered.
(2)
As used in this division and in section 2915.02 of the Revised Code:
(a)
"Enter" means the act by which a person becomes eligible to
receive any prize offered in a sweepstakes.
(b)
"Entry" means one event from the initial activation of the
sweepstakes terminal device until all the sweepstakes prize results
from that activation are revealed.
(c)
"Prize" means any gift, award, gratuity, good, service,
credit, reward, or any other thing of value that may be transferred
to a person, whether possession of the prize is actually transferred,
or placed on an account or other record as evidence of the intent to
transfer the prize.
(d)
"Sweepstakes terminal device facility" means any location
in this state where a sweepstakes terminal device is provided to a
sweepstakes participant, except as provided in division (G) of
section 2915.02 of the Revised Code.
(BBB)
"Sweepstakes" means any game, contest, advertising scheme
or plan, or other promotion where consideration is not required for a
person to enter to win or become eligible to receive any prize, the
determination of which is based upon chance. "Sweepstakes"
does not include bingo as authorized under this chapter, pari-mutuel
wagering as authorized by Chapter 3769. of the Revised Code,
lotteries conducted by the state lottery commission as authorized by
Chapter 3770. of the Revised Code,
internet
gambling as authorized by Chapter 3771. of the Revised Code,
and
casino gaming as authorized by Chapter 3772. of the Revised Code.
(CCC)(1)
"Electronic instant bingo" means a form of bingo that
consists of an electronic or digital representation of instant bingo
in which a participant wins a prize if the participant's electronic
instant bingo ticket contains a combination of numbers or symbols
that was designated in advance as a winning combination, and to which
all of the following apply:
(a)
Each deal has a predetermined, finite number of winning and losing
tickets and a predetermined prize amount and deal structure, provided
that there may be multiple winning combinations in each deal and
multiple winning tickets.
(b)
Each electronic instant bingo ticket within a deal has a unique
serial number that is not regenerated.
(c)
Each electronic instant bingo ticket within a deal is sold for the
same price.
(d)
After a participant purchases an electronic instant bingo ticket, the
combination of numbers or symbols on the ticket is revealed to the
participant.
(e)
The reveal of numbers or symbols on the ticket may incorporate an
entertainment or bonus theme, provided that the reveal does not
include spinning reels that resemble a slot machine.
(f)
The reveal theme, if any, does not require additional consideration
or award any prize other than any predetermined prize associated with
the electronic instant bingo ticket.
(2)
"Electronic instant bingo" shall not include any of the
following:
(a)
Any game, entertainment, or bonus theme that replicates or simulates
any of the following:
(i)
The gambling games of keno, blackjack, roulette, poker, craps, other
casino-style table games;
(ii)
Horse racing;
(iii)
Gambling games offered in this state on slot machines or video
lottery terminals. As used in this division, "video lottery
terminal" has the same meaning as in section 3770.21 of the
Revised Code.
(b)
Any device operated by dropping one or more coins or tokens into a
slot and pulling a handle or pushing a button or touchpoint on a
touchscreen to activate one to three or more rotating reels marked
into horizontal segments by varying symbols, where the predetermined
prize amount depends on how and how many of the symbols line up when
the rotating reels come to a rest;
(c)
Any device that includes a coin or token slot, tray, or hopper and
the ability to dispense coins, cash, tokens, or anything of value
other than a credit ticket voucher.
(DDD)
"Electronic instant bingo system" means both of the
following:
(1)
A mechanical, electronic, digital, or video device and associated
software to which all of the following apply:
(a)
It is used by not more than one player at a time to play electronic
instant bingo on a single screen that is physically connected to the
device;
(b)
It is located on the premises of the principal place of business of a
veteran's or fraternal organization that holds a type II or type III
bingo license to conduct electronic instant bingo at that location
issued under section 2915.08 of the Revised Code.
(2)
Any associated equipment or software used to manage, monitor, or
document any aspect of electronic instant bingo.
(EEE)
"Online sweepstakes game" means a game, contest, or
promotion to which all of the following apply:
(1)
It is available on the internet, through a mobile application,
through a computer terminal, or through another similar device.
(2)
It utilizes a dual-currency system of payment that allows a player to
exchange the currency for a cash prize, cash award, or cash
equivalent, or for a chance to win a cash prize, cash award, or cash
equivalent.
(3)
It simulates a gambling game, including any of the following:
(a)
Bingo;
(b)
Wagering on horse racing;
(c)
Lottery gaming conducted under Chapter 3770. of the Revised Code,
including lottery sports gaming and video lottery terminal gaming;
(d)
Internet gambling, as defined in section 3771.01 of the Revised Code;
(e)
Casino gaming, as defined in section 3772.01 of the Revised Code;
(f)
Sports gaming, as defined in section 3775.01 of the Revised Code;
(g)
Any game of chance.
(4)
It is not a form of gambling expressly permitted by law.
Sec.
2915.02.
(A)
No person shall do any of the following:
(1)
Engage in bookmaking, or knowingly engage in conduct that facilitates
bookmaking;
(2)
Establish, promote, or operate or knowingly engage in conduct that
facilitates any game of chance conducted for profit or any scheme of
chance;
(3)
Knowingly procure, transmit, exchange, or engage in conduct that
facilitates the procurement, transmission, or exchange of information
for use in establishing odds or determining winners in connection
with bookmaking or with any game of chance conducted for profit or
any scheme of chance;
(4)
Engage in betting or in playing any scheme or game of chance as a
substantial source of income or livelihood;
(5)
Conduct, or participate in the conduct of, a sweepstakes with the use
of a sweepstakes terminal device at a sweepstakes terminal device
facility and either:
(a)
Give to another person any item described in division (VV)(1), (2),
(3), or (4) of section 2915.01 of the Revised Code as a prize for
playing or participating in a sweepstakes; or
(b)
Give to another person any merchandise prize, or a redeemable voucher
for a merchandise prize, the wholesale value of which is in excess of
ten dollars and which is awarded as a single entry for playing or
participating in a sweepstakes. Redeemable vouchers shall not be
redeemable for a merchandise prize that has a wholesale value of more
than ten dollars.
(6)
Conduct, or participate in the conduct of, a sweepstakes with the use
of a sweepstakes terminal device at a sweepstakes terminal device
facility without first obtaining a current annual "certificate
of registration" from the attorney general as required by
division (F) of this section;
(7)
Conduct,
or participate in the conduct of, a sweepstakes in the form of an
online sweepstakes game;
(8)
With
purpose to violate division (A)(1), (2), (3), (4), (5),
or
(6)
,
or (7)
of this section, acquire, possess, control, or operate any gambling
device.
(B)
For purposes of division (A)(1) of this section, a person facilitates
bookmaking if the person in any way knowingly aids an illegal
bookmaking operation, including, without limitation, placing a bet
with a person engaged in or facilitating illegal bookmaking. For
purposes of division (A)(2) of this section, a person facilitates a
game of chance conducted for profit or a scheme of chance if the
person in any way knowingly aids in the conduct or operation of any
such game or scheme, including, without limitation, playing any such
game or scheme.
(C)
This section does not prohibit conduct in connection with gambling
expressly permitted by law.
(D)
This section does not apply to any of the following:
(1)
Games of chance, if all of the following apply:
(a)
The games of chance are not craps for money or roulette for money.
(b)
The games of chance are conducted by a charitable organization that
is, and has received from the internal revenue service a
determination letter that is currently in effect, stating that the
organization is
,
exempt from federal income taxation under subsection 501(a) and
described in subsection 501(c)(3) of the Internal Revenue Code.
(c)
The games of chance are conducted at festivals of the charitable
organization that are conducted not more than a total of five days a
calendar year, and are conducted on premises owned by the charitable
organization for a period of no less than one year immediately
preceding the conducting of the games of chance, on premises leased
from a governmental unit, or on premises that are leased from a
veteran's or fraternal organization and that have been owned by the
lessor veteran's or fraternal organization for a period of no less
than one year immediately preceding the conducting of the games of
chance.
A
charitable organization shall not lease premises from a veteran's or
fraternal organization to conduct a festival described in division
(D)(1)(c) of this section if the veteran's or fraternal organization
already has leased the premises twelve times during the preceding
year to charitable organizations for that purpose. If a charitable
organization leases premises from a veteran's or fraternal
organization to conduct a festival described in division (D)(1)(c) of
this section, the charitable organization shall not pay a rental rate
for the premises per day of the festival that exceeds the rental rate
per bingo session that a charitable organization may pay under
division (B)(1) of section 2915.09 of the Revised Code when it leases
premises from another charitable organization to conduct bingo games.
(d)
All of the money or assets received from the games of chance after
deduction only of prizes paid out during the conduct of the games of
chance are used by, or given, donated, or otherwise transferred to,
any organization that is described in subsection 509(a)(1),
509(a)(2), or 509(a)(3) of the Internal Revenue Code and is either a
governmental unit or an organization that is tax exempt under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code;
(e)
The games of chance are not conducted during, or within ten hours of,
a bingo game conducted for amusement purposes only pursuant to
section 2915.12 of the Revised Code.
No
person shall receive any commission, wage, salary, reward, tip,
donation, gratuity, or other form of compensation, directly or
indirectly, for operating or assisting in the operation of any game
of chance.
(2)
Any tag fishing tournament operated under a permit issued under
section 1533.92 of the Revised Code, as "tag fishing tournament"
is defined in section 1531.01 of the Revised Code;
(3)
Bingo conducted by a charitable organization that holds a license
issued under section 2915.08 of the Revised Code.
(E)
Division (D) of this section shall not be construed to authorize the
sale, lease, or other temporary or permanent transfer of the right to
conduct games of chance, as granted by that division, by any
charitable organization that is granted that right.
(F)
Any person desiring to conduct, or participate in the conduct of, a
sweepstakes with the use of a sweepstakes terminal device at a
sweepstakes terminal device facility shall first register with the
office of the attorney general and obtain an annual certificate of
registration by providing a filing fee of two hundred dollars and all
information as required by rule adopted under division (H) of this
section. Not later than the tenth day of each month, each sweepstakes
terminal device operator shall file a sweepstakes terminal device
monthly report with the attorney general and provide a filing fee of
fifty dollars and all information required by rule adopted under
division (H) of this section. All information provided to the
attorney general under this division shall be available to law
enforcement upon request.
(G)
A person may apply to the attorney general, on a form prescribed by
the attorney general, for a certificate of compliance that the person
is not operating a sweepstakes terminal device facility. The form
shall require the person to include the address of the business
location where sweepstakes terminal devices will be used and to make
the following certifications:
(1)
That the person will not use more than two sweepstakes terminal
devices at the business location;
(2)
That the retail value of sweepstakes prizes to be awarded at the
business location using sweepstakes terminal devices during a
reporting period will be less than three per cent of the gross
revenue received at the business location during the reporting
period;
(3)
That no other form of gaming except lottery ticket sales as
authorized under Chapter 3770. of the Revised Code will be conducted
at the business location or in an adjoining area of the business
location;
(4)
That any sweepstakes terminal device at the business location will
not allow any deposit of any money, coin, or token, or the use of any
credit card, debit card, prepaid card, or any other method of similar
payment to be used, directly or indirectly, to participate in a
sweepstakes;
(5)
That notification of any prize will not take place on the same day as
a participant's sweepstakes entry; and
(6)
That the person consents to provide any other information to the
attorney general as required by rule adopted under division (H) of
this section.
The
filing fee for a certificate of compliance is two hundred fifty
dollars. The attorney general may charge up to an additional two
hundred fifty dollars for reasonable expenses resulting from any
investigation related to an application for a certificate of
compliance.
A
certificate of compliance is effective for one year. The certificate
holder may reapply for a certificate of compliance. A person issued a
certificate of compliance shall file semiannual reports with the
attorney general stating the number of sweepstakes terminal devices
at the business location and that the retail value of prizes awarded
at the business location using sweepstakes terminal devices is less
than three per cent of the gross revenue received at the business
location.
(H)
The attorney general shall adopt rules setting forth:
(1)
The required information to be submitted by persons conducting a
sweepstakes with the use of a sweepstakes terminal device at a
sweepstakes terminal device facility as described in division (F) of
this section; and
(2)
The requirements pertaining to a certificate of compliance under
division (G) of this section, which shall provide for a person to
file a consolidated application and a consolidated semiannual report
if a person has more than one business location.
The
attorney general shall issue a certificate of registration or a
certificate of compliance to all persons who have successfully
satisfied the applicable requirements of this section. The attorney
general shall post online a registry of all properly registered and
certified sweepstakes terminal device operators.
(I)
The attorney general may refuse to issue an annual certificate of
registration or certificate of compliance to any person or, if one
has been issued, the attorney general may revoke a certificate of
registration or a certificate of compliance if the applicant has
provided any information to the attorney general as part of a
registration, certification, monthly report, semiannual report, or
any other information that is materially false or misleading, or if
the applicant or any officer, partner, or owner of five per cent or
more interest in the applicant has violated any provision of this
chapter.
(J)
The attorney general may take any necessary and reasonable action to
determine a violation of this chapter, including requesting documents
and information, performing inspections of premises, or requiring the
attendance of any person at an examination under oath.
(K)
Whoever violates this section is guilty of gambling, a misdemeanor of
the first degree. If the offender previously has been convicted of
any gambling offense, gambling is a felony of the fifth degree.
Notwithstanding this division, failing to file a sweepstakes terminal
device monthly report as required by division (F) of this section or
the semiannual report required by division (G) of this section is a
misdemeanor of the first degree.
Sec.
3123.90.
(A)
As used in this section:
(1)
"Casino facility," "casino operator," and
"management company" have the meanings defined in section
3772.01 of the Revised Code.
(2)
"Sports gaming proprietor" has the meaning defined in
section 3775.01 of the Revised Code.
(3)
"Internet gambling operator" has the meaning defined in
section 3771.01 of the Revised Code.
(B)
The department of job and family services shall develop and implement
a real time data match program with each casino facility's casino
operator or management company
and
,
with
each sports gaming proprietor
,
and with each internet gaming operator
to identify obligors who are subject to a final and enforceable
determination of default made under sections 3123.01 to 3123.07 of
the Revised Code.
(C)
Upon the data match program's implementation, if a person receives a
payout of winnings at a casino facility
or
,
from
sports gaming
,
or from internet gambling
in an amount for which reporting to the internal revenue service of
the amount is required by section 6041 of the Internal Revenue Code,
as amended, the casino operator, management company,
or
sports
gaming proprietor
,
or internet gambling operator
shall refer to the data match program to determine if the person
entitled to the winnings is in default under a support order. If the
data match program indicates that the person is in default, the
casino operator, management company,
or
sports
gaming proprietor
,
or internet gambling operator
shall withhold from the person's winnings an amount sufficient to
satisfy any past due support owed by the obligor identified in the
data match up to the amount of the winnings.
(D)
Not later than fourteen days after withholding the amount, the casino
operator, management company,
or
sports
gaming proprietor
,
or internet gambling operator
shall electronically transmit any amount withheld to the department
as payment on the support obligation.
(E)
The department, in consultation with the Ohio casino control
commission, may adopt rules under Chapter 119. of the Revised Code as
are necessary for implementation of this section.
Sec.
3769.08.
(A)
Any person holding a permit to conduct a horse-racing meeting may
provide a place in the race meeting grounds or enclosure at which the
permit holder may conduct and supervise the pari-mutuel system of
wagering by patrons of legal age on the live racing programs and
simulcast racing programs conducted by the permit holder.
The
pari-mutuel method of wagering upon the live racing programs and
simulcast racing programs held at or conducted within such race
track, and at the time of such horse-racing meeting, or at other
times authorized by the state racing commission, shall not be
unlawful. No other place, except that provided and designated by the
permit holder and except as provided in section 3769.26 of the
Revised Code, nor any other method or system of betting or wagering
on live racing programs and simulcast racing programs, except the
pari-mutuel system, shall be used or permitted by the permit holder;
nor, except as provided in section 3769.089 or 3769.26 of the Revised
Code, shall the pari-mutuel system of wagering be conducted by the
permit holder on any races except the races at the race track,
grounds, or enclosure for which the person holds a permit.
Each
For
all purposes under this chapter, "the total of all moneys
wagered" on a racing program does not include the value of any
promotional gaming credit wagered by the patron. When issuance of a
promotional gaming credit requires money exchanged as a match from
the patron, the excludible portion of the promotional credit does not
include the portion of the wager purchased by the patron. As used in
this division, "promotional gaming credit" means a credit,
discount, or other similar item issued to a patron to enable the
placement of, or increase in, a wager.
Each
permit
holder may retain as a commission an amount not to exceed eighteen
per cent of the total of all moneys wagered on live racing programs
and simulcast racing programs.
The
pari-mutuel wagering authorized by this section is subject to
sections 3769.25 to 3769.28 of the Revised Code.
(B)
At the close of each racing day, each permit holder authorized to
conduct thoroughbred racing, out of the amount retained on that day
by the permit holder, shall pay in the manner prescribed under
section 3769.103 of the Revised Code, as a tax, a sum equal to the
following percentages of the total of all moneys wagered on live
racing programs on that day and shall separately compute and pay in
the manner prescribed under section 3769.103 of the Revised Code, as
a tax, a sum equal to the following percentages of the total of all
money wagered on simulcast racing programs on that day:
(1)
One per cent of the first two hundred thousand dollars wagered, or
any part of that amount;
(2)
Two per cent of the next one hundred thousand dollars wagered, or any
part of that amount;
(3)
Three per cent of the next one hundred thousand dollars wagered, or
any part of that amount;
(4)
Four per cent of all sums over four hundred thousand dollars wagered.
Except
as otherwise provided in section 3769.089 of the Revised Code, each
permit holder authorized to conduct thoroughbred racing shall use for
purse money a sum equal to fifty per cent of the pari-mutuel revenues
retained by the permit holder as a commission after payment of the
state tax. This fifty per cent payment shall be in addition to the
purse distribution from breakage specified in this section.
Subject
to division (M) of this section, from the moneys paid to the tax
commissioner by thoroughbred racing permit holders, one-half of one
per cent of the total of all moneys so wagered on a racing day shall
be paid into the Ohio fairs fund created by section 3769.082 of the
Revised Code, one and one-eighth per cent of the total of all moneys
so wagered on a racing day shall be paid into the Ohio thoroughbred
race fund created by section 3769.083 of the Revised Code, and
one-quarter of one per cent of the total of all moneys wagered on a
racing day by each permit holder shall be paid into the state racing
commission operating fund created by section 3769.03 of the Revised
Code. The required payment to the state racing commission operating
fund does not apply to county and independent fairs and agricultural
societies. The remaining moneys may be retained by the permit holder,
except as provided in this section with respect to the odd cents
redistribution. Amounts paid into the nursing home franchise permit
fee fund pursuant to this section and section 3769.26 of the Revised
Code shall be used solely for the support of the PASSPORT program as
determined in appropriations made by the general assembly. If the
PASSPORT program is abolished, the amount that would have been paid
to the nursing home franchise permit fee fund under this chapter
shall be paid to the general revenue fund of the state. As used in
this chapter, "PASSPORT program" has the same meaning as in
section 173.51 of the Revised Code.
The
total amount paid to the Ohio thoroughbred race fund under this
section and division (A) of section 3769.087 of the Revised Code
shall not exceed by more than six per cent the total amount paid to
this fund under this section and division (A) of that section during
the immediately preceding calendar year.
Each
year, the total amount calculated for payment into the Ohio fairs
fund under this division, division (C) of this section, and division
(A) of section 3769.087 of the Revised Code shall be an amount
calculated using the percentages specified in this division, division
(C) of this section, and division (A) of section 3769.087 of the
Revised Code.
A
permit holder may contract with a thoroughbred horsemen's
organization for the organization to act as a representative of all
thoroughbred owners and trainers participating in a horse-racing
meeting conducted by the permit holder. A "thoroughbred
horsemen's organization" is any corporation or association that
represents, through membership or otherwise, more than one-half of
the aggregate of all thoroughbred owners and trainers who were
licensed and actively participated in racing within this state during
the preceding calendar year. Except as otherwise provided in this
paragraph, any moneys received by a thoroughbred horsemen's
organization shall be used exclusively for the benefit of
thoroughbred owners and trainers racing in this state through the
administrative purposes of the organization, benevolent activities on
behalf of the horsemen, promotion of the horsemen's rights and
interests, and promotion of equine research. A thoroughbred
horsemen's organization may expend not more than an aggregate of five
per cent of its annual gross receipts, or a larger amount as approved
by the organization, for dues, assessments, and other payments to all
other local, national, or international organizations having as their
primary purposes the promotion of thoroughbred horse racing,
thoroughbred horsemen's rights, and equine research.
(C)
Except as otherwise provided in division (B) of this section, at the
close of each racing day, each permit holder authorized to conduct
harness or quarter horse racing, out of the amount retained that day
by the permit holder, shall pay in the manner prescribed under
section 3769.103 of the Revised Code, as a tax, a sum equal to the
following percentages of the total of all moneys wagered on live
racing programs and shall separately compute and pay in the manner
prescribed under section 3769.103 of the Revised Code, as a tax, a
sum equal to the following percentages of the total of all money
wagered on simulcast racing programs on that day:
(1)
One per cent of the first two hundred thousand dollars wagered, or
any part of that amount;
(2)
Two per cent of the next one hundred thousand dollars wagered, or any
part of that amount;
(3)
Three per cent of the next one hundred thousand dollars wagered, or
any part of that amount;
(4)
Four per cent of all sums over four hundred thousand dollars wagered.
Except
as otherwise provided in division (B) and subject to division (M) of
this section, from the moneys paid to the tax commissioner by permit
holders authorized to conduct harness or quarter horse racing,
one-half of one per cent of all moneys wagered on that racing day
shall be paid into the Ohio fairs fund; from the moneys paid to the
tax commissioner by permit holders authorized to conduct harness
racing, five-eighths of one per cent of all moneys wagered on that
racing day shall be paid into the Ohio standardbred development fund;
and from the moneys paid to the tax commissioner by permit holders
authorized to conduct quarter horse racing, five-eighths of one per
cent of all moneys wagered on that racing day shall be paid into the
Ohio thoroughbred race fund to support quarter horse development and
purses.
(D)
In addition, subject to division (M) of this section, beginning on
January 1, 1996, from the money paid to the tax commissioner as a tax
under this section and division (A) of section 3769.087 of the
Revised Code by harness horse permit holders, one-half of one per
cent of the amount wagered on a racing day shall be paid into the
Ohio standardbred development fund. Beginning January 1, 1998, the
payment to the Ohio standardbred development fund required under this
division does not apply to county agricultural societies or
independent agricultural societies.
The
total amount paid to the Ohio standardbred development fund under
this division, division (C) of this section, and division (A) of
section 3769.087 of the Revised Code and the total amount paid to the
Ohio thoroughbred race fund to support quarter horse development and
purses under this division and division (A) of that section shall not
exceed by more than six per cent the total amount paid into the fund
under this division, division (C) of this section, and division (A)
of section 3769.087 of the Revised Code in the immediately preceding
calendar year.
(E)
Subject to division (M) of this section, from the money paid as a tax
under this chapter by harness and quarter horse permit holders,
one-quarter of one per cent of the total of all moneys wagered on a
racing day by each permit holder shall be paid into the state racing
commission operating fund created by section 3769.03 of the Revised
Code. This division does not apply to county and independent fairs
and agricultural societies.
(F)
Except as otherwise provided in section 3769.089 of the Revised Code,
each permit holder authorized to conduct harness racing shall pay to
the harness horsemen's purse pool a sum equal to fifty per cent of
the pari-mutuel revenues retained by the permit holder as a
commission after payment of the state tax. This fifty per cent
payment is to be in addition to the purse distribution from breakage
specified in this section.
(G)
In addition, each permit holder authorized to conduct harness racing
shall be allowed to retain the odd cents of all redistribution to be
made on all mutual contributions exceeding a sum equal to the next
lowest multiple of ten.
Forty
per cent of that portion of that total sum of such odd cents shall be
used by the permit holder for purse money for Ohio sired, bred, and
owned colts, for purse money for Ohio bred horses, and for increased
purse money for horse races. Upon the formation of the corporation
described in section 3769.21 of the Revised Code to establish a
harness horsemen's health and retirement fund, twenty-five per cent
of that portion of that total sum of odd cents shall be paid at the
close of each racing day by the permit holder to that corporation to
establish and fund the health and retirement fund. Until that
corporation is formed, that twenty-five per cent shall be paid at the
close of each racing day by the permit holder to the tax commissioner
or the tax commissioner's agent in the county seat of the county in
which the permit holder operates race meetings. The remaining
thirty-five per cent of that portion of that total sum of odd cents
shall be retained by the permit holder.
(H)
In addition, each permit holder authorized to conduct thoroughbred
racing shall be allowed to retain the odd cents of all redistribution
to be made on all mutuel contributions exceeding a sum equal to the
next lowest multiple of ten. Twenty per cent of that portion of that
total sum of such odd cents shall be used by the permit holder for
increased purse money for horse races. Upon the formation of the
corporation described in section 3769.21 of the Revised Code to
establish a thoroughbred horsemen's health and retirement fund,
forty-five per cent of that portion of that total sum of odd cents
shall be paid at the close of each racing day by the permit holder to
that corporation to establish and fund the health and retirement
fund. Until that corporation is formed, that forty-five per cent
shall be paid by the permit holder to the tax commissioner or the tax
commissioner's agent in the county seat of the county in which the
permit holder operates race meetings, at the close of each racing
day. The remaining thirty-five per cent of that portion of that total
sum of odd cents shall be retained by the permit holder.
(I)
In addition, each permit holder authorized to conduct quarter horse
racing shall be allowed to retain the odd cents of all redistribution
to be made on all mutuel contributions exceeding a sum equal to the
next lowest multiple of ten, subject to a tax of twenty-five per cent
on that portion of the total sum of such odd cents that is in excess
of two thousand dollars during a calendar year, which tax shall be
paid at the close of each racing day by the permit holder to the tax
commissioner or the tax commissioner's agent in the county seat of
the county within which the permit holder operates race meetings.
Forty per cent of that portion of that total sum of such odd cents
shall be used by the permit holder for increased purse money for
horse races. The remaining thirty-five per cent of that portion of
that total sum of odd cents shall be retained by the permit holder.
(J)(1)
To encourage the improvement of racing facilities for the benefit of
the public, breeders, and horse owners, and to increase the revenue
to the state from the increase in pari-mutuel wagering resulting from
those improvements, the taxes paid by a permit holder to the state as
provided for in this chapter shall be reduced by three-fourths of one
per cent of the total amount wagered for those permit holders who
make capital improvements to existing race tracks or construct new
race tracks. The percentage of the reduction that may be taken each
racing day shall equal seventy-five per cent of the taxes levied
under divisions (B) and (C) of this section and section 3769.087 of
the Revised Code, and division (F)(2) of section 3769.26 of the
Revised Code, as applicable, divided by the calculated amount each
fund should receive under divisions (B) and (C) of this section and
section 3769.087 of the Revised Code, and division (F)(2) of section
3769.26 of the Revised Code and the reduction provided for in this
division. If the resulting percentage is less than one, that
percentage shall be multiplied by the amount of the reduction
provided for in this division. Otherwise, the permit holder shall
receive the full reduction provided for in this division. The amount
of the allowable reduction not received shall be carried forward and
applied against future tax liability. After any reductions expire,
any reduction carried forward shall be treated as a reduction as
provided for in this division.
If
more than one permit holder is authorized to conduct racing at the
facility that is being built or improved, the cost of the new race
track or capital improvement shall be allocated between or among all
the permit holders in the ratio that the permit holders' number of
racing days bears to the total number of racing days conducted at the
facility.
A
reduction for a new race track or a capital improvement shall start
from the day racing is first conducted following the date actual
construction of the new race track or each capital improvement is
completed and the construction cost has been approved by the racing
commission, unless otherwise provided in this section. A reduction
for a new race track or a capital improvement shall continue for a
period of twenty-five years for new race tracks and for fifteen years
for capital improvements if the construction of the capital
improvement or new race track commenced prior to March 29, 1988, and
for a period of ten years for new race tracks or capital improvements
if the construction of the capital improvement or new race track
commenced on or after March 29, 1988, but before June 6, 2001, or
until the total tax reduction reaches seventy per cent of the
approved cost of the new race track or capital improvement, as
allocated to each permit holder, whichever occurs first. A reduction
for a new race track or a capital improvement approved after June 6,
2001, shall continue until the total tax reduction reaches one
hundred per cent of the approved cost of the new race track or
capital improvement, as allocated to each permit holder.
A
reduction granted for a new race track or a capital improvement, the
application for which was approved by the racing commission after
March 29, 1988, but before June 6, 2001, shall not commence nor shall
the ten-year period begin to run until all prior tax reductions with
respect to the same race track have ended. The total tax reduction
because of capital improvements shall not during any one year exceed
for all permit holders using any one track three-fourths of one per
cent of the total amount wagered, regardless of the number of capital
improvements made. Several capital improvements to a race track may
be consolidated in an application if the racing commission approved
the application prior to March 29, 1988. No permit holder may receive
a tax reduction for a capital improvement approved by the racing
commission on or after March 29, 1988, at a race track until all tax
reductions have ended for all prior capital improvements approved by
the racing commission under this section or section 3769.20 of the
Revised Code at that race track. If there are two or more permit
holders operating meetings at the same track, they may consolidate
their applications. The racing commission shall notify the tax
commissioner when the reduction of tax begins and when it ends.
Each
fiscal year the racing commission shall submit a report to the tax
commissioner, the office of budget and management, and the
legislative service commission. The report shall identify each
capital improvement project undertaken under this division and in
progress at each race track, indicate the total cost of each project,
state the tax reduction that resulted from each project during the
immediately preceding fiscal year, estimate the tax reduction that
will result from each project during the current fiscal year, state
the total tax reduction that resulted from all such projects at all
race tracks during the immediately preceding fiscal year, and
estimate the total tax reduction that will result from all such
projects at all race tracks during the current fiscal year.
(2)
In order to qualify for the reduction in tax, a permit holder shall
apply to the racing commission in such form as the commission may
require and shall provide full details of the new race track or
capital improvement, including a schedule for its construction and
completion, and set forth the costs and expenses incurred in
connection with it. The racing commission shall not approve an
application unless the permit holder shows that a contract for the
new race track or capital improvement has been let under an
unrestricted competitive bidding procedure, unless the contract is
exempted by the controlling board because of its unusual nature. In
determining whether to approve an application, the racing commission
shall consider whether the new race track or capital improvement will
promote the safety, convenience, and comfort of the racing public and
horse owners and generally tend towards the improvement of racing in
this state.
(3)
If a new race track or capital improvement is approved by the racing
commission and construction has started, the tax reduction may be
authorized by the commission upon presentation of copies of paid
bills in excess of one hundred thousand dollars or ten per cent of
the approved cost, whichever is greater. After the initial
authorization, the permit holder shall present copies of paid bills.
If the permit holder is in substantial compliance with the schedule
for construction and completion of the new race track or capital
improvement, the racing commission may authorize the continuation of
the tax reduction upon the presentation of the additional paid bills.
The total amount of the tax reduction authorized shall not exceed the
percentage of the approved cost of the new race track or capital
improvement specified in division (J)(1) of this section. The racing
commission may terminate any tax reduction immediately if a permit
holder fails to complete the new race track or capital improvement,
or to substantially comply with the schedule for construction and
completion of the new race track or capital improvement. If a permit
holder fails to complete a new race track or capital improvement, the
racing commission shall order the permit holder to repay to the state
the total amount of tax reduced. The normal tax paid by the permit
holder shall be increased by three-fourths of one per cent of the
total amount wagered until the total amount of the additional tax
collected equals the total amount of tax reduced.
(4)
As used in this section:
(a)
"Capital improvement" means an addition, replacement, or
remodeling of a structural unit of a race track facility costing at
least one hundred thousand dollars, including, but not limited to,
the construction of barns used exclusively for the race track
facility, backstretch facilities for horsemen, paddock facilities,
new pari-mutuel and totalizator equipment and appurtenances to that
equipment purchased by the track, new access roads, new parking
areas, the complete reconstruction, reshaping, and leveling of the
racing surface and appurtenances, the installation of permanent new
heating or air conditioning, roof replacement or restoration,
installations of a permanent nature forming a part of the track
structure, and construction of buildings that are located on a permit
holder's premises. "Capital improvement" does not include
the cost of replacement of equipment that is not permanently
installed, ordinary repairs, painting, and maintenance required to
keep a race track facility in ordinary operating condition.
(b)
"New race track" includes the reconstruction of a race
track damaged by fire or other cause that has been declared by the
racing commission, as a result of the damage, to be an inadequate
facility for the safe operation of horse racing.
(c)
"Approved cost" includes all debt service and interest
costs that are associated with a capital improvement or new race
track and that the racing commission approves for a tax reduction
under division (J) of this section.
(5)
The racing commission shall not approve an application for a tax
reduction under this section if it has reasonable cause to believe
that the actions or negligence of the permit holder substantially
contributed to the damage suffered by the track due to fire or other
cause. The racing commission shall obtain any data or information
available from a fire marshal, law enforcement official, or insurance
company concerning any fire or other damage suffered by a track,
prior to approving an application for a tax reduction.
(6)
The approved cost to which a tax reduction applies shall be
determined by generally accepted accounting principles and verified
by an audit of the permit holder's records upon completion of the
project by the racing commission, or by an independent certified
public accountant selected by the permit holder and approved by the
commission.
(K)
No other license or excise tax or fee, except as provided in sections
3769.01 to 3769.14 of the Revised Code, shall be assessed or
collected from such licensee by any county, township, district,
municipal corporation, or other body having power to assess or
collect a tax or fee. That portion of the tax paid under this section
by permit holders for racing conducted at and during the course of an
agricultural exposition or fair, and that portion of the tax that
would have been paid by eligible permit holders into the nursing home
franchise permit fee fund as a result of racing conducted at and
during the course of an agricultural exposition or fair, shall be
deposited into the state treasury to the credit of the horse racing
tax fund, which is hereby created for the use of the agricultural
societies of the several counties in which the taxes originate. The
state racing commission shall determine eligible permit holders for
purposes of the preceding sentence, taking into account the breed of
horse, the racing dates, the geographic proximity to the fair, and
the best interests of Ohio racing. On the first day of any month on
which there is money in the fund, the tax commissioner shall provide
for payment to the treasurer of each agricultural society the amount
of the taxes collected under this section upon racing conducted at
and during the course of any exposition or fair conducted by the
society.
(L)
From the tax paid under this section by harness track permit holders,
the tax commissioner shall pay into the Ohio thoroughbred race fund a
sum equal to a percentage of the amount wagered upon which the tax is
paid. The percentage shall be determined by the tax commissioner and
shall be rounded to the nearest one-hundredth. The percentage shall
be such that, when multiplied by the amount wagered upon which tax
was paid by the harness track permit holders in the most recent year
for which final figures are available, it results in a sum that
substantially equals the same amount of tax paid by the tax
commissioner during that year into the Ohio fairs fund from taxes
paid by thoroughbred permit holders. This division does not apply to
county and independent fairs and agricultural societies.
(M)
Twenty-five per cent of the taxes levied on thoroughbred racing
permit holders, harness racing permit holders, and quarter horse
racing permit holders under this section, division (A) of section
3769.087 of the Revised Code, and division (F)(2) of section 3769.26
of the Revised Code shall be paid into the nursing home franchise
permit fee fund. The tax commissioner shall pay any money remaining,
after the payment into the nursing home franchise permit fee fund and
the reductions provided for in division (J) of this section and in
section 3769.20 of the Revised Code, into the Ohio fairs fund, Ohio
thoroughbred race fund, Ohio standardbred development fund, and state
racing commission operating fund as prescribed in this section and
division (A) of section 3769.087 of the Revised Code. The tax
commissioner shall thereafter use and apply the balance of the money
paid as a tax by any permit holder to cover any shortage in the
accounts of such funds resulting from an insufficient payment as a
tax by any other permit holder. Subject to section 3769.101 of the
Revised Code, the moneys received by the tax commissioner shall be
deposited monthly and paid by the tax commissioner into the funds to
cover the total aggregate amount due from all permit holders to the
funds, as calculated under this section and division (A) of section
3769.087 of the Revised Code, as applicable. If, after the payment
into the nursing home franchise permit fee fund, sufficient funds are
not available from the tax deposited by the tax commissioner to pay
the required amounts into the Ohio fairs fund, Ohio standardbred
development fund, Ohio thoroughbred race fund, and the state racing
commission operating fund, the tax commissioner shall prorate on a
proportional basis the amount paid to each of the funds. Any shortage
to the funds as a result of a proration shall be applied against
future deposits for the same calendar year when funds are available.
After this application, the tax commissioner shall pay any remaining
money paid as a tax by all permit holders into the nursing home
franchise permit fee fund. This division does not apply to permit
holders conducting racing at the course of an agricultural exposition
or fair as described in division (K) of this section.
Sec.
3771.01.
As
used in this chapter:
(A)
"Applicant" means a person that applies to the Ohio casino
control commission for a license under this chapter.
(B)
"Casino gaming" and "casino operator" have the
same meanings as in section 3772.01 of the Revised Code.
(C)
"Commission" means the Ohio casino control commission.
(D)
"Internet gambling" means a form of gaming in which a wager
on an internet gambling game is made and accepted through an internet
gambling system. "Internet gambling" does not include any
of the following:
(1)
Wagering on horse racing;
(2)
Lottery games authorized under Chapter 3770. of the Revised Code,
including video lottery terminals and lottery sports gaming;
(3)
Casino gaming authorized under division (C) of Section 6 of Article
XV, Ohio Constitution and Chapter 3772. of the Revised Code;
(4)
Fantasy contests authorized under Chapter 3774. of the Revised Code;
(5)
Sports gaming authorized under Chapter 3775. of the Revised Code.
(E)
"Internet gambling equipment" means any of the following
that directly relate to or affect, or are used or consumed in, the
operation of internet gambling:
(1)
Any mechanical, electronic, or other device, mechanism, or equipment;
(2)
Any software, application, components, or other goods;
(3)
Anything to be installed or used on a patron's personal computer or
mobile device.
(F)
"Internet gambling game" means a game, event, happening, or
other matter used to display the outcome of a wager placed in the
course of internet gambling, as authorized by the commission by rule.
"Internet gambling game" includes both of the following:
(1)
A game involving a virtual representation of spinning reels or
wheels, with the outcome of a wager placed on the game being randomly
generated by a theoretical random-number-generating computer program;
(2)
A game involving a virtual representation of cards, dice, tiles, or
other physical equipment that provides a random outcome, with the
outcome of the game being determined by that equipment or determined
by a theoretical random-number-generating computer program.
(G)
"Internet gambling license" means an internet gambling
operator, internet gambling management company, internet gambling
supplier, or internet gambling occupational license issued by the
Ohio casino control commission under this chapter.
(H)
"Internet gambling licensee" means a person who holds a
valid internet gambling license.
(I)
"Internet gambling management company" means a person that
contracts with an internet gambling operator under section 3776.05 of
the Revised Code to operate internet gambling on behalf of the
internet gambling operator and that is licensed by the Ohio casino
control commission as an internet gambling management company under
that section.
(J)
"Internet gambling operator" means a casino operator or
permit holder that holds a valid internet gambling operator license.
(K)
"Internet gambling platform" means an online gaming web
site or mobile application that is operated by an internet gambling
operator or internet gambling management company to operate or
conduct internet gambling in this state.
(L)
"Internet gambling receipts" has the same meaning as in
section 5753.01 of the Revised Code.
(M)
"Internet gambling supplier" means a person or entity that
provides internet gambling equipment or related services to an
internet gambling operator or internet gambling management company.
(N)
"Internet gambling system" means all of the following:
(1)
The combination of internet gambling equipment an internet gambling
operator or internet gambling management company uses to allow a
patron to place, review, or modify a wager, to pay out a winning
wager, and to review, manage, and report information related to user
accounts, wager placement, or wager outcomes;
(2)
Any other internet gambling equipment the commission determines is
related to the combination of internet gambling equipment described
in division (N)(1) of this section.
(O)
"Internet gambling voluntary exclusion program" means the
program described in division (B)(11) of section 3771.02 of the
Revised Code.
(P)
"Permit holder" means a person who has been issued a valid
permit to conduct horse racing at which pari-mutuel wagering is
conducted under Chapter 3769. of the Revised Code, other than a
person who holds a permit issued under that chapter only for a racing
meeting at a fair.
(Q)
"Promotional credit" means a credit, discount, or other
similar item issued to a patron by an internet gambling operator or
internet gambling management company that can be used only for the
following purposes:
(1)
To enable the placement of, or increase in, a wager on a casino game
at a casino facility operated by the internet gambling operator or
its affiliate;
(2)
To enable the placement of, or increase in, a wager on a horse race
or a video lottery terminal at a track operated by the internet
gambling operator or its affiliate;
(3)
As credit toward the cost of accommodations, food and beverages,
entertainment, or other things of value at a casino facility or track
operated by the internet gambling operator or its affiliate.
(R)
"Track" means any place, track, or enclosure where a permit
holder conducts live horse racing for profit at a race meeting.
(S)
"Video lottery terminal" has the same meaning as in section
3770.21 of the Revised Code.
(T)
"Wager" or "bet" means to risk a sum or money or
thing of value on an uncertain occurrence.
Sec.
3771.02.
(A)
The Ohio casino control commission shall have jurisdiction over all
persons conducting or participating in the conduct of internet
gambling authorized by this chapter, including the authority to
license, regulate, investigate, and penalize those persons in a
manner that is consistent with the commission's authority with
respect to casino gaming. In all cases in which this chapter requires
or allows the commission to adopt rules concerning internet gambling,
the commission shall adopt those rules under Chapter 119. of the
Revised Code.
(B)
The commission shall adopt rules that include the following:
(1)
Procedures for internet gambling operators to accept wagers on
internet games;
(2)
The types of internet games to be offered by internet gambling
operators;
(3)
The manner in which internet gambling operators are to offer approved
internet gambling games;
(4)
The type of records internet gambling operators are to keep;
(5)
The system to be used to place a wager with an internet gambling
operator;
(6)
The manner in which internet gambling operators must verify that
their patrons are at least twenty-one years of age;
(7)
Protections for a player placing a wager with an internet gambling
operator;
(8)
Measures to promote responsible internet gambling;
(9)
Penalties and fines for violating this section or rules adopted under
this section;
(10)
Restrictions to ensure that internet gambling operators'
advertisements for internet gambling meet all of the following
requirements:
(a)
They clearly convey the conditions under which internet gambling is
being offered, including information about the cost to participate
and the nature of any promotions and information to assist patrons in
understanding the odds of winning;
(b)
They disclose the identity of the internet gambling operator and, if
applicable, the internet gambling management company;
(c)
They do not target individuals under twenty-one years of age, other
individuals who are ineligible to participate in internet gambling,
problem gamblers, or other vulnerable individuals;
(d)
They include messages designed to prevent problem gambling and
provide information about how to access resources related to problem
gambling;
(e)
They are not false, misleading, or deceptive to a reasonable
consumer.
(11)
An internet gambling voluntary exclusion program, which shall allow a
person to voluntarily exclude the person's self from participating in
internet gambling conducted under this chapter by placing the
person's name on a voluntary exclusion list and following procedures
set forth by the commission.
(a)
All of the following apply to the internet gambling voluntary
exclusion program:
(i)
Except as provided by the commission by rule, a person who
participates in the program shall agree to refrain from participating
in internet gambling conducted under this chapter.
(ii)
The name of a person participating in the program shall be included
on a list of persons excluded from participating in internet gambling
conducted under this chapter.
(iii)
Except as provided by the commission by rule, no person who
participates in the program shall petition the commission for
permission to participate in internet gambling conducted under this
chapter.
(iv)
The list of persons participating in the program and the personal
information of those persons shall be confidential and shall only be
disseminated by the commission to an internet gambling operator and
its agents and employees for purposes of enforcement, and to other
entities, upon request of the participant and agreement by the
commission.
(v)
An internet gambling operator shall make all reasonable attempts as
determined by the commission to cease all direct marketing efforts to
a person participating in the program.
(vi)
An internet gambling operator shall not cash the check of a person
participating in the program or extend credit to the person in any
manner. However, the program shall not prohibit an internet gambling
operator from seeking the payment of a debt accrued by a person
before participating in the program.
(vii)
Any and all locations at which a person may register as a participant
in the program shall be published.
(b)
The commission shall determine, by rule, whether a participant in the
internet gambling voluntary exclusion program also automatically
becomes a participant in the voluntary exclusion program established
under Chapter 3772. of the Revised Code.
(12)
Any other procedure or thing the commission determines necessary to
ensure the integrity of internet gambling regulated by the
commission.
(C)
The commission shall adopt rules establishing minimum internal
control standards for the administration of internet gambling
platforms, internet gambling systems, internet gambling equipment,
and other systems or items used by internet gambling operators to
conduct internet gambling, and the maintenance of internet gambling
operators' financial records and other required records. The
commission may approve minimum internal control standards proposed by
internet gambling operators.
(D)(1)
The commission shall approve all internet gambling equipment and each
form, variation, or composite of internet gambling to be used by
internet gambling operators.
(2)(a)
Before approving a piece of internet gambling equipment or a form,
variation, or composite of internet gambling, the commission shall
require it to undergo scientific testing or technical evaluation, as
the commission determines appropriate. The commission may require the
testing or evaluation to be conducted at the expense of the internet
gambling supplier or internet gambling operator, as applicable, by an
independent testing laboratory certified by the commission.
(b)
The commission may certify an independent testing laboratory to test
and evaluate internet gambling equipment and forms, variations, or
composites of internet gambling if both of the following apply:
(i)
The laboratory is competent and qualified to scientifically test and
technically evaluate internet gambling equipment and forms,
variations, or composites of internet gambling for compliance with
this chapter and with the rules of the commission and otherwise to
perform the functions assigned to the laboratory by the commission.
(ii)
The laboratory is not owned or controlled by, is not affiliated with,
and does not have any interest in an internet gambling operator,
internet gambling management company, or internet gambling supplier.
(c)
The commission shall adopt rules prescribing the certification
standards, fees, and duties that apply to a certified independent
testing laboratory under division (E) of this section.
(3)
The commission shall adopt rules requiring internet gambling
licensees to use only approved internet gambling equipment acquired
from a licensed internet gambling supplier and to use only approved
forms, variations, or composites of internet gambling.
(E)(1)
The commission shall determine a person's eligibility to hold or
renew an internet gambling license under this chapter, shall issue
all internet gambling licenses, and shall maintain a record of all
internet gambling licenses issued under this chapter.
(2)
The commission shall conduct a complete investigation of each
applicant for an internet gambling license to determine whether the
applicant meets the requirements of this chapter and of the
commission's rules each time the applicant applies for an initial or
renewed internet gambling license. The commission may initiate an
additional licensing investigation or adjudication or reopen an
existing licensing investigation or adjudication at any time.
(F)(1)
Except as otherwise provided in divisions (F)(2) and (3) of this
section, the commission shall levy and collect all fees and
surcharges imposed under this chapter and rules adopted under this
chapter and shall deposit all money collected in the casino control
commission fund created under section 5753.03 of the Revised Code.
(2)
The commission shall deposit the license fees described in division
(D) of section 3771.04 of the Revised Code in the general revenue
fund.
(3)
The commission shall levy and collect fines for noncriminal
violations of the provisions of this chapter and of rules adopted
under this chapter and shall deposit all such fines in the general
revenue fund.
(G)(1)
The commission, in an adjudication conducted under Chapter 119. of
the Revised Code and in accordance with section 3772.04 of the
Revised Code, may do any of the following:
(a)
Penalize or fine any internet gambling licensee, applicant for an
internet gambling license, or other person who is subject to the
commission's jurisdiction under this chapter;
(b)
Limit, condition, restrict, suspend, revoke, deny, or refuse to renew
any internet gambling license.
(2)
The executive director of the commission may issue an emergency order
with respect to internet gambling under division (G) of section
3772.04 of the Revised Code.
(H)(1)
The commission shall monitor all internet gambling conducted in this
state by internet gambling operators, or shall contract with an
independent integrity monitoring provider for that purpose, in order
to identify any unusual betting activities or patterns that may
indicate a need for further investigation. The commission shall
require each internet gambling operator to participate in the
monitoring system as part of the minimum internal control standards
described in division (C) of this section.
(2)
The information in the monitoring system described in division (H)(1)
of this section is not a public record. The commission may disclose
the information in the monitoring system only as necessary for
investigative or law enforcement purposes or pursuant to a court
order.
(I)(1)
The executive director of the commission promptly shall report to the
commission any facts or circumstances related to the operation of an
internet gambling licensee that constitute a violation of state or
federal law and immediately report any suspicious wagering to the
appropriate state or federal authorities.
(2)
The commission shall cooperate with any investigation conducted by a
law enforcement agency, including by providing, or facilitating the
provision of, wagering information and audio or video files related
to persons placing wagers.
(3)
A sheriff, chief of police, or prosecuting attorney shall furnish to
the commission, on forms prescribed by the commission, any
information obtained concerning any apparent violation of this
chapter or rules adopted under this chapter. If the information is
considered a confidential law enforcement investigatory record under
section 149.43 of the Revised Code, the commission shall not disclose
the information to the public.
(J)(1)
The attorney general has a civil cause of action to restrain any
violation of this chapter or of rules adopted under this chapter.
Upon the request of the commission or its executive director, the
attorney general shall commence and prosecute such an action to
completion. The court shall give priority to such an action over all
other civil actions.
(2)
An action brought under division (J)(1) of this section does not
preclude an administrative or criminal proceeding on the same facts.
(3)
The attorney general may enter into an agreement with a state or
local law enforcement agency to carry out the duties described in
division (J)(1) of this section.
(K)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
by the commission in accordance with this chapter during the period
beginning on the effective date of this section and ending twelve
months after that date is not subject to sections 121.95 to 121.953
of the Revised Code.
Sec.
3771.03.
(A)
No person shall operate, conduct, or assist in operating or
conducting internet gambling in this state without first obtaining an
internet gambling license from the Ohio casino control commission. An
internet gambling license is not transferable.
(B)
Each person applying for an initial or renewed internet gambling
license issued under this section and each person who has control of
the applicant, as described in division (C) of this section, shall
submit two complete sets of fingerprints to the commission for the
purpose of conducting a criminal records check, including obtaining
any available information from the federal bureau of investigation.
The person shall provide the fingerprints using a method the
superintendent of the bureau of criminal identification and
investigation prescribes pursuant to division (C)(2) of section
109.572 of the Revised Code and fill out the form the superintendent
of the bureau of criminal identification and investigation prescribes
pursuant to division (C)(1) of section 109.572 of the Revised Code.
Upon receiving an application under this section, the executive
director of the Ohio casino control commission shall request the
superintendent of the bureau of criminal identification and
investigation, or a vendor approved by the bureau, to conduct a
criminal records check based on the fingerprint impressions in
accordance with division (A)(20) of section 109.572 of the Revised
Code. Any fee required under division (C)(3) of section 109.572 of
the Revised Code shall be paid by the applicant, or in the case of an
occupational license, by the applicant's employer. Any applicant
convicted of any disqualifying offense, as defined in section 3772.07
of the Revised Code, shall not be issued a license.
(C)
The Ohio casino control commission shall not grant an internet
gambling operator, internet gambling management company, or internet
gambling supplier license until it has determined that each person
who has control of the applicant has met the qualifications for
licensure established in this chapter and in rules adopted by the
commission. All of the following persons are considered to have
control of an applicant:
(1)
Each person associated with a corporate applicant, including any
holding company, parent company, or subsidiary company of the
applicant, that has the ability to control the activities of the
corporate applicant or elect a majority of the board of directors of
that corporation, other than any bank or other licensed lending
institution that holds a mortgage or other lien acquired in the
ordinary course of business. As used in this division, "holding
company" means any corporation, firm, partnership, limited
partnership, limited liability company, trust, or other form of
business organization not a natural person which directly or
indirectly does any of the following:
(a)
Has the power or right to control the applicant;
(b)
Holds an ownership interest of five per cent or more, as determined
by the commission, in the applicant;
(c)
Holds voting rights with the power to vote five per cent or more of
the outstanding voting rights of the applicant.
(2)
Each person associated with a noncorporate applicant that directly or
indirectly holds a beneficial or proprietary interest in the
applicant's business operation or that the commission otherwise
determines has the ability to control the applicant;
(3)
Key personnel of an applicant, including any executive, employee, or
agency, having the power to exercise significant influence over
decisions concerning any part of the applicant's business operation.
(D)
An internet gambling licensee shall display its license conspicuously
in its place of business or have the license available for inspection
by any agent of the Ohio casino control commission or any law
enforcement agency.
(E)
An internet gambling licensee shall give the Ohio casino control
commission written notice within ten days of any material change to
any information provided in the licensee's application for a license
or renewal. The commission shall specify by rule which changes to
that information it considers to be material.
Sec.
3771.04.
(A)(1)
The Ohio casino control commission may issue an internet gambling
operator license only to a casino operator or a permit holder.
Subject to division (A) of section 3771.05 of the Revised Code, an
internet gambling operator license authorizes the licensee to operate
one internet gambling platform.
(2)
If two or more persons who are eligible for a license under division
(A)(1) of this section are controlled by the same person, as
determined under division (C) of section 3771.03 of the Revised Code,
only one of those eligible persons may hold an internet gambling
operator license at any one time.
(B)
The commission shall adopt by rule a procedure allowing the
commission to revoke an internet gambling operator license if the
licensee does not offer internet gambling to patrons under the
license for a continuous period of one year or more.
(C)
An applicant for an initial or renewed internet gambling operator
license shall do all of the following:
(1)
Submit a written application on a form furnished by the commission;
(2)
Pay the fee required under division (C)(3) of section 109.572 of the
Revised Code, along with a nonrefundable application fee in an amount
prescribed by the commission by rule;
(3)
Submit an audit of the applicant's financial transactions and the
condition of the applicant's total operations for the previous fiscal
year prepared by a certified public accountant in accordance with
generally accepted accounting principles and state and federal laws;
(4)
Satisfy any other requirements for licensure under this chapter and
rules adopted under this chapter.
(D)
An internet gambling operator shall pay the commission a
nonrefundable license fee of fifty million dollars upon issuance of
an initial license and shall pay a nonrefundable license fee of ten
million dollars upon being issued a renewed license.
(E)
An internet gambling operator license is valid for a term of five
years, provided that when the commission issues an initial internet
gambling operator license to a person who also holds a current and
valid sports gaming proprietor license issued under Chapter 3775. of
the Revised Code, the term of the initial internet gambling operator
license shall be extended to expire on the date that is five years
after the person's sports gaming proprietor license expires or, if
the person holds more than one sports gaming proprietor license, the
date that is five years after the latest expiration date of any of
those licenses.
Subject
to division (F)(2) of this section, upon the expiration of an
internet gambling operator license, an internet gambling operator may
apply to renew the license in the same manner as for an initial
license, unless the license is suspended or revoked or the commission
determines that the internet gambling operator is not in compliance
with this chapter and the rules adopted under this chapter.
(2)
An applicant for a renewed internet gambling operator license who
currently holds a sports gaming proprietor license issued under
Chapter 3775. of the Revised Code is not required to take action to
satisfy any additional requirement for the renewed internet gambling
operator license that is substantially similar to any requirement the
applicant previously has satisfied in order to obtain or renew the
applicant's sports gaming proprietor license.
Sec.
3771.05.
(A)
An internet gambling operator may contract with not more than one
internet gambling management company to offer internet gambling on
the internet gambling operator's behalf. If an internet gambling
operator contracts with an internet gambling management company under
this section, the internet gambling operator shall not operate any
other internet gambling platform.
(B)
The commission shall adopt by rule a procedure allowing the
commission to revoke an internet gambling management company's
license if the licensee does not actively offer internet gambling
under the license for a continuous period of one year or more.
(C)
An internet gambling management company may offer internet gambling
only in accordance with this chapter and with the rules adopted by
the Ohio casino control commission under this chapter.
(D)
In order to permit an internet gambling management company to offer
internet gambling on behalf of an internet gambling operator, the
internet gambling operator and internet gambling management company
shall enter into a written contract that has been approved by the
commission. If the internet gambling operator and internet gambling
management company wish to make a material change to the contract,
the internet gambling operator shall first submit the change to the
commission for its approval or rejection. The internet gambling
operator and internet gambling management company shall not assign,
delegate, subcontract, or transfer the internet gambling management
company's duties and responsibilities under the contract to a third
party.
(E)
An internet gambling management company shall be licensed under this
section before entering into a contract with an internet gambling
operator.
(F)(1)
Subject to division (F)(2) of this section, the provisions of this
chapter concerning an internet gambling operator apply to an internet
gambling management company that contracts with an internet gambling
operator with respect to all rights, duties, and liabilities of the
internet gambling operator assigned, delegated, subcontracted, or
transferred to the internet gambling management company as though the
internet gambling management company were an internet gambling
operator. Unless the context requires otherwise, references in the
Revised Code to an internet gambling operator apply to an internet
gambling management company to the extent that the internet gambling
management company is acting on behalf of an internet gambling
operator pursuant to the contract.
(2)
Division (F)(1) of this section does not permit an internet gambling
management company to operate internet gambling other than pursuant
to a contract with an internet gambling operator to operate internet
gambling on behalf of the internet gambling operator.
(G)
The commission's rules shall not require an applicant for an internet
gambling management company license who currently holds a management
services provider or mobile management services provider license
issued under Chapter 3775. of the Revised Code to take action to
satisfy any additional requirement for the internet gambling
management company license that is substantially similar to any
requirement the applicant previously has satisfied in order to obtain
or renew the applicant's management services provider or mobile
management services provider license issued under Chapter 3775. of
the Revised Code.
(H)
An applicant for an initial or renewed internet gambling management
company license shall meet all requirements for licensure established
by the commission by rule and shall pay the fee required under
division (C)(3) of section 109.572 of the Revised Code, along with a
nonrefundable application fee in an amount determined by the
commission by rule.
(I)
The commission may accept another jurisdiction's license, if the
commission determines it has similar licensing requirements, as
evidence that the applicant meets the requirements for an internet
gambling management company license issued under this section.
(J)
An internet gambling management company is not required to pay the
commission a license fee upon issuance of an initial or renewed
internet gambling management company license.
(K)
An internet gambling management company license is valid for a term
of five years, provided that when the commission issues an initial
internet gambling management company license to a person who also
holds a current and valid mobile management services provider or
management services provider license issued under Chapter 3775. of
the Revised Code, the term of the initial internet gambling
management company license shall be extended to expire on the date
that is five years after the person's mobile management services
provider or management services provider license expires or, if the
person holds more than one such license under Chapter 3775. of the
Revised Code, the date that is five years after the latest expiration
date of any of those licenses.
(L)(1)
Subject to division (L)(2) of this section, in order to renew an
internet gambling management company license, the licensee shall
apply to the commission for a renewed license in the same manner as
for an initial license.
(2)
An applicant for a renewed internet gambling management company
license who currently holds a mobile management services company or
management services company license issued under Chapter 3775. of the
Revised Code is not required to take action to satisfy any additional
requirement for the renewed internet gambling management company
license that is substantially similar to any requirement the
applicant previously has satisfied in order to obtain or renew the
applicant's mobile management services provider or management
services provider license.
(M)
The commission shall adopt a rule setting a maximum number of
internet gambling management company licenses a person may hold at
any one time.
Sec.
3771.06.
(A)
An internet gambling supplier shall hold an appropriate and valid
internet gambling supplier license issued by the Ohio casino control
commission at all times. The commission may accept another
jurisdiction's license, if the commission determines it has similar
licensing requirements, as evidence that the applicant meets the
requirements for a license issued under this section. The commission
shall issue an internet gambling supplier license to a person or
entity that meets the requirements of this chapter and of the
commission's rules.
(B)
An applicant for an initial or renewed internet gambling supplier
license shall apply for the license on a form prescribed by the
commission and shall pay the fee required under division (C)(3) of
section 109.572 of the Revised Code, along with a nonrefundable
application fee of fifty thousand dollars.
(C)
Upon receiving an initial or renewed internet gambling supplier
license, the applicant shall pay a nonrefundable license fee of one
hundred thousand dollars.
(D)
An internet gambling supplier license is valid for a term of three
years, provided that when the commission issues an initial internet
gambling supplier license to a person who also holds a current and
valid sports gaming supplier license issued under Chapter 3775. of
the Revised Code, the term of the initial internet gambling supplier
license shall be extended to expire on the date that is three years
after the person's sports gaming supplier license expires.
(E)(1)
Subject to division (E)(2) of this section, in order to renew an
internet gambling supplier license, the licensee shall apply to the
commission for a renewed license in the same manner as for an initial
license.
(2)
An applicant for a renewed internet gambling supplier license who
currently holds a sports gaming supplier license issued under Chapter
3775. of the Revised Code is not required to take action to satisfy
any additional requirement for the renewed internet gambling supplier
license that is substantially similar to any requirement the
applicant previously has satisfied in order to obtain or renew the
applicant's sports gaming supplier license.
Sec.
3771.07.
(A)(1)
An individual whose duties include any of the following shall hold an
appropriate and valid internet gambling occupational license issued
by the Ohio casino control commission at all times:
(a)
Accepting internet gambling wagers on behalf of an internet gambling
operator;
(b)
Handling money as part of operating internet gambling on behalf of an
internet gambling operator;
(c)
Performing other duties such that the individual has the ability to
alter material aspects of internet gambling conducted by an internet
gambling operator.
(2)
An individual is not required to have an internet gambling
occupational license if the individual's duties are related solely to
nongaming activities.
(B)
The commission shall issue an internet gambling occupational license
to an individual who meets the requirements of this chapter and of
the commission's rules, provided that the commission's rules shall
not require an applicant for an internet gambling occupational
license who currently holds a video lottery license issued under
Chapter 3770. or a license issued under Chapter 3772. or 3775. of the
Revised Code to take action to satisfy any additional requirement for
an internet gambling occupational license that is substantially
similar to any requirement the applicant previously has satisfied in
order to obtain or renew the applicant's video lottery license or
license issued under Chapter 3772. or 3775. of the Revised Code.
(C)
An internet gambling occupational license permits the licensee to be
employed in the capacity the commission designates during the
duration of the license. The commission may establish by rule job
classifications with different requirements.
(D)
An applicant for an initial or renewed internet gambling occupational
license shall apply for the license on a form prescribed by the
commission and shall pay the fee required under division (C)(3) of
section 109.572 of the Revised Code, along with a nonrefundable
application fee of one hundred dollars. The commission may annually
increase the amount of the application fee in an amount that does not
exceed the percentage increase in the consumer price index for the
previous year, as necessary to cover the cost of processing the
application. As used in this division, "consumer price index"
means the consumer price index for all urban consumers or its
successive equivalent, as determined by the United States department
of labor, bureau of labor statistics, or its successor in
responsibility, for all items, Series A.
(E)
Upon receiving an initial or renewed internet gambling occupational
license, the applicant shall pay a nonrefundable license fee of fifty
dollars. An applicant's employer may pay the fees described in this
section on behalf of the applicant.
(F)
The commission may adopt rules allowing an individual who holds an
internet gambling occupational license from another jurisdiction to
be licensed in this state by reciprocity, so long as that
jurisdiction's requirements to receive that license and the
activities authorized by the license are substantially similar to
those of this state with respect to the license the individual seeks.
(G)
An internet gambling occupational license is valid for a term of
three years. In order to renew an internet gambling occupational
license, the licensee shall apply to the commission for a renewed
license in the same manner as for an initial license.
Sec.
3771.08.
(A)
An applicant for an internet gambling license shall establish the
applicant's suitability for the license by clear and convincing
evidence.
(B)
In issuing initial and renewed internet gambling licenses, the
commission shall consider all of the following factors, in addition
to all other requirements for licensure specified under this chapter
and in the rules of the commission:
(1)
The reputation, experience, and financial integrity of the applicant
and any person that controls the applicant;
(2)
The financial ability of the applicant to purchase and maintain
adequate liability and casualty insurance and to provide an adequate
surety bond;
(3)
The past and present compliance of the applicant and its affiliates
or affiliated companies with gambling-related licensing requirements
in this state or any other jurisdiction, including whether the
applicant has a history of noncompliance with those requirements;
(4)
Whether the applicant has been charged with, indicted for, or
convicted of any felony or misdemeanor criminal offense under the
laws of any jurisdiction, not including any traffic violation;
(5)
Whether the applicant has filed, or had filed against it, a
proceeding for bankruptcy, or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the payment
of any debt;
(6)
Whether the applicant has been served with a complaint or other
notice filed with any public body regarding a payment of any tax
required under federal, state, or local law that has been delinquent
for one or more years;
(7)
Whether the applicant is or has been a defendant in litigation
involving its business practices;
(8)
Whether awarding a license would undermine the public's confidence in
the gaming industry in this state.
(C)
The commission shall not grant an internet gambling license to an
applicant if evidence satisfactory to the commission exists that the
applicant has done any of the following:
(1)
Knowingly made a false statement to the commission;
(2)
Been suspended from operating a gambling game, gaming device, or
gaming operation, or had a license revoked by any governmental unit
of a national, state, or local body exercising governmental
functions;
(3)
Been convicted of a disqualifying offense, as defined in section
3772.07 of the Revised Code;
(4)
Been directly involved in or employed by any offshore wagering market
that illegally serviced the United States or otherwise accepted
illegal wagers from individuals located in the United States on or
after April 16, 2015.
(D)
The commission may deny an internet gambling operator or internet
gambling management company license to any applicant, reprimand any
internet gambling operator or internet gambling management company,
or suspend or revoke an internet gambling operator or internet
gambling management company license if any of the following are true:
(1)
The applicant or licensee has not demonstrated to the commission's
satisfaction financial responsibility sufficient to adequately meet
the requirements of the enterprise.
(2)
The applicant or licensee is not the true owner of the business or is
not the sole owner and has not disclosed the existence or identity of
other persons who have an ownership interest in the business.
(3)
The applicant or licensee is a corporation that sells more than five
per cent of the corporation's voting stock, or more than five per
cent of the voting stock of a corporation that controls the
corporation, or sells the corporation's assets, other than those
bought and sold in the ordinary course of business, or any interest
in the assets, to any person who, under division (C) of section
3771.03 of the Revised Code, must meet the qualifications of an
internet gambling operator or internet gambling management company,
as applicable, and who has not already been determined by the
commission to have met the applicable qualifications.
(E)(1)
The commission shall revoke an internet gambling operator license
that was issued to a permit holder if the licensee ceases to qualify
as a permit holder.
(2)
The commission shall revoke an internet gambling operator license
that was issued to a casino operator if the licensee ceases to
qualify as a casino operator.
(3)
The commission shall revoke an internet gambling operator license if
the licensee comes under the control of a person that also controls
another internet gambling operator, as determined under division (C)
of section 3771.03 of the Revised Code.
(F)
The commission shall not grant an internet gambling license to any of
the following persons:
(1)
A nonprofit corporation or organization;
(2)
An individual who is under twenty-one years of age;
(3)
An employee of the commission.
(G)
In determining whether a person has control over an applicant for
purposes of this section, the standard described in division (C) of
section 3771.03 of the Revised Code applies.
Sec.
3771.09.
(A)
An internet gambling operator shall do all of the following:
(1)
Conduct all internet gambling activities and functions in a manner
that do not pose a threat to the public health, safety, or welfare of
the citizens of this state;
(2)
Adopt comprehensive house rules for game play governing internet
gambling transactions with its patrons, including rules that specify
the amounts to be paid on winning wagers, and submit them to the Ohio
casino control commission for approval before implementing them. The
internet gambling operator shall publish its house rules as part of
its minimum internal control standards, shall display the house
rules, together with any other information the commission considers
appropriate, conspicuously on each internet gambling platform and in
any other place or manner prescribed by the commission, and shall
make its house rules readily available to patrons.
(3)
Keep current in all payments and obligations to the commission;
(4)
Provide a secure location for the placement, operation, and use of
internet gambling equipment;
(5)
Prevent any person from tampering with or interfering with the
operation of internet gambling;
(6)
Employ commercially reasonable methods to prevent the internet
gambling operator and its agents and employees from disclosing any
confidential information in the possession of the internet gambling
operator that could affect the conduct of internet gambling;
(7)
Ensure that internet gambling occurs only in the manner approved by
the commission;
(8)
Ensure that all internet gambling is monitored in accordance with
division (H) of section 3771.02 of the Revised Code;
(9)
Maintain sufficient funds and other supplies to conduct internet
gambling at all times;
(10)
Maintain daily records showing the internet gambling operator's
internet gambling receipts and timely file with the commission any
additional reports required by rule or other provisions of the
Revised Code;
(11)
Withhold all required amounts from patrons' internet gambling
winnings;
(12)
Submit to the commission, each fiscal year, an audit of the internet
gambling operator's financial transactions and the condition of the
internet gambling operator's total operations prepared by a certified
public accountant in accordance with generally accepted accounting
principles and applicable state and federal laws;
(13)
Submit to the commission, at least once every three years, an audit
of the internet gambling operator's information technology systems
and security protocols prepared by a qualified, independent, and
capable third party, as determined by, and in a manner approved by,
the commission.
(B)
An internet gambling operator shall immediately report to the
commission any information in the internet gambling operator's
possession related to any of the following:
(1)
Any wager in violation of this chapter, rules adopted under this
chapter, or federal law;
(2)
Abnormal internet gambling activity or patterns that may indicate a
concern regarding the integrity of any internet gambling game;
(3)
Suspicious wagering activities;
(4)
Any conduct that corrupts a wagering outcome of an internet gambling
game for purposes of financial gain;
(5)
Any criminal or disciplinary proceedings commenced against the
internet gambling operator by any person other than the commission in
connection with the internet gambling operator's operations.
(C)(1)
An internet gambling operator may provide promotional credits to
patrons, subject to oversight by the commission.
(2)
No internet gambling operator shall provide a credit, discount, or
other similar item to a patron to enable the placement of, or
increase in, a wager on an internet gambling game.
(D)
An internet gambling operator is not liable under the laws of this
state to any party, including a patron, for disclosing information as
required under this chapter or for refusing to disclose information
that is not required by law to be disclosed.
Sec.
3771.10.
(A)
An internet gambling operator may operate one internet gambling
platform through which the internet gambling operator accepts wagers
from individuals who are at least twenty-one years of age and who are
physically located in this state. The internet gambling operator
shall use location-based technology to prohibit individuals who are
not physically present in this state from participating in internet
gambling through an internet gambling platform.
(B)(1)
As used in division (B) of this section, "internet gambling
account" means an electronic account that an individual may
establish for the purpose of internet gambling, including making
deposits and withdrawals, wagering amounts, and receiving payouts on
winning wagers.
(2)
An internet gambling operator may accept a wager from an individual
through an internet gambling platform only using the individual's
internet gambling account. The internet gambling account shall be in
the individual's full legal name and shall not be in the name of any
beneficiary, custodian, joint trust, corporation, partnership, or
other organization or entity.
(3)
An internet gambling account may be established and funded in person
through employees or sales agents of an internet gambling operator
or, pursuant to rules adopted by the Ohio casino control commission,
through an internet gambling platform in a manner that complies with
the internet gambling operator's internal controls.
(4)
No internet gambling operator shall accept a deposit into a patron's
internet gambling account that is funded by a credit card transaction
or other credit-based payment method, as determined by the
commission. An internet gambling operator may accept a deposit into a
patron's internet gambling account that is funded by debit card,
automated clearing house transfer, wire transfer, or other means
approved by the commission.
(C)
The server responsible for accepting wagers through an internet
gambling platform shall be located in this state.
Sec.
3771.11.
(A)
No individual who is on the commission's internet gambling exclusion
list created under section 3772.031 of the Revised Code shall
participate in the play or operation of internet gambling in this
state.
(B)(1)
An internet gambling operator may exclude any individual from
participating in the play or operation of internet gambling conducted
by the internet gambling operator. The internet gambling operator
shall keep a list of all excluded individuals. No individual who is
on an internet gambling operator's exclusion list shall participate
in the play or operation of internet gambling conducted by the
internet gambling operator under this chapter.
(2)
If an internet gambling operator excludes an individual because the
internet gambling operator determines that the individual engaged or
attempted to engage in any internet gambling related activity that is
prohibited under this chapter or under the commission's rules, the
internet gambling operator shall report that fact to the commission.
(C)(1)
An internet gambling operator shall employ commercially reasonable
methods to prevent any person who is participating in the internet
gambling voluntary exclusion program from engaging in internet
gambling conducted by the internet gambling operator.
(2)
Absent gross negligence, all of the following persons are immune from
any type of civil liability on the basis that a person who is
participating in the internet gambling voluntary exclusion program
participates in internet gambling conducted under this chapter:
(a)
The commission or any other agency of this state and its agents or
employees;
(b)
An internet gambling licensee and its agents or employees.
(D)
No internet gambling operator, no director, officer, agent, or
employee of an internet gambling operator, no other person who has a
financial interest in an internet gambling operator, and no person
living in the same household as any of those persons, shall engage in
any internet gambling conducted by the internet gambling operator,
other than as part of operating internet gambling or as part of the
employee's employment. An internet gambling operator shall employ
commercially reasonable methods to prevent those persons, and any
other person who has access to confidential information held by the
internet gambling operator, from engaging in internet gambling
conducted by the internet gambling operator.
(E)
No member or employee of the Ohio casino control commission or the
state lottery commission shall knowingly participate in internet
gambling conducted by an internet gambling operator in this state or
participate in internet gambling with any person or entity located
outside this state that is directly or indirectly owned or operated
by an internet gambling operator. An internet gambling operator shall
employ commercially reasonable methods to prevent such a person from
engaging in internet gambling conducted by the internet gambling
operator.
Sec.
3771.12.
(A)
Notwithstanding any contrary provision of section 149.43 of the
Revised Code, the Ohio casino control commission shall not disclose
to the public any of the following:
(1)
Any of the following information or documents concerning a person who
has applied for or been issued a license under this chapter or the
person's spouse, dependent, or employee, unless the person authorizes
the commission to disclose the information:
(a)
A social security number, passport number, or federal tax
identification number;
(b)
A home address, telephone number, or electronic mail address;
(c)
A birth certificate;
(d)
A driver's license or state identification card number;
(e)
The name or address of a previous spouse;
(f)
A date or place of birth;
(g)
Any personal financial information or records, including personal tax
returns and information and records of criminal proceedings;
(h)
Any information concerning a minor child;
(i)
Any information concerning a person the commission has reason to know
is a victim of domestic violence, sexual assault, or stalking;
(j)
Any trade secret, medical records, or patents or exclusive licenses;
(k)
Security information, including risk prevention plans, detection and
countermeasures, location of money storage areas, emergency
management plans, security and surveillance plans, equipment and
usage protocols, and theft and fraud prevention plans and
countermeasures;
(l)
Any other information that the commission receives from another
jurisdiction relating to a person who holds, held, or has applied for
a license under this chapter.
(B)
Except as otherwise provided in division (A) of this section, all of
the following information is subject to disclosure as a public record
under section 149.43 of the Revised Code:
(1)
The information an internet gambling operator or an applicant for an
internet gambling operator or internet gambling management company
license has submitted to the commission as part of applying for or
renewing an internet gambling operator or internet gambling
management company license;
(2)
The name, place of employment, job title, and gaming experience of a
person who has applied for or been issued a license under this
chapter;
(3)
The commission's reasons for denying or revoking a license under this
chapter or for taking other disciplinary action under this chapter.
(C)
Division (A) of this section does not prohibit the commission from
disclosing information and documents described in that division to
the state lottery commission or to the inspector general, a
prosecuting authority, a law enforcement agency, or any other
appropriate governmental entity or licensing agency, provided that
the recipient shall not disclose the information and documents to the
public.
Sec.
3771.13.
(A)
All shipments of gambling devices, including any internet gambling
equipment, to internet gambling operators or internet gambling
management companies are legal shipments of gambling devices into
this state, as long as the supplier has completed the registering,
recording, and labeling of the equipment in accordance with the
"Gambling Devices Act of 1962," 15 U.S.C. 1171 to 1178.
(B)
This state is exempt from section 2 of the "Gambling Devices Act
of 1962," 15 U.S.C. 1172.
Sec.
3771.14.
(A)
Pursuant to section 131.02 of the Revised Code, the attorney general
shall develop and implement a real time data match program and make
it available to each internet gambling operator to identify patrons
who owe amounts to the state or a political subdivision.
(B)(1)
Before disbursing any internet gambling winnings to a patron in an
amount for which reporting to the internal revenue service of the
amount is required by section 6041 of the Internal Revenue Code, as
amended, an internet gambling operator shall consult the data match
program to determine whether the patron owes any amounts to the state
or a political subdivision. If the data match program indicates that
the patron owes any amounts to the state or a political subdivision,
the internet gambling operator shall withhold from the patron's
winnings an amount sufficient to satisfy those amounts, up to the
amount of the winnings.
(2)
If the data match program described in section 3123.90 of the Revised
Code indicates that the patron also is in default under a support
order, the internet gambling operator shall transmit to the
department of job and family services an amount sufficient to satisfy
any past due support owed by the patron, up to the amount of the
winnings, before transmitting any remaining amount to the attorney
general under division (C) of this section.
(C)(1)
Not later than fourteen days after withholding an amount under
division (B) of this section, the internet gambling operator shall
transmit to the attorney general any amount withheld and not already
disbursed to the department of job and family services under section
3123.90 of the Revised Code as payment on the amount owed.
(2)
If the patron owes more than one amount to the state or a political
subdivision as identified by the data match program described in this
section, the amount owed to the state shall be satisfied first,
except that any amounts owed under section 5739.33 and division (G)
of section 5747.07 of the Revised Code shall have first priority.
(D)
Except as otherwise provided in section 131.021 of the Revised Code,
this section applies only to amounts owed that have become final.
(E)
The attorney general, in consultation with the commission, may adopt
rules under Chapter 119. of the Revised Code as necessary to
implement this section.
Sec.
3771.99.
(A)
Whoever knowingly does any of the following commits a misdemeanor of
the first degree on the first offense and a felony of the fifth
degree on a subsequent offense:
(1)
Makes a false statement on an application submitted under this
chapter;
(2)
Permits an individual under twenty-one years of age to engage in
internet gambling;
(3)
Participates in internet gambling in violation of division (D) of
section 3771.11 of the Revised Code, other than as part of operating
internet gambling or as part of the employee's employment.
(B)
Whoever knowingly does any of the following commits a felony of the
fifth degree on a first offense and a felony of the fourth degree on
a subsequent offense. If the person is an internet gambling licensee,
the Ohio casino control commission shall revoke the person's license
issued under this chapter after the first offense.
(1)
Offers, promises, or gives anything of value to anyone for the
purpose of influencing the outcome of an internet gambling game or
attempts to do so;
(2)
Places, increases, or decreases a wager after acquiring knowledge not
available to the general public that anyone has been offered,
promised, or given anything of value for the purpose of influencing
the outcome of an internet gambling game upon which the wager is
placed, increased, or decreased, or attempts to do so;
(3)
Manufactures, sells, or distributes any device that is intended by
that person to be used to violate any provision of this chapter or
the internet gambling laws of any other state;
(4)
Places a bet or aids any other person in placing a bet on an internet
gambling game after unlawfully acquiring knowledge of the outcome on
which winnings from that bet are contingent;
(5)
Claims, collects, or takes anything of value from an internet
gambling operator with intent to defraud or attempts to do so without
having made a wager in which the amount or value is legitimately won
or owed;
(6)
Places a wager using counterfeit currency or other counterfeit form
of credit approved for wagering;
(7)
Possesses any device intended to be used to violate this chapter or
any rule adopted under this chapter, or any materials used to
manufacture such a device. This division does not apply to an
internet gambling operator or to an agent or employee of an internet
gambling operator who is acting in furtherance of the internet
gambling operator's interest.
(8)
Changes or alters the normal outcome of any internet gambling
conducted through an internet gambling platform, including any system
used to monitor the internet gambling platform, or the way in which
the outcome is reported to any patron;
(9)
Operates internet gambling in a manner other than the manner required
under this chapter. Premises or any internet web site used or
occupied in violation of this division constitute a nuisance subject
to abatement under Chapter 3767. of the Revised Code.
(C)
Whoever knowingly does any of the following commits a felony of the
third degree. If the person is an internet gambling licensee, the
commission shall revoke the person's license issued under this
chapter after the first offense. If the person is a public servant or
political party official, the person is forever disqualified from
holding any public office, employment, or position of trust in this
state.
(1)
Offers, promises, or gives anything of value or benefit to a person
who is connected with an internet gambling operator, an agent or
employee of an internet gambling operator, or a member, agent, or
employee of the Ohio casino control commission, under an agreement to
influence, or with the intent to influence, the actions of the person
to whom the offer, promise, or gift is made in order to affect or
attempt to affect the outcome of internet gambling or an official
action of a member, agent, or employee of the Ohio casino control
commission;
(2)
Solicits, accepts, or receives a promise of anything of value or
benefit while the person is connected with an internet gambling
operator, an agent or employee of an internet gambling operator, or a
member, agent, or employee of the Ohio casino control commission,
under an agreement to influence, or with the intent to influence, the
actions of the person to affect or attempt to affect the outcome of
internet gambling or an official action of a member, agent, or
employee of the Ohio casino control commission.
(D)
Whoever knowingly does any of the following while participating in
internet gambling or otherwise transacting with an internet gambling
operator as permitted under this chapter commits a felony of the
fifth degree on a first offense and a felony of the fourth degree on
a subsequent offense:
(1)
Causes or attempts to cause the person to fail to file a report
required under 31 U.S.C. 5313(a) or 5325 or any regulation prescribed
thereunder or section 1315.53 of the Revised Code, or to fail to file
a report or maintain a record required by an order issued under
section 21 of the "Federal Deposit Insurance Act" or
section 123 of Pub. L. No. 91-508;
(2)
Causes or attempts to cause the person to file a report under 31
U.S.C. 5313(a) or 5325 or any regulation prescribed thereunder or
section 1315.53 of the Revised Code, to file a report or to maintain
a record required by any order issued under 31 U.S.C. 3126, or to
maintain a record required under any regulation prescribed under
section 21 of the "Federal Deposit Insurance Act" or
section 123 of Pub. L. No. 91-508 that contains a material omission
or misstatement of fact;
(3)
With one or more internet gambling operators, structures a
transaction, is complicit in structuring a transaction, attempts to
structure a transaction, or is complicit in an attempt to structure a
transaction. As used in this division:
(a)
To be "complicit" means to engage in any conduct of a type
described in divisions (A)(1) to (4) of section 2923.03 of the
Revised Code.
(b)
"Structure a transaction" has the same meaning as in
section 1315.51 of the Revised Code.
Sec.
3772.01.
As
used in this chapter:
(A)
"Applicant" means any person who applies to the commission
for a license under this chapter.
(B)
"Casino control commission fund" means the casino control
commission fund described in Section 6(C)(3)(d) of Article XV, Ohio
Constitution, the money in which shall be used to fund the commission
and its related affairs.
(C)
"Casino facility" means a casino facility as defined in
Section 6(C)(9) of Article XV, Ohio Constitution.
(D)
"Casino game" means any slot machine or table game as
defined in this chapter.
(E)
(E)(1)
"Casino gaming" means any type of slot machine or table
game wagering, using money, casino credit, or any representative of
value, authorized in any of the states of Indiana, Michigan,
Pennsylvania, and West Virginia as of January 1, 2009, and includes
slot machine and table game wagering subsequently authorized by, but
shall not be limited by, subsequent restrictions placed on such
wagering in such states.
"Casino
(2)
"Casino
gaming"
does not include
bingo,
any
of the following:
(a)
Bingo,
as
authorized in Section 6 of Article XV, Ohio Constitution and
conducted as of January 1, 2009;
horse
(b)
Horse
racing
where the pari-mutuel system of wagering is conducted, as authorized
under the laws of this state as of January 1, 2009;
or
sports
(c)
Sports
gaming
;
(d)
Internet gambling authorized under Chapter 3771. of the Revised Code
.
(F)
"Casino gaming employee" means any employee of a casino
operator or management company, but not a key employee, and as
further defined in section 3772.131 of the Revised Code.
(G)
"Casino operator" means any person, trust, corporation,
partnership, limited partnership, association, limited liability
company, or other business enterprise that directly or indirectly
holds an ownership or leasehold interest in a casino facility.
"Casino operator" does not include an agency of the state,
any political subdivision of the state, any person, trust,
corporation, partnership, limited partnership, association, limited
liability company, or other business enterprise that may have an
interest in a casino facility, but who is legally or contractually
restricted from conducting casino gaming.
(H)
"Central system" means a computer system that provides the
following functions related to casino gaming equipment used in
connection with casino gaming authorized under this chapter:
security, auditing, data and information retrieval, and other
purposes deemed necessary and authorized by the commission.
(I)
"Cheat" means to alter the result of a casino game, the
element of chance, the operation of a machine used in a casino game,
or the method of selection of criteria that determines (a) the result
of the casino game, (b) the amount or frequency of payment in a
casino game, (c) the value of a wagering instrument, or (d) the value
of a wagering credit. "Cheat" does not include an
individual who, without the assistance of another individual or
without the use of a physical aid or device of any kind, uses the
individual's own ability to keep track of the value of cards played
and uses predictions formed as a result of the tracking information
in the individual's playing and betting strategy.
(J)
"Commission" means the Ohio casino control commission.
(K)
"Gaming agent" means a peace officer employed by the
commission that is vested with duties to enforce this chapter and
conduct other investigations into the conduct of the casino gaming
and the maintenance of the equipment that the commission considers
necessary and proper and is in compliance with section 109.77 of the
Revised Code.
(L)
"Gaming-related vendor" means any individual, partnership,
corporation, association, trust, or any other group of individuals,
however organized, who supplies gaming-related equipment, goods, or
services to a casino operator or management company, that are
directly related to or affect casino gaming authorized under this
chapter, including, but not limited to, the manufacture, sale,
distribution, or repair of slot machines and table game equipment.
(M)
"Holding company" means any corporation, firm, partnership,
limited partnership, limited liability company, trust, or other form
of business organization not a natural person which directly or
indirectly does any of the following:
(1)
Has the power or right to control a casino operator, management
company, or gaming-related vendor license applicant or licensee;
(2)
Holds an ownership interest of five per cent or more, as determined
by the commission, in a casino operator, management company, or
gaming-related vendor license applicant or licensee;
(3)
Holds voting rights with the power to vote five per cent or more of
the outstanding voting rights of a casino operator, management
company, or gaming-related vendor applicant or licensee.
(N)
"Initial investment" includes costs related to demolition,
engineering, architecture, design, site preparation, construction,
infrastructure improvements, land acquisition, fixtures and
equipment, insurance related to construction, and leasehold
improvements.
(O)
"Institutional investor" means any of the following
entities owning five per cent or more, but less than twenty-five per
cent, of an ownership interest in a casino facility, casino operator,
management company, or holding company: a corporation, bank,
insurance company, pension fund or pension fund trust, retirement
fund, including funds administered by a public agency, employees'
profit-sharing fund or employees' profit-sharing trust, any
association engaged, as a substantial part of its business or
operations, in purchasing or holding securities, including a hedge
fund, mutual fund, or private equity fund, or any trust in respect of
which a bank is trustee or cotrustee, investment company registered
under the "Investment Company Act of 1940," 15 U.S.C. 80a-1
et seq., collective investment trust organized by banks under Part
Nine of the Rules of the Comptroller of the Currency, closed-end
investment trust, chartered or licensed life insurance company or
property and casualty insurance company, investment advisor
registered under the "Investment Advisors Act of 1940," 15
U.S.C. 80 b-1 et seq., and such other persons as the commission may
reasonably determine to qualify as an institutional investor for
reasons consistent with this chapter, and that does not exercise
control over the affairs of a licensee and its ownership interest in
a licensee is for investment purposes only, as set forth in division
(F) of section 3772.10 of the Revised Code.
(P)
"Key employee" means any executive, employee, agent, or
other individual who has the power to exercise significant influence
over decisions concerning any part of the operation of a person that
has applied for or holds a casino operator, management company, or
gaming-related vendor license or the operation of a holding company
of a person that has applied for or holds a casino operator,
management company, or gaming-related vendor license, including:
(1)
An officer, director, trustee, partner, or an equivalent fiduciary;
(2)
An individual who holds a direct or indirect ownership interest of
five per cent or more;
(3)
An individual who performs the function of a principal executive
officer, principal operating officer, principal accounting officer,
or an equivalent officer;
(4)
Any other individual the commission determines to have the power to
exercise significant influence over decisions concerning any part of
the operation.
(Q)
"Licensed casino operator" means a casino operator that has
been issued a license by the commission and that has been certified
annually by the commission to have paid all applicable fees, taxes,
and debts to the state.
(R)
"Majority ownership interest" in a license or in a casino
facility, as the case may be, means ownership of more than fifty per
cent of such license or casino facility, as the case may be. For
purposes of the foregoing, whether a majority ownership interest is
held in a license or in a casino facility, as the case may be, shall
be determined under the rules for constructive ownership of stock
provided in Treas. Reg. 1.409A-3(i)(5)(iii) as in effect on January
1, 2009.
(S)
"Management company" means an organization retained by a
casino operator to manage a casino facility and provide services such
as accounting, general administration, maintenance, recruitment, and
other operational services.
(T)
"Ohio law enforcement training fund" means the state law
enforcement training fund described in Section 6(C)(3)(f) of Article
XV, Ohio Constitution, the money in which shall be used to enhance
public safety by providing training opportunities to the law
enforcement community.
(U)
"Person" includes, but is not limited to, an individual or
a combination of individuals; a sole proprietorship, a firm, a
company, a joint venture, a partnership of any type, a joint-stock
company, a corporation of any type, a corporate subsidiary of any
type, a limited liability company, a business trust, or any other
business entity or organization; an assignee; a receiver; a trustee
in bankruptcy; an unincorporated association, club, society, or other
unincorporated entity or organization; entities that are disregarded
for federal income tax purposes; and any other nongovernmental,
artificial, legal entity that is capable of engaging in business.
(V)
"Problem casino gambling and addictions fund" means the
state problem gambling and addictions fund described in Section
6(C)(3)(g) of Article XV, Ohio Constitution, the money in which shall
be used for treatment of problem gambling and substance abuse, and
for related research.
(W)
"Promotional gaming credit" means a slot machine or table
game credit, discount, or other similar item issued to a patron to
enable the placement of, or increase in, a wager at a slot machine or
table game.
(X)
"Slot machine" means any mechanical, electrical, or other
device or machine which, upon insertion of a coin, token, ticket, or
similar object, or upon payment of any consideration, is available to
play or operate, the play or operation of which, whether by reason of
the skill of the operator or application of the element of chance, or
both, makes individual prize determinations for individual
participants in cash, premiums, merchandise, tokens, or any thing of
value, whether the payoff is made automatically from the machine or
in any other manner, but does not include any device that is a
skill-based amusement machine, or an electronic instant bingo system,
as defined in section 2915.01 of the Revised Code.
(Y)
"Table game" means any game played with cards, dice, or any
mechanical, electromechanical, or electronic device or machine for
money, casino credit, or any representative of value. "Table
game" does not include slot machines.
(Z)
"Upfront license" means the first plenary license issued to
a casino operator.
(AA)
"Voluntary exclusion program" means a program provided by
the commission that allows persons to voluntarily exclude themselves
from the gaming areas of facilities under the jurisdiction of the
commission by placing their name on a voluntary exclusion list and
following the procedures set forth by the commission.
(BB)
"Sports gaming," "sports gaming proprietor,"
"sports gaming facility," "sporting event,"
"mobile management services provider," and "management
services provider" have the same meanings as in section 3775.01
of the Revised Code. A person is considered to be involved in a
sporting event if division (F)(3) of section 3775.13 of the Revised
Code applies to the person with respect to that sporting event.
(CC)
"Internet gambling," "internet gambling operator,"
and "internet gambling management company" have the same
meanings as in section 3771.01 of the Revised Code.
Sec.
3772.02.
(A)
There is hereby created the Ohio casino control commission described
in Section 6(C)(4) of Article XV, Ohio Constitution.
(B)
The commission shall consist of seven members appointed within one
month of September 10, 2010, by the governor with the advice and
consent of the senate. The governor shall forward all appointments to
the senate within twenty-four hours.
(1)
Each commission member is eligible for reappointment at the
discretion of the governor. No commission member shall be appointed
for more than three terms in total.
(2)
Each commission member shall be a resident of Ohio.
(3)
At least one commission member shall be experienced in law
enforcement and criminal investigation.
(4)
At least one commission member shall be a certified public accountant
experienced in accounting and auditing.
(5)
At least one commission member shall be an attorney admitted to the
practice of law in Ohio.
(6)
At least one commission member shall be a resident of a county where
one of the casino facilities is located.
(7)
Not more than four commission members shall be of the same political
party.
(8)
No commission member shall have any affiliation with an Ohio casino
operator or facility
,
with an internet gambling operator or internet gambling management
company,
or with a sports gaming proprietor, mobile management services
provider, or management services provider licensed under Chapter
3775. of the Revised Code.
(C)
Commission members shall serve four-year terms, except that when the
governor makes initial appointments to the commission under this
chapter, the governor shall appoint three members to serve four-year
terms with not more than two such members from the same political
party, two members to serve three-year terms with such members not
being from the same political party, and two members to serve
two-year terms with such members not being from the same political
party.
(D)
Each commission member shall hold office from the date of appointment
until the end of the term for which the member was appointed. Any
member appointed to fill a vacancy occurring before the expiration of
the term for which the member's predecessor was appointed shall hold
office for the remainder of the unexpired term. Any member shall
continue in office after the expiration date of the member's term
until the member's successor takes office, or until a period of sixty
days has elapsed, whichever occurs first. A vacancy in the commission
membership shall be filled in the same manner as the original
appointment.
(E)
The governor shall select one member to serve as chairperson and the
commission members shall select one member from a different party
than the chairperson to serve as vice-chairperson. The governor may
remove and replace the chairperson at any time. No such member shall
serve as chairperson for more than six successive years. The
vice-chairperson shall assume the duties of the chairperson in the
absence of the chairperson. The chairperson and vice-chairperson
shall perform but shall not be limited to additional duties as are
prescribed by commission rule.
(F)
A commission member is not required to devote the member's full time
to membership on the commission. Beginning on September 29, 2015,
each member of the commission shall receive compensation of fifty
thousand dollars per year. Beginning July 1, 2016, each member of the
commission shall receive compensation of forty thousand dollars per
year. Beginning July 1, 2017, each member of the commission shall
receive compensation of thirty thousand dollars per year. Each member
shall receive the member's actual and necessary expenses incurred in
the discharge of the member's official duties.
(G)
The governor shall not appoint an individual to the commission, and
an individual shall not serve on the commission, if the individual is
ineligible to be appointed or retained under section 3772.07 of the
Revised Code. A member who comes under indictment or bill of
information of an offense that, if the member were convicted of the
offense, would make the member ineligible to be appointed or retained
under that section shall resign from the commission immediately upon
indictment.
(H)
At least five commission members shall be present for the commission
to meet. The concurrence of four members is necessary for the
commission to take any action. All members shall vote on the adoption
of rules, and the approval of, and the suspension or revocation of,
the licenses of casino operators or management companies, unless a
member has a written leave of absence filed with and approved by the
chairperson.
(I)
A commission member may be removed or suspended from office in
accordance with section 3.04 of the Revised Code.
(J)
Each commission member, before entering upon the discharge of the
member's official duties, shall make an oath to uphold the Ohio
Constitution and laws of the state of Ohio and shall give a bond,
payable by the commission, to the treasurer of state, in the sum of
ten thousand dollars with sufficient sureties to be approved by the
treasurer of state, which bond shall be filed with the secretary of
state.
(K)
The commission shall hold one regular meeting each month and shall
convene other meetings at the request of the chairperson or a
majority of the members. A member who fails to attend at least
three-fifths of the regular and special meetings of the commission
during any two-year period forfeits membership on the commission. All
meetings of the commission shall be open meetings under section
121.22 of the Revised Code except as otherwise allowed by law.
(L)
Pursuant to divisions (A)(3) and (9) of section 101.82 of the Revised
Code, the commission is exempt from the requirements of sections
101.82 to 101.87 of the Revised Code.
Sec.
3772.03.
(A)
To ensure the integrity of casino gaming, the commission shall have
authority to complete the functions of licensing, regulating,
investigating, and penalizing casino operators, management companies,
holding companies, key employees, casino gaming employees, and
gaming-related vendors. The commission also shall have jurisdiction
over all persons participating in casino gaming authorized by Section
6(C) of Article XV, Ohio Constitution, and this chapter.
(B)
All rules adopted by the commission under this chapter shall be
adopted under procedures established in Chapter 119. of the Revised
Code. The commission may contract for the services of experts and
consultants to assist the commission in carrying out its duties under
this section.
(C)
The commission shall adopt rules as are necessary for completing the
functions stated in division (A) of this section and for addressing
the subjects enumerated in division (D) of this section.
(D)
The commission shall adopt, and as advisable and necessary shall
amend or repeal, rules that include all of the following:
(1)
The prevention of practices detrimental to the public interest;
(2)
Prescribing the method of applying, and the form of application, that
an applicant for a license under this chapter must follow as
otherwise described in this chapter;
(3)
Prescribing the information to be furnished by an applicant or
licensee as described in section 3772.11 of the Revised Code;
(4)
Describing the certification standards and duties of an independent
testing laboratory certified under section 3772.31 of the Revised
Code and the relationship between the commission, the laboratory, the
gaming-related vendor, and the casino operator;
(5)
The minimum amount of insurance that must be maintained by a casino
operator, management company, holding company, or gaming-related
vendor;
(6)
The approval process for a significant change in ownership or
transfer of control of a licensee as provided in section 3772.091 of
the Revised Code;
(7)
The design of gaming supplies, devices, and equipment to be
distributed by gaming-related vendors;
(8)
Identifying the casino gaming that is permitted, identifying the
gaming supplies, devices, and equipment, that are permitted, defining
the area in which the permitted casino gaming may be conducted, and
specifying the method of operation according to which the permitted
casino gaming is to be conducted as provided in section 3772.20 of
the Revised Code, and requiring gaming devices and equipment to meet
the standards of this state;
(9)
Tournament play in any casino facility;
(10)
Establishing and implementing a voluntary exclusion program that
provides all of the following:
(a)
Except as provided by commission rule, a person who participates in
the program shall agree to refrain from entering a casino facility.
(b)
The name of a person participating in the program shall be included
on a list of persons excluded from all casino facilities.
(c)
Except as provided by commission rule, no person who participates in
the program shall petition the commission for admittance into a
casino facility.
(d)
The list of persons participating in the program and the personal
information of those persons shall be confidential and shall only be
disseminated by the commission to the state lottery commission,
casino operators,
internet
gambling operators,
sports
gaming proprietors, and their agents and employees for purposes of
enforcement and to other entities, upon request of the participant
and agreement by the commission.
(e)
A casino operator shall make all reasonable attempts as determined by
the commission to cease all direct marketing efforts to a person
participating in the program.
(f)
A casino operator shall not cash the check of a person participating
in the program or extend credit to the person in any manner. However,
the program shall not exclude a casino operator from seeking the
payment of a debt accrued by a person before participating in the
program.
(g)
Any and all locations at which a person may register as a participant
in the program shall be published.
(11)
Requiring the commission to adopt standards regarding the marketing
materials of a licensed casino operator, including allowing the
commission to prohibit marketing materials that are contrary to the
adopted standards;
(12)
Requiring that the records, including financial statements, of any
casino operator, management company, holding company, and
gaming-related vendor be maintained in the manner prescribed by the
commission and made available for inspection upon demand by the
commission, but shall be subject to section 3772.16 of the Revised
Code;
(13)
Permitting a licensed casino operator, management company, key
employee, or casino gaming employee to question a person suspected of
violating this chapter;
(14)
The chips, tokens, tickets, electronic cards, or similar objects that
may be purchased by means of an agreement under which credit is
extended to a wagerer by a casino operator;
(15)
Establishing standards for provisional key employee licenses for a
person who is required to be licensed as a key employee and is in
exigent circumstances and standards for provisional licenses for
casino gaming employees who submit complete applications and are
compliant under an instant background check. A provisional license
shall be valid not longer than three months. A provisional license
may be renewed one time, at the commission's discretion, for an
additional three months. In establishing standards with regard to
instant background checks the commission shall take notice of
criminal records checks as they are conducted under section 311.41 of
the Revised Code using electronic fingerprint reading devices.
(16)
Establishing approval procedures for third-party engineering or
accounting firms, as described in section 3772.09 of the Revised
Code;
(17)
Prescribing the manner in which winnings, compensation from casino
gaming, and gross revenue must be computed and reported by a licensee
as described in Chapter 5753. of the Revised Code;
(18)
Prescribing conditions under which a licensee's license may be
suspended or revoked as described in section 3772.04 of the Revised
Code;
(19)
Prescribing the manner and procedure of all hearings to be conducted
by the commission or by any hearing examiner;
(20)
Prescribing technical standards and requirements that are to be met
by security and surveillance equipment that is used at and standards
and requirements to be met by personnel who are employed at casino
facilities, and standards and requirements for the provision of
security at and surveillance of casino facilities;
(21)
Prescribing requirements for a casino operator to provide unarmed
security services at a casino facility by licensed casino employees,
and the training that shall be completed by these employees;
(22)
Prescribing standards according to which casino operators shall keep
accounts and standards according to which casino accounts shall be
audited, and establish means of assisting the tax commissioner in
levying and collecting the gross casino revenue tax levied under
section 5753.02 of the Revised Code;
(23)
Defining penalties for violation of commission rules and a process
for imposing such penalties;
(24)
Establishing standards for decertifying contractors that violate
statutes or rules of this state or the federal government;
(25)
Establishing standards for the repair of casino gaming equipment;
(26)
Establishing procedures to ensure that casino operators, management
companies, and holding companies are compliant with the compulsive
and problem gambling plan submitted under section 3772.18 of the
Revised Code;
(27)
Prescribing, for institutional investors in or holding companies of a
casino operator, management company, holding company, or
gaming-related vendor that fall below the threshold needed to be
considered an institutional investor or a holding company, standards
regarding what any employees, members, or owners of those investors
or holding companies may do and shall not do in relation to casino
facilities and casino gaming in this state, which standards shall
rationally relate to the need to proscribe conduct that is
inconsistent with passive institutional investment status;
(28)
Providing for any other thing necessary and proper for successful and
efficient regulation of casino gaming under this chapter.
(E)
The commission shall employ and assign gaming agents as necessary to
assist the commission in carrying out the duties of this chapter and
Chapters 2915. and 3775. of the Revised Code. In order to maintain
employment as a gaming agent, the gaming agent shall successfully
complete all continuing training programs required by the commission
and shall not have been convicted of or pleaded guilty or no contest
to an offense that makes the gaming agent ineligible for appointment
or retention under section 3772.07 of the Revised Code.
(F)
The commission, as a law enforcement agency, and its gaming agents,
as law enforcement officers as defined in section 2901.01 of the
Revised Code, shall have authority with regard to the detection and
investigation of, the seizure of evidence allegedly relating to, and
the apprehension and arrest of persons allegedly committing
violations of this chapter or gambling offenses as defined in section
2915.01 of the Revised Code or violations of any other law of this
state that may affect the integrity of casino gaming, the operation
of skill-based amusement machines, or the operation of
internet
gambling or
sports
gaming, and shall have access to casino facilities, skill-based
amusement machine facilities, and sports gaming facilities to carry
out the requirements of this chapter and
Chapter
Chapters
3771. and
3775.
of the Revised Code.
(G)
The commission may eject or exclude or authorize the ejection or
exclusion of and a gaming agent may eject a person from a casino
facility for any of the following reasons:
(1)
The person's name is on the list of persons voluntarily excluding
themselves from all casinos in a program established according to
rules adopted by the commission;
(2)
The person violates or conspires to violate this chapter or a rule
adopted thereunder; or
(3)
The commission determines that the person's conduct or reputation is
such that the person's presence within a casino facility may call
into question the honesty and integrity of the casino gaming
operations or interfere with the orderly conduct of the casino gaming
operations.
(H)
A person, other than a person participating in a voluntary exclusion
program, may petition the commission for a public hearing on the
person's ejection or exclusion under this chapter.
(I)
A casino operator or management company shall have the same authority
to eject or exclude a person from the management company's casino
facilities as authorized in division (G) of this section. The
licensee shall immediately notify the commission of an ejection or
exclusion.
(J)
The commission shall submit a written annual report with the
governor, president and minority leader of the senate, and the
speaker and minority leader of the house of representatives before
the first day of September each year. The annual report shall cover
the previous fiscal year and shall include all of the following:
(1)
A statement describing the receipts and disbursements of the
commission;
(2)
Relevant financial data regarding casino gaming, including gross
revenues and disbursements made under this chapter;
(3)
Actions taken by the commission;
(4)
An update on casino operators', management companies', and holding
companies' compulsive and problem gambling plans and the voluntary
exclusion program and list;
(5)
Information regarding prosecutions for conduct described in division
(H) of section 3772.99 of the Revised Code, including, but not
limited to, the total number of prosecutions commenced and the name
of each person prosecuted;
(6)
Any additional information that the commission considers useful or
that the governor, president or minority leader of the senate, or
speaker or minority leader of the house of representatives requests.
(K)
To ensure the integrity of skill-based amusement machine operations,
the commission shall have jurisdiction over all persons conducting or
participating in the conduct of skill-based amusement machine
operations authorized by this chapter and Chapter 2915. of the
Revised Code, including the authority to complete the functions of
licensing, regulating, investigating, and penalizing those persons in
a manner that is consistent with the commission's authority to do the
same with respect to casino gaming. To carry out this division, the
commission may adopt rules under Chapter 119. of the Revised Code,
including rules establishing fees and penalties related to the
operation of skill-based amusement machines.
(L)
To ensure the integrity of fantasy contests, the commission shall
have jurisdiction over all persons conducting or participating in the
conduct of a fantasy contest authorized by Chapter 3774. of the
Revised Code, including the authority to license, regulate,
investigate, and penalize those persons in a manner that is
consistent with the commission's authority to do the same with
respect to skill-based amusement machines. To carry out this
division, the commission may adopt rules under Chapter 119. of the
Revised Code, including rules establishing fees and penalties related
to the operation of fantasy contests.
(M)
All fees imposed pursuant to the rules adopted under divisions (K)
and (L) of this section shall be deposited into the casino control
commission fund.
Sec.
3772.031.
(A)(1)
The general assembly finds that the exclusion or ejection of certain
persons from casino facilities
,
from internet gambling,
and from sports gaming is necessary to effectuate the intents and
purposes of this chapter and
Chapter
Chapters
3771. and
3775.
of the Revised Code and to maintain strict and effective regulation
of casino gaming
,
internet gambling,
and sports gaming. The general assembly specifically finds that the
exclusion from sports gaming of persons who threaten violence or harm
against persons who are involved in sporting events, where the threat
is related to sports gaming, is necessary to effectuate the intent of
Chapter 3775. of the Revised Code and to protect the interests of
this state.
(2)
The commission, by rule, shall provide for a list of persons who are
to be excluded or ejected from a casino facility
,
a list of persons who are to be excluded from participating in the
play or operation of internet gambling,
and a list of persons who are to be excluded or ejected from a sports
gaming facility and from participating in the play or operation of
sports gaming in this state. Persons included on an exclusion list
shall be identified by name and physical description. The commission
shall publish the exclusion lists on its web site, and shall transmit
a copy of the exclusion lists periodically to casino operators
,
internet gambling operators,
and sports gaming proprietors, as applicable, as they are initially
issued and thereafter as they are revised from time to time.
(3)
A casino operator shall take steps necessary to ensure that all its
key employees and casino gaming employees are aware of and understand
the casino exclusion list and its function, and that all its key
employees and casino gaming employees are kept aware of the content
of the casino exclusion list as it is issued and thereafter revised
from time to time.
(4)
An
internet gambling operator shall take steps necessary to ensure that
its appropriate agents and employees are aware of and understand the
internet gambling exclusion list and its function, and that all its
appropriate agents and employees are kept aware of the content of the
internet gambling exclusion list as it is issued and thereafter
revised from time to time.
(5)
A
sports gaming proprietor shall take steps necessary to ensure that
its appropriate agents and employees are aware of and understand the
sports gaming exclusion list and its function, and that all its
appropriate agents and employees are kept aware of the content of the
sports gaming exclusion list as it is issued and thereafter revised
from time to time.
(B)
(B)(1)(a)
The casino exclusion list may include any person whose presence in a
casino facility is determined by the commission to pose a threat to
the interests of the state, to achieving the intents and purposes of
this chapter, or to the strict and effective regulation of casino
gaming.
The
(b)
The internet gambling exclusion list may include any person whose
participation in the play or operation of internet gambling in this
state is determined by the commission to pose a threat to the
interests of the state, to achieving the intents and purposes of
Chapter 3771. of the Revised Code, or to the strict and effective
regulation of internet gambling.
(c)
The
sports
gaming exclusion list may include any person who, before, during, or
after a sporting event, threatens violence or harm against any person
who is involved in the sporting event, where the threat is related to
sports gaming, or whose presence in a sports gaming facility or whose
participation in the play or operation of sports gaming in this state
is determined by the commission to pose a threat to the interests of
the state, to achieving the intents and purposes of Chapter 3775. of
the Revised Code, or to the strict and effective regulation of sports
gaming.
In
(2)
In
determining
whether to include a person on an exclusion list, the commission may
consider:
(1)
(a)
Any
prior conviction of a crime that is a felony under the laws of this
state, another state, or the United States, a crime involving moral
turpitude, or a violation of the gaming laws of this state, another
state, or the United States; and
(2)
(b)
A
violation, or a conspiracy to violate, any provision of this chapter
or Chapter
3771.
or
3775.
of the Revised Code, as applicable, that consists of:
(a)
(i)
A
failure to disclose an interest in a gaming facility
,
an internet gambling-related person or entity,
or a sports gaming-related person or entity for which the person must
obtain a license;
(b)
(ii)
Purposeful
evasion of taxes or fees;
(c)
(iii)
A
notorious or unsavory reputation that would adversely affect public
confidence and trust that casino gaming
,
internet gambling,
or sports gaming is free from criminal or corruptive elements; or
(d)
(iv)
A
violation of an order of the commission or of any other governmental
agency that warrants exclusion or ejection of the person from a
casino facility, from a sports gaming facility, or from participating
in the play or operation of
internet
gambling or
sports
gaming in this state.
(3)
(c)
If
the person has pending charges or indictments for a gaming or
gambling crime or a crime related to the integrity of gaming
operations in any state;
(4)
(d)
If
the person's conduct or reputation is such that the person's presence
within a casino facility
,
in the internet gambling industry,
or in the sports gaming industry in this state may call into question
the honesty and integrity of the casino gaming
,
internet gambling,
or sports gaming operations or interfere with the orderly conduct of
the casino gaming
,
internet gambling,
or sports gaming operations;
(5)
(e)
If
the person is a career or professional offender whose presence in a
casino facility
,
in the internet gambling industry,
or in the sports gaming industry in this state would be adverse to
the interest of licensed gaming in this state;
(6)
(f)
If
the person has a known relationship or connection with a career or
professional offender whose presence in a casino facility
,
in the internet gambling industry,
or in the sports gaming industry in this state would be adverse to
the interest of licensed gaming in this state;
(7)
(g)
If
the commission has suspended the person's gaming privileges;
(8)
(h)
If
the commission has revoked the person's licenses related to this
chapter or Chapter
3771.
or
3775.
of the Revised Code;
(9)
(i)
If
the commission determines that the person poses a threat to the
safety of patrons or employees of a casino facility or a sports
gaming facility;
(10)
(j)
If
the person has threatened violence or harm against a person who is
involved in the sporting event, where the threat was related to
sports gaming with respect to that sporting event;
(11)
(k)
If
the person has a history of conduct involving the disruption of
gaming operations within a casino facility
,
in the internet gambling industry,
or in the sports gaming industry in this state.
Race,
color, creed, national origin or ancestry, or sex are not grounds for
placing a person on an exclusion list.
(C)
The commission shall notify a person of the commission's intent to
include such person on one or
both
more
exclusion
lists. The notice shall be provided by personal service, by certified
mail to the person's last known address, by commercial carrier
utilizing a method of delivery that provides confirmation of
delivery, or, if service cannot be accomplished by personal service,
certified mail, or commercial carrier, by publication daily for two
weeks in a newspaper of general circulation within the county in
which the person resides and
,
if the commission intends to exclude the person from casino gaming or
sports gaming,
in a newspaper of general circulation within each county in which a
casino facility or sports gaming facility, as applicable, is located.
(D)(1)
Except as otherwise provided in this section, a person who receives
notice of intent to include the person on an exclusion list is
entitled, upon the person's request, to an adjudication hearing under
Chapter 119. of the Revised Code, in which the person may demonstrate
why the person should not be included on the exclusion list or lists.
The person shall request such an adjudication hearing not later than
thirty days after the person receives the notice by personal service,
certified mail, or commercial carrier, or not later than thirty days
after the last newspaper publication of the notice.
(2)
If the person does not request a hearing in accordance with division
(D)(1) of this section, the commission may, but is not required to,
conduct an adjudication hearing under Chapter 119. of the Revised
Code. The commission may reopen an adjudication under this section at
any time.
(3)
If the adjudication hearing, order, or any appeal thereof under
Chapter 119. of the Revised Code results in an order that the person
should not be included on the exclusion list or lists, the commission
shall publish a revised exclusion list that does not include the
person. The commission also shall notify casino operators
,
internet gambling operators,
or sports gaming proprietors, as applicable, that the person has been
removed from the exclusion list or lists. A casino operator shall
take all steps necessary to ensure its key employees and casino
gaming employees are made aware that the person has been removed from
the casino exclusion list.
An
internet gambling operator shall take all steps necessary to ensure
its appropriate agents and employees are made aware that the person
has been removed from the internet gambling exclusion list.
A
sports gaming proprietor shall take all steps necessary to ensure its
appropriate agents and employees are made aware that the person has
been removed from the sports gaming exclusion list.
(E)
This section does not apply to any voluntary exclusion list created
as part of a voluntary exclusion program under this chapter or
Chapter
3771.
or
3775.
of the Revised Code.
Sec.
3772.04.
(A)(1)
If the commission concludes that an applicant, licensee, or other
person subject to the commission's jurisdiction under this chapter
should be fined or penalized, or that a license required by this
chapter or Chapter
3771.
or
3775.
of the Revised Code should be limited, conditioned, restricted,
suspended, revoked, denied, or not renewed, the commission may, and
if so requested by the licensee, applicant, or other person, shall,
conduct a hearing in an adjudication under Chapter 119. of the
Revised Code. After notice and opportunity for a hearing, the
commission may fine or penalize the applicant, licensee, or other
person or limit, condition, restrict, suspend, revoke, deny, or not
renew a license under rules adopted by the commission. The commission
may reopen an adjudication under this section at any time.
(2)
The commission shall appoint a hearing examiner to conduct the
hearing in the adjudication. A party to the adjudication may file
written objections to the hearing examiner's report and
recommendations not later than the thirtieth day after they are
served upon the party or the party's attorney or other representative
of record. The commission shall not take up the hearing examiner's
report and recommendations earlier than the thirtieth day after the
hearing examiner's report and recommendations were submitted to the
commission.
(3)
If the commission finds that a person fails or has failed to meet any
requirement under this chapter or Chapter
3771.
or
3775.
of the Revised Code or a rule adopted thereunder, or violates or has
violated this chapter or Chapter
3771.
or
3775.
of the Revised Code or a rule adopted thereunder, the commission may
issue an order:
(a)
Limiting, conditioning, restricting, suspending, revoking, denying,
or not renewing, a license issued under this chapter or Chapter
3771.
or
3775.
of the Revised Code;
(b)
Requiring a casino facility to exclude a licensee from the casino
facility or requiring a casino facility not to pay to the licensee
any remuneration for services or any share of profits, income, or
accruals on the licensee's investment in the casino facility; or
(c)
Fining a licensee or other person according to the penalties adopted
by the commission.
(4)
An order may be judicially reviewed under section 119.12 of the
Revised Code.
(B)
Without in any manner limiting the authority of the commission to
impose the level and type of discipline the commission considers
appropriate, the commission may take into consideration the
following:
(1)
If the licensee knew or reasonably should have known that the action
complained of was a violation of any law, rule, or condition on the
licensee's license;
(2)
If the licensee has previously been disciplined by the commission;
(3)
If the licensee has previously been subject to discipline by the
commission concerning the violation of any law, rule, or condition of
the licensee's license;
(4)
If the licensee reasonably relied upon professional advice from a
lawyer, doctor, accountant, or other recognized professional that was
relevant to the action resulting in the violation;
(5)
If the licensee or the licensee's employer had a reasonably
constituted and functioning compliance program;
(6)
If the imposition of a condition requiring the licensee to establish
and implement a written self-enforcement and compliance program would
assist in ensuring the licensee's future compliance with all
statutes, rules, and conditions of the license;
(7)
If the licensee realized a pecuniary gain from the violation;
(8)
If the amount of any fine or other penalty imposed would result in
disgorgement of any gains unlawfully realized by the licensee;
(9)
If the violation was caused by an officer or employee of the
licensee, the level of authority of the individual who caused the
violation;
(10)
If the individual who caused the violation acted within the scope of
the individual's authority as granted by the licensee;
(11)
The adequacy of any training programs offered by the licensee or the
licensee's employer that were relevant to the activity that resulted
in the violation;
(12)
If the licensee's action substantially deviated from industry
standards and customs;
(13)
The extent to which the licensee cooperated with the commission
during the investigation of the violation;
(14)
If the licensee has initiated remedial measures to prevent similar
violations;
(15)
The magnitude of penalties imposed on other licensees for similar
violations;
(16)
The proportionality of the penalty in relation to the misconduct;
(17)
The extent to which the amount of any fine imposed would punish the
licensee for the conduct and deter future violations;
(18)
Any mitigating factors offered by the licensee; and
(19)
Any other factors the commission considers relevant.
(C)
For the purpose of conducting any study or investigation, the
commission may direct that public hearings be held at a time and
place, prescribed by the commission, in accordance with section
121.22 of the Revised Code. The commission shall give notice of all
public hearings in such manner as will give actual notice to all
interested parties.
(D)(1)
For the purpose of conducting the hearing in an adjudication under
division (A) of this section, or in the discharge of any duties
imposed by this chapter or Chapter
3771.
or
3775.
of the Revised Code, the commission may require that testimony be
given under oath and administer such oath, issue subpoenas compelling
the attendance of witnesses and the production of any papers, books,
and accounts, directed to the sheriffs of the counties where such
witnesses or papers, books, and accounts are found and cause the
deposition of any witness. The subpoenas shall be served and returned
in the same manner as subpoenas in criminal cases are served and
returned. The fees of sheriffs shall be the same as those allowed by
the court of common pleas in criminal cases.
(2)
In the event of the refusal of any person without good cause to
comply with the terms of a subpoena issued by the commission or
refusal to testify on matters about which the person may lawfully be
questioned, the prosecuting attorney of the county in which such
person resides, upon the petition of the commission, may bring a
proceeding for contempt against such person in the court of common
pleas of that county.
(3)
Witnesses shall be paid the fees and mileage provided for in section
119.094 of the Revised Code.
(4)
All fees and mileage expenses incurred at the request of a party
shall be paid in advance by the party.
(E)
When conducting a public hearing, the commission shall not limit the
number of speakers who may testify. However, the commission may set
reasonable time limits on the length of an individual's testimony or
the total amount of time allotted to proponents and opponents of an
issue before the commission.
(F)
The commission may rely, in whole or in part, upon investigations,
conclusions, or findings of other casino gaming or sports gaming
commissions, as applicable, or other government regulatory bodies in
connection with licensing, investigations, or other matters relating
to an applicant or licensee under this chapter.
(G)
Notwithstanding anything to the contrary in this chapter or Chapter
3771.
or
3775.
of the Revised Code, and except with respect to a license issued
under this chapter to a casino operator, management company, or
holding company, the executive director may issue an emergency order
for the suspension, limitation, or conditioning of any license,
registration, approval, or certificate issued, approved, granted, or
otherwise authorized by the commission under Chapter
3771.,
3772.
,
or 3775. of the Revised Code or the rules adopted thereunder,
requiring the inclusion of persons on the casino exclusion list
,
internet gambling exclusion list,
or sports gaming exclusion list provided for under section 3772.031
of the Revised Code or Chapter
3771.
or
3775.
of the Revised Code and the rules adopted thereunder, and requiring a
casino facility not to pay a licensee, registrant, or approved or
certified person any remuneration for services or any share of
profits, income, or accruals on that person's investment in the
casino facility.
(1)
An emergency order may be issued when the executive director finds
either of the following:
(a)
A licensee, registrant, or approved or certified person has been
charged with a violation of any of the criminal laws of this state,
another state, or the federal government;
(b)
Such an action is necessary to prevent a violation of this chapter or
Chapter
3771.
or
3775.
of the Revised Code or a rule adopted thereunder.
(2)
An emergency order issued under division (G) of this section shall
state the reasons for the commission's action, cite the law or rule
directly involved, and state that the party will be afforded a
hearing if the party requests it within thirty days after the time of
mailing or personal delivery of the order.
(3)(a)
Not later than the next business day after the issuance of the
emergency order, the order shall be sent by registered or certified
mail, return receipt requested, or by commercial carrier utilizing
any form of delivery requiring a signed receipt, to the party at the
party's last known mailing address appearing in the commission's
records or personally delivered at any time to the party by an
employee or agent of the commission.
(b)
A copy of the order shall be mailed or an electronic copy provided to
the attorney or other representative of record representing the
party.
(c)
If the order sent by registered or certified mail or by commercial
carrier is returned because the party fails to claim the order, the
commission shall send the order by ordinary mail to the party at the
party's last known address and shall obtain a certificate of mailing.
Service by ordinary mail is complete when the certificate of mailing
is obtained unless the order is returned showing failure of delivery.
(d)
If the order sent by commercial carrier or registered, certified, or
ordinary mail is returned for failure of delivery, the commission
shall either make personal delivery of the order by an employee or
agent of the commission or cause a summary of the substantive
provisions of the order to be published once a week for three
consecutive weeks in a newspaper of general circulation in the county
where the last known address of the party is located.
(i)
Failure of delivery occurs only when a mailed order is returned by
the postal authorities or commercial carrier marked undeliverable,
address or addressee unknown, or forwarding address unknown or
expired.
(ii)
When service is completed by publication, a proof of publication
affidavit, with the first publication of the summary set forth in the
affidavit, shall be mailed by ordinary mail to the party at the
party's last known address and the order shall be deemed received as
of the date of the last publication.
(e)
Refusal of delivery of the order sent by mail or personally delivered
to the party is not failure of delivery and service is deemed to be
complete.
(4)
The emergency order shall be effective immediately upon service of
the order on the party. The emergency order shall remain effective
until further order of the executive director or the commission.
(5)
The commission may, and if so requested by the person affected by the
emergency order shall, promptly conduct a hearing in an adjudication
under Chapter 119. of the Revised Code.
Sec.
3772.062.
(A)(1)
The executive director of the commission shall enter into an
agreement with the department of mental health and addiction services
under which the department provides a program of gambling and
addiction services, including services to alleviate
problem
internet gambling and
problem
sports gaming, on behalf of the commission.
(2)
The commission shall use the moneys in the problem
sports
gaming
gambling
fund
established under section 5753.031 of the Revised Code for the
purpose of paying the costs of program services to alleviate problem
sports
gaming
gambling
in
this state.
(B)
The executive director of the commission, in conjunction with the
department of mental health and addiction services and the state
lottery commission, shall establish, operate, and publicize an
in-state, toll-free telephone number Ohio residents may call to
obtain basic information about problem gambling, the gambling
addiction services available to problem gamblers, and how a problem
gambler may obtain help. The telephone number shall be staffed
twenty-four hours per day, seven days a week, to respond to inquiries
and provide that information. The costs of establishing, operating,
and publicizing the telephone number shall be paid for with money in
the problem casino gambling and addictions fund.
Sec.
5747.02.
(A)
For the purpose of providing revenue for the support of schools and
local government functions, to provide relief to property taxpayers,
to provide revenue for the general revenue fund, and to meet the
expenses of administering the tax levied by this chapter, there is
hereby levied on every individual, trust, and estate residing in or
earning or receiving income in this state, on every individual,
trust, and estate earning or receiving lottery winnings, prizes, or
awards pursuant to Chapter 3770. of the Revised Code, on every
individual, trust, and estate earning or receiving winnings on casino
gaming, internet gambling,
or sports gaming, and on every individual, trust, and estate
otherwise having nexus with or in this state under the Constitution
of the United States, an annual tax measured as prescribed in
divisions (A)(1) to (4) of this section.
(1)
In the case of trusts, the tax imposed by this section shall be
measured by modified Ohio taxable income under division (D) of this
section and levied in the same amount as the tax is imposed on
estates as prescribed in division (A)(2) of this section.
(2)
In the case of estates, the tax imposed by this section shall be
measured by Ohio taxable income. The tax shall be levied at the rate
of 1.38462% for the first twenty-six thousand fifty dollars of such
income and, for income in excess of that amount, the tax shall be
levied at the same rates prescribed in division (A)(3) of this
section for individuals.
(3)
In the case of individuals, the tax imposed by this section on income
other than taxable business income shall be measured by Ohio adjusted
gross income, less taxable business income and less an exemption for
the taxpayer, the taxpayer's spouse, and each dependent as provided
in section 5747.025 of the Revised Code. If the balance thus obtained
is equal to or less than twenty-six thousand fifty dollars, no tax
shall be imposed on that balance. If the balance thus obtained is
greater than twenty-six thousand fifty dollars, the tax is hereby
levied as follows:
(a)
For taxable years beginning in 2023:
1
2
A
OHIO
ADJUSTED GROSS INCOME LESS TAXABLE BUSINESS INCOME AND EXEMPTIONS
(INDIVIDUALS) OR MODIFIED OHIO TAXABLE INCOME (TRUSTS) OR OHIO
TAXABLE INCOME (ESTATES)
TAX
B
More
than $26,050 but not more than $100,000
$360.69
plus 2.75% of the amount in excess of $26,050
C
More
than $100,000 but not more than $115,300
$2,394.32
plus 3.688% of the amount in excess of $100,000
D
More
than $115,300
$2,958.58
plus 3.75% of the amount in excess of $115,300
(b)
For taxable years beginning in 2024 and thereafter:
1
2
A
OHIO
ADJUSTED GROSS INCOME LESS TAXABLE BUSINESS INCOME AND EXEMPTIONS
(INDIVIDUALS) OR MODIFIED OHIO TAXABLE INCOME (TRUSTS) OR OHIO
TAXABLE INCOME (ESTATES)
TAX
B
More
than $26,050 but not more than $100,000
$360.69
plus 2.75% of the amount in excess of $26,050
C
More
than $100,000
$2,394.32
plus 3.5% of the amount in excess of $100,000
(4)(a)
In the case of individuals, the tax imposed by this section on
taxable business income shall equal three per cent of the result
obtained by subtracting any amount allowed under division (A)(4)(b)
of this section from the individual's taxable business income.
(b)
If the exemptions allowed to an individual under division (A)(3) of
this section exceed the taxpayer's Ohio adjusted gross income less
taxable business income, the excess shall be deducted from taxable
business income before computing the tax under division (A)(4)(a) of
this section.
(5)
Except as otherwise provided in this division, in August of each
year, the tax commissioner shall make a new adjustment to the income
amounts prescribed in divisions (A)(2) and (3) of this section by
multiplying the percentage increase in the gross domestic product
deflator computed that year under section 5747.025 of the Revised
Code by each of the income amounts resulting from the adjustment
under this division in the preceding year, adding the resulting
product to the corresponding income amount resulting from the
adjustment in the preceding year, and rounding the resulting sum to
the nearest multiple of fifty dollars. The tax commissioner also
shall recompute each of the tax dollar amounts to the extent
necessary to reflect the new adjustment of the income amounts. To
recompute the tax dollar amount corresponding to the lowest tax rate
in division (A)(3) of this section, the commissioner shall multiply
the tax rate prescribed in division (A)(2) of this section by the
income amount specified in that division and as adjusted according to
this paragraph. The rates of taxation shall not be adjusted.
The
adjusted amounts apply to taxable years beginning in the calendar
year in which the adjustments are made and to taxable years beginning
in each ensuing calendar year until a calendar year in which a new
adjustment is made pursuant to this division. The tax commissioner
shall not make a new adjustment in any year in which the amount
resulting from the adjustment would be less than the amount resulting
from the adjustment in the preceding year.
(B)
If the director of budget and management makes a certification to the
tax commissioner under division (B) of section 131.44 of the Revised
Code, the amount of tax as determined under divisions (A)(1) to (3)
of this section shall be reduced by the percentage prescribed in that
certification for taxable years beginning in the calendar year in
which that certification is made.
(C)(1)
The tax imposed by this section on a trust shall be computed by
multiplying the Ohio modified taxable income of the trust by the
rates prescribed by division (A) of this section.
(2)
A resident trust may claim a credit against the tax computed under
division (C) of this section equal to the lesser of (a) the tax paid
to another state or the District of Columbia on the resident trust's
modified nonbusiness income, other than the portion of the resident
trust's nonbusiness income that is qualifying investment income as
defined in section 5747.012 of the Revised Code, or (b) the effective
tax rate, based on modified Ohio taxable income, multiplied by the
resident trust's modified nonbusiness income other than the portion
of the resident trust's nonbusiness income that is qualifying
investment income. The credit applies before any other applicable
credits.
(3)
Any credit authorized against the tax imposed by this section applies
to a trust subject to division (C) of this section only if the trust
otherwise qualifies for the credit. To the extent that the trust
distributes income for the taxable year for which a credit is
available to the trust, the credit shall be shared by the trust and
its beneficiaries. The tax commissioner and the trust shall be guided
by applicable regulations of the United States treasury regarding the
sharing of credits.
(D)
For the purposes of this section, "trust" means any trust
described in Subchapter J of Chapter 1 of the Internal Revenue Code,
excluding trusts that are not irrevocable as defined in division
(I)(3)(b) of section 5747.01 of the Revised Code and that have no
modified Ohio taxable income for the taxable year, charitable
remainder trusts, qualified funeral trusts and preneed funeral
contract trusts established pursuant to sections 4717.31 to 4717.38
of the Revised Code that are not qualified funeral trusts, endowment
and perpetual care trusts, qualified settlement trusts and funds,
designated settlement trusts and funds, and trusts exempted from
taxation under section 501(a) of the Internal Revenue Code.
(E)
Nothing in division (A)(3) of this section shall prohibit an
individual with an Ohio adjusted gross income, less taxable business
income and exemptions, of twenty-six thousand fifty dollars or less
from filing a return under this chapter to receive a refund of taxes
withheld or to claim any refundable credit allowed under this
chapter.
Sec.
5747.063.
The
requirements imposed under this section are in addition to the
municipal income tax withholding requirements under section 718.031
of the Revised Code.
(A)
As
used in this section
,
:
(1)
"Gaming operator" or "operator" means a casino
operator, internet gambling operator, or sports gaming proprietor.
(2)
"Casino operator" has the same meaning as in section
3772.01 of the Revised Code,
"sports gaming proprietor" and "sports gaming
facility" have the same meanings as in section 3775.01 of the
Revised Code
,
and "internet gambling" and "internet gambling
operator" have the same meanings as in section 3771.01 of the
Revised Code
.
(A)(1)
(B)(1)
If
a person's winnings from casino gaming
,
internet gambling,
or
from
sports
gaming are an amount for which reporting to the internal revenue
service of the amount is required by section 6041 of the Internal
Revenue Code, as amended, a
casino
gaming
operator
or sports gaming proprietor
shall
deduct and withhold Ohio income tax from the person's winnings at a
rate of four per cent of the amount won. A person's amount of
winnings from casino gaming shall be determined each time the person
exchanges amounts won in tokens, chips, casino credit, or other
prepaid representations of value for cash or a cash equivalent. The
casino
operator
or
sports gaming proprietor
shall
issue, to a person from whose winnings an amount has been deducted
and withheld, a receipt for the amount deducted and withheld, and
also shall obtain from the person additional information that will be
necessary for the
casino
operator
or
sports gaming proprietor
to
prepare the returns required by this section.
(2)
If a person's winnings from casino gaming
,
internet gambling,
or sports gaming require reporting to the internal revenue service
under division
(A)(1)
(B)(1)
of
this section, the
casino
gaming
operator
or
sports gaming proprietor
also
shall require the person to state in writing, under penalty of
falsification, whether the person is in default under a support
order.
(B)
(C)
Amounts
deducted and withheld by a
casino
gaming
operator
or
sports gaming proprietor
are
held in trust for the benefit of the state.
(1)
On or before the tenth day of each month, the
casino
gaming
operator
shall file a return electronically with the tax commissioner
identifying the persons from whose winnings amounts were deducted and
withheld, the amount of each such deduction and withholding during
the preceding calendar month, the amount of the winnings from which
each such amount was withheld, the type of casino gaming
,
internet gambling,
or sports gaming that resulted in such winnings, and any other
information required by the tax commissioner. With the return, the
casino
operator
or
sports gaming proprietor
shall
remit electronically to the commissioner all the amounts deducted and
withheld during the preceding month.
(2)(a)
A
casino
gaming
operator
or
sports gaming proprietor
shall
maintain a record of each written statement provided under division
(A)(2)
(B)(2)
of
this section in which a person admits to being in default under a
support order. The
casino
operator
or
sports gaming proprietor
shall
make these records available to the director of job and family
services upon request.
(b)
A
casino
gaming
operator
or
sports gaming proprietor
shall
maintain copies of receipts issued under division
(A)(1)
(B)(1)
of
this section and of written statements provided under division
(A)(2)
(B)(2)
of
this section and shall make these copies available to the tax
commissioner upon request.
(c)
A
casino
gaming
operator
or
sports gaming proprietor
shall
maintain the information described in divisions
(B)(2)(a)
(C)(2)(a)
and
(b) of this section in accordance with section 5747.17 of the Revised
Code and any rules adopted pursuant thereto.
(3)
Annually, on or before the thirty-first day of January, a
casino
gaming
operator
or
sports gaming proprietor
shall
file an annual return electronically with the tax commissioner
indicating the total amount deducted and withheld during the
preceding calendar year. The
casino
operator
or
sports gaming proprietor
shall
remit electronically with the annual return any amount that was
deducted and withheld and that was not previously remitted. If the
identity of a person and the amount deducted and withheld with
respect to that person were omitted on a monthly return, that
information shall be indicated on the annual return.
(4)(a)
A
casino
gaming
operator
or
sports gaming proprietor
who
fails to file a return and remit the amounts deducted and withheld is
personally liable for the amount deducted and withheld and not
remitted. The commissioner may impose a penalty up to one thousand
dollars if a return is filed late, if amounts deducted and withheld
are remitted late, if a return is not filed, or if amounts deducted
and withheld are not remitted. Interest accrues on past due amounts
deducted and withheld at the rate prescribed in section 5703.47 of
the Revised Code. The commissioner may collect past due amounts
deducted and withheld and penalties and interest thereon by
assessment under section 5747.13 of the Revised Code as if they were
income taxes collected by an employer.
(b)
If a
casino
gaming
operator
or
sports gaming proprietor
sells
the casino facility or sports gaming facility, or otherwise quits the
casino
gaming, internet gambling,
or sports gaming business, the amounts deducted and withheld and any
penalties and interest thereon are immediately due and payable. The
successor shall withhold an amount of the purchase money that is
sufficient to cover the amounts deducted and withheld and penalties
and interest thereon until the predecessor
casino
operator
or
sports gaming proprietor
produces
either a receipt from the commissioner showing that the amounts
deducted and withheld and penalties and interest thereon have been
paid or a certificate from the commissioner indicating that no
amounts deducted and withheld or penalties and interest thereon are
due. If the successor fails to withhold purchase money, the successor
is personally liable for payment of the amounts deducted and withheld
and penalties and interest thereon, up to the amount of the purchase
money.
(C)(1)
(D)(1)
Annually,
on or before the thirty-first day of January, a
casino
gaming
operator
or
sports gaming proprietor
shall
issue an information return to each person with respect to whom an
amount has been deducted and withheld during the preceding calendar
year. The information return shall show the total amount deducted
from the person's winnings by the
casino
operator
or
sports gaming proprietor
during
the preceding calendar year.
(2)
Annually, on or before the thirty-first day of January, a
casino
gaming
operator
or
sports gaming proprietor
shall
provide to the commissioner a copy of each information return issued
under division
(C)(1)
(D)(1)
of
this section for the preceding calendar year. The commissioner may
require that the copies be transmitted electronically.
(D)
(E)
Amounts
deducted and withheld shall be allowed as a credit against payment of
the tax imposed by section 5747.02 of the Revised Code and shall be
treated as taxes paid for purposes of section 5747.09 of the Revised
Code. This division applies only to the person for whom the amount is
deducted and withheld.
(E)
(F)
The
failure of a
casino
gaming
operator
or
sports gaming proprietor
to
deduct and withhold the required amount from a person's winnings does
not relieve the person from liability for the tax imposed by section
5747.02 of the Revised Code with respect to those winnings. And
compliance with this section does not relieve
a
casino
an
operator
or
sports gaming proprietor
or
a person who has winnings from casino gaming
,
internet gambling,
or sports gaming from compliance with relevant provisions of federal
tax laws.
(F)
(G)
The
commissioner shall prescribe the form of the receipt and returns
required by this section. The director of job and family services
shall prescribe the form of the statement required by this section.
(G)
(H)
The
commissioner may adopt rules that are necessary to administer this
section.
Sec.
5747.20.
This
section applies solely for the purposes of computing the credit
allowed under division (A) of section 5747.05 of the Revised Code and
computing income taxable in this state under division (D) of section
5747.08 of the Revised Code.
All
items of nonbusiness income or deduction shall be allocated in this
state as follows:
(A)
All items of nonbusiness income or deduction taken into account in
the computation of adjusted gross income for the taxable year by a
resident shall be allocated to this state.
(B)
All items of nonbusiness income or deduction taken into account in
the computation of adjusted gross income for the taxable year by a
nonresident shall be allocated to this state as follows:
(1)
All items of compensation paid to an individual for personal services
performed in this state who was a nonresident at the time of payment
and all items of deduction directly allocated thereto shall be
allocated to this state.
(2)
All gains or losses from the sale of real property, tangible personal
property, or intangible property shall be allocated as follows:
(a)
Capital gains or losses from the sale or other transfer of real
property are allocable to this state if the property is located
physically in this state.
(b)
Capital gains or losses from the sale or other transfer of tangible
personal property are allocable to this state if, at the time of such
sale or other transfer, the property had its physical location in
this state.
(c)
Capital gains or losses from the sale or other transfer of intangible
personal property are allocable to this state if the taxpayer's
domicile was in this state at the time of such sale or other
transfer.
(3)
All rents and royalties of real or tangible personal property shall
be allocated to this state as follows:
(a)
Rents and royalties derived from real property are allocable to this
state if the property is physically located in this state.
(b)
Rents and royalties derived from tangible personal property are
allocable to this state to the extent that such property is utilized
in this state.
The
extent of utilization of tangible personal property in a state is
determined by multiplying the rents or royalties derived from such
property by a fraction, the numerator of which is the number of days
of physical location of the property in this state during the rental
or royalty period in the taxable year and the denominator of which is
the number of days of physical location of the property everywhere
during all rental or royalty periods in the taxable year. If the
physical location of the property during the rental or royalty period
is unknown or unascertainable by the nonresident, tangible personal
property is utilized in the state in which the property was located
at the time the rental or royalty payor obtained possession.
(4)
All patent and copyright royalties shall be allocated to this state
to the extent the patent or copyright was utilized by the payor in
this state.
A
patent is utilized in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the
state, or to the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties does not permit
allocation to states or if the accounting procedures do not reflect
states of utilization, the patent is utilized in this state if the
taxpayer's domicile was in this state at the time such royalties were
paid or accrued.
A
copyright is utilized in a state to the extent that printing or other
publication originates in the state. If the basis of receipts from
copyright royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the
copyright is utilized in this state if the taxpayer's domicile was in
this state at the time such royalties were paid or accrued.
(5)(a)
All lottery prize awards paid by the state lottery commission
pursuant to Chapter 3770. of the Revised Code shall be allocated to
this state.
(b)
All earnings, profit, income, and gain from the sale, exchange, or
other disposition of lottery prize awards paid or to be paid to any
person by the state lottery commission pursuant to Chapter 3770. of
the Revised Code shall be allocated to this state.
(c)
All earnings, profit, income, and gain from the direct or indirect
ownership of lottery prize awards paid or to be paid to any person by
the state lottery commission pursuant to Chapter 3770. of the Revised
Code shall be allocated to this state.
(d)
All earnings, profit, income, and gain from the direct or indirect
interest in any right in or to any lottery prize awards paid or to be
paid to any person by the state lottery commission pursuant to
Chapter 3770. of the Revised Code shall be allocated to this state.
(6)
Any item of income or deduction which has been taken into account in
the computation of adjusted gross income for the taxable year by a
nonresident and which is not otherwise specifically allocated or
apportioned pursuant to sections 5747.20 to 5747.23 of the Revised
Code, including, without limitation, interest, dividends and
distributions, items of income taken into account under the
provisions of sections 401 to 425 of the Internal Revenue Code, and
benefit payments received by a beneficiary of a supplemental
unemployment trust which is referred to in section 501(c)(17) of the
Internal Revenue Code, shall not be allocated to this state unless
the taxpayer's domicile was in this state at the time such income was
paid or accrued.
(7)
All winnings from casino gaming
,
internet gambling,
or sports gaming conducted in this state shall be allocated to the
state.
(C)
If an individual is a resident for part of the taxable year and a
nonresident for the remainder of the taxable year, all items of
nonbusiness income or deduction shall be allocated under division (A)
of this section for the part of the taxable year that the individual
is a resident and under division (B) of this section for the part of
the taxable year that the individual is a nonresident.
Sec.
5751.01.
As
used in this chapter:
(A)
"Person" means, but is not limited to, individuals,
combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies,
business trusts, estates, partnerships, limited liability
partnerships, limited liability companies, associations, joint
ventures, clubs, societies, for-profit corporations, S corporations,
qualified subchapter S subsidiaries, qualified subchapter S trusts,
trusts, entities that are disregarded for federal income tax
purposes, and any other entities.
(B)
"Consolidated elected taxpayer" means a group of two or
more persons treated as a single taxpayer for purposes of this
chapter as the result of an election made under section 5751.011 of
the Revised Code.
(C)
"Combined taxpayer" means a group of two or more persons
treated as a single taxpayer for purposes of this chapter under
section 5751.012 of the Revised Code.
(D)
"Taxpayer" means any person, or any group of persons in the
case of a consolidated elected taxpayer or combined taxpayer treated
as one taxpayer, required to register or pay tax under this chapter.
"Taxpayer" does not include excluded persons.
(E)
"Excluded person" means any of the following:
(1)
Any person with not more than one hundred fifty thousand dollars of
taxable gross receipts during the calendar year. Division (E)(1) of
this section does not apply to a person that is a member of a
consolidated elected taxpayer.
(2)
A public utility that paid the excise tax imposed by section 5727.24
or 5727.30 of the Revised Code based on one or more measurement
periods that include the entire tax period under this chapter, except
in the following circumstances:
(a)
A public utility that is a combined company is a taxpayer with regard
to the following gross receipts:
(i)
Taxable gross receipts directly attributed to a public utility
activity, but not directly attributed to an activity that is subject
to the excise tax imposed by section 5727.24 or 5727.30 of the
Revised Code;
(ii)
Taxable gross receipts that cannot be directly attributed to any
activity, multiplied by a fraction whose numerator is the taxable
gross receipts described in division (E)(2)(a)(i) of this section and
whose denominator is the total taxable gross receipts that can be
directly attributed to any activity;
(iii)
Except for any differences resulting from the use of an accrual basis
method of accounting for purposes of determining gross receipts under
this chapter and the use of the cash basis method of accounting for
purposes of determining gross receipts under section 5727.24 of the
Revised Code, the gross receipts directly attributed to the activity
of a natural gas company shall be determined in a manner consistent
with division (D) of section 5727.03 of the Revised Code.
(b)
A heating company that became exempt from the excise tax imposed by
section 5727.30 of the Revised Code on May 1, 2023, shall not be an
excluded person for tax periods beginning on or after July 1, 2023.
As
used in division (E)(2) of this section, "combined company"
and "public utility" have the same meanings as in section
5727.01 of the Revised Code.
(3)
A financial institution, as defined in section 5726.01 of the Revised
Code, that paid the tax imposed by section 5726.02 of the Revised
Code based on one or more taxable years that include the entire tax
period under this chapter;
(4)
A person directly or indirectly owned by one or more financial
institutions, as defined in section 5726.01 of the Revised Code, that
paid the tax imposed by section 5726.02 of the Revised Code based on
one or more taxable years that include the entire tax period under
this chapter.
For
the purposes of division (E)(4) of this section, a person owns
another person under the following circumstances:
(a)
In the case of corporations issuing capital stock, one corporation
owns another corporation if it owns fifty per cent or more of the
other corporation's capital stock with current voting rights;
(b)
In the case of a limited liability company, one person owns the
company if that person's membership interest, as defined in section
1706.01 of the Revised Code, is fifty per cent or more of the
combined membership interests of all persons owning such interests in
the company;
(c)
In the case of a partnership, trust, or other unincorporated business
organization other than a limited liability company, one person owns
the organization if, under the articles of organization or other
instrument governing the affairs of the organization, that person has
a beneficial interest in the organization's profits, surpluses,
losses, or distributions of fifty per cent or more of the combined
beneficial interests of all persons having such an interest in the
organization.
(5)
A domestic insurance company or foreign insurance company, as defined
in section 5725.01 of the Revised Code, that paid the insurance
company premiums tax imposed by section 5725.18 or Chapter 5729. of
the Revised Code, or an unauthorized insurance company whose gross
premiums are subject to tax under section 3905.36 of the Revised Code
based on one or more measurement periods that include the entire tax
period under this chapter;
(6)
A person that solely facilitates or services one or more
securitizations of phase-in-recovery property pursuant to a final
financing order as those terms are defined in section 4928.23 of the
Revised Code. For purposes of this division, "securitization"
means transferring one or more assets to one or more persons and then
issuing securities backed by the right to receive payment from the
asset or assets so transferred.
(7)
Except as otherwise provided in this division, a pre-income tax trust
as defined in section 5747.01 of the Revised Code and any
pass-through entity of which such pre-income tax trust owns or
controls, directly, indirectly, or constructively through related
interests, more than five per cent of the ownership or equity
interests. If the pre-income tax trust has made a qualifying
pre-income tax trust election under division (EE) of section 5747.01
of the Revised Code, then the trust and the pass-through entities of
which it owns or controls, directly, indirectly, or constructively
through related interests, more than five per cent of the ownership
or equity interests, shall not be excluded persons for purposes of
the tax imposed under section 5751.02 of the Revised Code.
(8)
Nonprofit organizations or the state and its agencies,
instrumentalities, or political subdivisions.
(F)
Except as otherwise provided in divisions (F)(2), (3), and (4) of
this section, "gross receipts" means the total amount
realized by a person, without deduction for the cost of goods sold or
other expenses incurred, that contributes to the production of gross
income of the person, including the fair market value of any property
and any services received, and any debt transferred or forgiven as
consideration.
(1)
The following are examples of gross receipts:
(a)
Amounts realized from the sale, exchange, or other disposition of the
taxpayer's property to or with another;
(b)
Amounts realized from the taxpayer's performance of services for
another;
(c)
Amounts realized from another's use or possession of the taxpayer's
property or capital;
(d)
Any combination of the foregoing amounts.
(2)
"Gross receipts" excludes the following amounts:
(a)
Interest income except interest on credit sales;
(b)
Dividends and distributions from corporations, and distributive or
proportionate shares of receipts and income from a pass-through
entity as defined under section 5733.04 of the Revised Code;
(c)
Receipts from the sale, exchange, or other disposition of an asset
described in section 1221 or 1231 of the Internal Revenue Code,
without regard to the length of time the person held the asset.
Notwithstanding section 1221 of the Internal Revenue Code, receipts
from hedging transactions also are excluded to the extent the
transactions are entered into primarily to protect a financial
position, such as managing the risk of exposure to (i) foreign
currency fluctuations that affect assets, liabilities, profits,
losses, equity, or investments in foreign operations; (ii) interest
rate fluctuations; or (iii) commodity price fluctuations. As used in
division (F)(2)(c) of this section, "hedging transaction"
has the same meaning as used in section 1221 of the Internal Revenue
Code and also includes transactions accorded hedge accounting
treatment under statement of financial accounting standards number
133 of the financial accounting standards board. For the purposes of
division (F)(2)(c) of this section, the actual transfer of title of
real or tangible personal property to another entity is not a hedging
transaction.
(d)
Proceeds received attributable to the repayment, maturity, or
redemption of the principal of a loan, bond, mutual fund, certificate
of deposit, or marketable instrument;
(e)
The principal amount received under a repurchase agreement or on
account of any transaction properly characterized as a loan to the
person;
(f)
Contributions received by a trust, plan, or other arrangement, any of
which is described in section 501(a) of the Internal Revenue Code, or
to which Title 26, Subtitle A, Chapter 1, Subchapter (D) of the
Internal Revenue Code applies;
(g)
Compensation, whether current or deferred, and whether in cash or in
kind, received or to be received by an employee, former employee, or
the employee's legal successor for services rendered to or for an
employer, including reimbursements received by or for an individual
for medical or education expenses, health insurance premiums, or
employee expenses, or on account of a dependent care spending
account, legal services plan, any cafeteria plan described in section
125 of the Internal Revenue Code, or any similar employee
reimbursement;
(h)
Proceeds received from the issuance of the taxpayer's own stock,
options, warrants, puts, or calls, or from the sale of the taxpayer's
treasury stock;
(i)
Proceeds received on the account of payments from insurance policies,
except those proceeds received for the loss of business revenue;
(j)
Gifts or charitable contributions received; membership dues received
by trade, professional, homeowners', or condominium associations;
payments received for educational courses, meetings, meals, or
similar payments to a trade, professional, or other similar
association; and fundraising receipts received by any person when any
excess receipts are donated or used exclusively for charitable
purposes;
(k)
Damages received as the result of litigation in excess of amounts
that, if received without litigation, would be gross receipts;
(l)
Property, money, and other amounts received or acquired by an agent
on behalf of another in excess of the agent's commission, fee, or
other remuneration;
(m)
Tax refunds, other tax benefit recoveries, and reimbursements for the
tax imposed under this chapter made by entities that are part of the
same combined taxpayer or consolidated elected taxpayer group, and
reimbursements made by entities that are not members of a combined
taxpayer or consolidated elected taxpayer group that are required to
be made for economic parity among multiple owners of an entity whose
tax obligation under this chapter is required to be reported and paid
entirely by one owner, pursuant to the requirements of sections
5751.011 and 5751.012 of the Revised Code;
(n)
Pension reversions;
(o)
Contributions to capital;
(p)
Sales or use taxes collected as a vendor or an out-of-state seller on
behalf of the taxing jurisdiction from a consumer or other taxes the
taxpayer is required by law to collect directly from a purchaser and
remit to a local, state, or federal tax authority;
(q)
In the case of receipts from the sale of cigarettes, tobacco
products, or vapor products by a wholesale dealer, retail dealer,
distributor, manufacturer, vapor distributor, or seller, all as
defined in section 5743.01 of the Revised Code, an amount equal to
the federal and state excise taxes paid by any person on or for such
cigarettes, tobacco products, or vapor products under subtitle E of
the Internal Revenue Code or Chapter 5743. of the Revised Code;
(r)
In the case of receipts from the sale, transfer, exchange, or other
disposition of motor fuel as "motor fuel" is defined in
section 5736.01 of the Revised Code, an amount equal to the value of
the motor fuel, including federal and state motor fuel excise taxes
and receipts from billing or invoicing the tax imposed under section
5736.02 of the Revised Code to another person;
(s)
In the case of receipts from the sale of beer or intoxicating liquor,
as defined in section 4301.01 of the Revised Code, by a person
holding a permit issued under Chapter 4301. or 4303. of the Revised
Code, an amount equal to federal and state excise taxes paid by any
person on or for such beer or intoxicating liquor under subtitle E of
the Internal Revenue Code or Chapter 4301. or 4305. of the Revised
Code;
(t)
Receipts realized by a new motor vehicle dealer or used motor vehicle
dealer, as defined in section 4517.01 of the Revised Code, from the
sale or other transfer of a motor vehicle, as defined in that
section, to another motor vehicle dealer for the purpose of resale by
the transferee motor vehicle dealer, but only if the sale or other
transfer was based upon the transferee's need to meet a specific
customer's preference for a motor vehicle;
(u)
Receipts from a financial institution described in division (E)(3) of
this section for services provided to the financial institution in
connection with the issuance, processing, servicing, and management
of loans or credit accounts, if such financial institution and the
recipient of such receipts have at least fifty per cent of their
ownership interests owned or controlled, directly or constructively
through related interests, by common owners;
(v)
Receipts realized from administering anti-neoplastic drugs and other
cancer chemotherapy, biologicals, therapeutic agents, and supportive
drugs in a physician's office to patients with cancer;
(w)
Funds received or used by a mortgage broker that is not a dealer in
intangibles, other than fees or other consideration, pursuant to a
table-funding mortgage loan or warehouse-lending mortgage loan. Terms
used in division (F)(2)(w) of this section have the same meanings as
in section 1322.01 of the Revised Code, except "mortgage broker"
means a person assisting a buyer in obtaining a mortgage loan for a
fee or other consideration paid by the buyer or a lender, or a person
engaged in table-funding or warehouse-lending mortgage loans that are
first lien mortgage loans.
(x)
Property, money, and other amounts received by a professional
employer organization, as defined in section 4125.01 of the Revised
Code, or an alternate employer organization, as defined in section
4133.01 of the Revised Code, from a client employer, as defined in
either of those sections as applicable, in excess of the
administrative fee charged by the professional employer organization
or the alternate employer organization to the client employer;
(y)
In the case of amounts retained as commissions by a permit holder
under Chapter 3769. of the Revised Code, an amount equal to the
amounts specified under that chapter that must be paid to or
collected by the tax commissioner as a tax and the amounts specified
under that chapter to be used as purse money;
(z)
Qualifying distribution center receipts as determined under section
5751.40 of the Revised Code;
(aa)
Receipts of an employer from payroll deductions relating to the
reimbursement of the employer for advancing moneys to an unrelated
third party on an employee's behalf;
(bb)
Cash discounts allowed and taken;
(cc)
Returns and allowances;
(dd)
Bad debts from receipts on the basis of which the tax imposed by this
chapter was paid in a prior quarterly tax payment period. For the
purpose of this division, "bad debts" means any debts that
have become worthless or uncollectible between the preceding and
current quarterly tax payment periods, have been uncollected for at
least six months, and that may be claimed as a deduction under
section 166 of the Internal Revenue Code and the regulations adopted
under that section, or that could be claimed as such if the taxpayer
kept its accounts on the accrual basis. "Bad debts" does
not include repossessed property, uncollectible amounts on property
that remains in the possession of the taxpayer until the full
purchase price is paid, or expenses in attempting to collect any
account receivable or for any portion of the debt recovered.
(ee)
Any amount realized from the sale of an account receivable to the
extent the receipts from the underlying transaction giving rise to
the account receivable were included in the gross receipts of the
taxpayer;
(ff)
Any receipts directly attributed to a transfer agreement or to the
enterprise transferred under that agreement under section 4313.02 of
the Revised Code;
(gg)
Qualified uranium receipts as determined under section 5751.41 of the
Revised Code;
(hh)
In the case of amounts collected by a licensed casino operator from
casino gaming, amounts in excess of the casino operator's gross
casino revenue. In this division, "casino operator" and
"casino gaming" have the meanings defined in section
3772.01 of the Revised Code, and "gross casino revenue" has
the meaning defined in section 5753.01 of the Revised Code.
(ii)
Receipts realized from the sale of agricultural commodities by an
agricultural commodity handler, both as defined in section 926.01 of
the Revised Code, that is licensed by the director of agriculture to
handle agricultural commodities in this state;
(jj)
Qualifying integrated supply chain receipts as determined under
section 5751.42 of the Revised Code;
(kk)
In the case of a railroad company described in division (D)(9) of
section 5727.01 of the Revised Code that purchases dyed diesel fuel
directly from a supplier as defined by section 5736.01 of the Revised
Code, an amount equal to the product of the number of gallons of dyed
diesel fuel purchased directly from such a supplier multiplied by the
average wholesale price for a gallon of diesel fuel as determined
under section 5736.02 of the Revised Code for the period during which
the fuel was purchased multiplied by a fraction, the numerator of
which equals the rate of tax levied by section 5736.02 of the Revised
Code less the rate of tax computed in section 5751.03 of the Revised
Code, and the denominator of which equals the rate of tax computed in
section 5751.03 of the Revised Code;
(ll)
Receipts realized by an out-of-state disaster business from disaster
work conducted in this state during a disaster response period
pursuant to a qualifying solicitation received by the business. Terms
used in division (F)(2)(ll) of this section have the same meanings as
in section 5703.94 of the Revised Code.
(mm)
In the case of receipts from the sale or transfer of a
mortgage-backed security or a mortgage loan by a mortgage lender
holding a valid certificate of registration issued under Chapter
1322. of the Revised Code or by a person that is a member of the
mortgage lender's consolidated elected taxpayer group, an amount
equal to the principal balance of the mortgage loan;
(nn)
Amounts of excess surplus of the state insurance fund received by the
taxpayer from the Ohio bureau of workers' compensation pursuant to
rules adopted under section 4123.321 of the Revised Code;
(oo)
Except as otherwise provided in division (B) of section 5751.091 of
the Revised Code, receipts of a megaproject supplier from sales of
tangible personal property directly to a megaproject operator in this
state for use at the site of the megaproject operator's megaproject,
provided that the sale occurs during the period that the megaproject
operator has an agreement with the tax credit authority for the
megaproject under division (D) of section 122.17 of the Revised Code
that remains in effect and has not expired or been terminated, and
provided the megaproject supplier holds a certificate for such
megaproject issued under section 5751.052 of the Revised Code for the
calendar year in which the sales are made and, if the megaproject
supplier meets the requirements described in division (A)(13)(b) of
section 122.17 of the Revised Code, the megaproject supplier holds a
certificate for such megaproject issued under division (D)(11) of
section 122.17 of the Revised Code on the first day of that calendar
year;
(pp)
Receipts from the sale of each new piece of capital equipment that
has a cost in excess of one hundred million dollars and that is used
at the site of a megaproject that satisfies the criteria described in
division (A)(11)(a)(ii) of section 122.17 of the Revised Code,
provided that the sale occurs during the period that a megaproject
operator has an agreement for that megaproject with the tax credit
authority under division (D) of section 122.17 of the Revised Code
that remains in effect and has not expired or been terminated;
(qq)
In the case of amounts collected by a sports gaming proprietor from
sports gaming, amounts in excess of the proprietor's sports gaming
receipts. As used in this division, "sports gaming proprietor"
has the same meaning as in section 3775.01 of the Revised Code and
"sports gaming receipts" has the same meaning as in section
5753.01 of the Revised Code.
(rr)
Amounts received from any federal, state, or local grant, and amounts
of indebtedness discharged or forgiven pursuant to federal, state, or
local law, for providing or expanding access to broadband service in
this state. As used in this division, "broadband service"
has the same meaning as in section 188.01 of the Revised Code.
(ss)
Receipts provided to a taxpayer to compensate for lost business
resulting from the train derailment near the city of East Palestine
on February 3, 2023, by any of the following:
(i)
A federal, state, or local government agency;
(ii)
A railroad company, as that term is defined in section 5727.01 of the
Revised Code;
(iii)
Any subsidiary, insurer, or agent of a railroad company or any
related person.
(tt)
An amount equal to the fee imposed by section 3743.22 of the Revised
Code billed to the purchaser, collected by the taxpayer, and remitted
to the fire marshal during the tax period, provided that the fee is
separately stated on the invoice, bill of sale, or similar document
given to the purchaser of 1.4G fireworks in this state
.
;
(uu)
Any
receipts for which the tax imposed by this chapter is prohibited by
the constitution or laws of the United States or the constitution of
this state;
In
the case of amounts collected by an internet gambling operator from
internet gambling, amounts in excess of the operator's internet
gambling receipts. As used in this division, "internet gambling"
and "internet gambling operator" have the same meanings as
in section 3771.01 of the Revised Code, and "internet gambling
receipts" has the same meaning as in section 5753.01 of the
Revised Code.
(vv)
Receipts from fees imposed under sections 128.41 and 128.42 of the
Revised Code
;
(ww)
Any receipts for which the tax imposed by this chapter is prohibited
by the constitution or laws of the United States or the constitution
of this state
.
(3)
In the case of a taxpayer when acting as a real estate broker, "gross
receipts" includes only the portion of any fee for the service
of a real estate broker, or service of a real estate salesperson
associated with that broker, that is retained by the broker and not
paid to an associated real estate salesperson or another real estate
broker. For the purposes of this division, "real estate broker"
and "real estate salesperson" have the same meanings as in
section 4735.01 of the Revised Code.
(4)
A taxpayer's method of accounting for gross receipts for a tax period
shall be the same as the taxpayer's method of accounting for federal
income tax purposes for the taxpayer's federal taxable year that
includes the tax period. If a taxpayer's method of accounting for
federal income tax purposes changes, its method of accounting for
gross receipts under this chapter shall be changed accordingly.
(G)
"Taxable gross receipts" means gross receipts sitused to
this state under section 5751.033 of the Revised Code.
(H)
A person has "substantial nexus with this state" if any of
the following applies. The person:
(1)
Owns or uses a part or all of its capital in this state;
(2)
Holds a certificate of compliance with the laws of this state
authorizing the person to do business in this state;
(3)
Has bright-line presence in this state;
(4)
Otherwise has nexus with this state to an extent that the person can
be required to remit the tax imposed under this chapter under the
Constitution of the United States.
(I)
A person has "bright-line presence" in this state for a
reporting period and for the remaining portion of the calendar year
if any of the following applies. The person:
(1)
Has at any time during the calendar year property in this state with
an aggregate value of at least fifty thousand dollars. For the
purpose of division (I)(1) of this section, owned property is valued
at original cost and rented property is valued at eight times the net
annual rental charge.
(2)
Has during the calendar year payroll in this state of at least fifty
thousand dollars. Payroll in this state includes all of the
following:
(a)
Any amount subject to withholding by the person under section 5747.06
of the Revised Code;
(b)
Any other amount the person pays as compensation to an individual
under the supervision or control of the person for work done in this
state; and
(c)
Any amount the person pays for services performed in this state on
its behalf by another.
(3)
Has during the calendar year taxable gross receipts of at least five
hundred thousand dollars;
(4)
Has at any time during the calendar year within this state at least
twenty-five per cent of the person's total property, total payroll,
or total gross receipts;
(5)
Is domiciled in this state as an individual or for corporate,
commercial, or other business purposes.
(J)
"Tangible personal property" has the same meaning as in
section 5739.01 of the Revised Code.
(K)
"Internal Revenue Code" means the Internal Revenue Code of
1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in this
chapter that is not otherwise defined has the same meaning as when
used in a comparable context in the laws of the United States
relating to federal income taxes unless a different meaning is
clearly required. Any reference in this chapter to the Internal
Revenue Code includes other laws of the United States relating to
federal income taxes.
(L)
"Calendar quarter" means a three-month period ending on the
thirty-first day of March, the thirtieth day of June, the thirtieth
day of September, or the thirty-first day of December.
(M)
"Tax period" means the calendar quarter on the basis of
which a taxpayer is required to pay the tax imposed under this
chapter.
(N)
"Agent" means a person authorized by another person to act
on its behalf to undertake a transaction for the other, including any
of the following:
(1)
A person receiving a fee to sell financial instruments;
(2)
A person retaining only a commission from a transaction with the
other proceeds from the transaction being remitted to another person;
(3)
A person issuing licenses and permits under section 1533.13 of the
Revised Code;
(4)
A lottery sales agent holding a valid license issued under section
3770.05 of the Revised Code;
(5)
A person acting as an agent of the division of liquor control under
section 4301.17 of the Revised Code.
(O)
"Received" includes amounts accrued under the accrual
method of accounting.
(P)
"Reporting person" means a person in a consolidated elected
taxpayer or combined taxpayer group that is designated by that group
to legally bind the group for all filings and tax liabilities and to
receive all legal notices with respect to matters under this chapter,
or, for the purposes of section 5751.04 of the Revised Code, a
separate taxpayer that is not a member of such a group.
(Q)
"Megaproject," "megaproject operator," and
"megaproject supplier" have the same meanings as in section
122.17 of the Revised Code.
(R)
"Exclusion amount" means three million dollars beginning in
2024 and six million dollars beginning in 2025.
Sec.
5753.01.
As
used in Chapter 5753. of the Revised Code and for no other purpose
under Title LVII of the Revised Code:
(A)
"Casino facility" has the same meaning as in section
3772.01 of the Revised Code.
(B)
"Casino gaming" has the same meaning as in section 3772.01
of the Revised Code.
(C)
"Casino operator" has the same meaning as in section
3772.01 of the Revised Code.
(D)
"Gross casino revenue" means the total amount of money
exchanged for the purchase of chips, tokens, tickets, electronic
cards, or similar objects by casino patrons, less winnings paid to
wagerers. "Gross casino revenue" does not include
either
any
of
the following:
(1)
The issuance to casino patrons or wagering by casino patrons of any
promotional gaming credit as defined in section 3772.01 of the
Revised Code. When issuance of the promotional gaming credit requires
money exchanged as a match from the patron, the excludible portion of
the promotional gaming credit does not include the portion of the
wager purchased by the patron.
(2)
Sports gaming receipts
;
(3)
Internet gambling receipts
.
(E)
"Person" has the same meaning as in section 3772.01 of the
Revised Code.
(F)
"Slot machine" has the same meaning as in section 3772.01
of the Revised Code.
(G)
"Sports gaming facility" and "sports gaming
proprietor" have the same meanings as in section 3775.01 of the
Revised Code.
(H)
"Sports gaming receipts" means the total gross receipts
received by a sports gaming proprietor from the operation of sports
gaming in this state, less the total of the following:
(1)
All cash and cash equivalents paid as winnings to sports gaming
patrons;
(2)
The dollar amount of all voided wagers.
(3)
Receipts received from the operation of lottery sports gaming on
behalf of the state under sections 3770.23 to 3770.25 of the Revised
Code.
(4)(a)
On and after January 1, 2027, but before January 1, 2032, ten per
cent of the promotional gaming credits wagered by patrons;
(b)
On and after January 1, 2032, twenty per cent of the promotional
gaming credits wagered by patrons.
As
used in division (H) of this section, "promotional gaming
credit" has the same meaning as in section 3775.01 of the
Revised Code. When issuance of a promotional gaming credit requires
money exchanged as a match from the patron, the deductible portion of
the promotional gaming credit does not include the portion of the
wager purchased by the patron.
(I)
"Table game" has the same meaning as in section 3772.01 of
the Revised Code.
(J)
"Taxpayer" means a casino operator subject to the tax
levied under section 5753.02 of the Revised Code
or
,
a
sports gaming proprietor subject to the tax levied under section
5753.021 of the Revised Code
,
or an internet gambling operator subject to the tax levied under
section 5753.022 of the Revised Code
.
(K)
"Tax period" means one twenty-four-hour period with regard
to which a casino operator
or
internet gambling operator
is
required to pay the tax levied by section 5753.02
or
5753.022
of
the Revised Code
,
as applicable,
and one calendar month with regard to which a sports gaming
proprietor is required to pay the tax levied by section 5753.021 of
the Revised Code.
(L)
"Internet gambling receipts" means the total gross receipts
received by an internet gambling operator from the operation of
internet gambling in this state, less the total of the following:
(1)
All cash and cash equivalents paid as winnings to internet gambling
patrons;
(2)
The dollar amount of all voided wagers.
(M)
"Internet gambling game," "Internet gambling,"
and "internet gambling operator" have the same meanings as
section 3771.01 of the Revised Code.
Sec.
5753.022.
For
the purpose of funding the needs of the state, a tax is hereby levied
on the internet gambling receipts of an internet gambling operator at
the rate of twenty-eight per cent of the operator's internet gambling
receipts. The tax imposed under this section is in addition to any
other taxes or fees imposed under the Revised Code.
Sec.
5753.031.
(A)
For the purpose of receiving and distributing, and accounting for,
revenue received from the tax levied by section 5753.021 of the
Revised Code and from fines imposed under Chapter 3775. of the
Revised Code, the following funds are created in the state treasury:
(1)
The sports gaming revenue fund;
(2)
The sports gaming tax administration fund, which the tax commissioner
shall use to defray the costs incurred in administering the tax
levied by section 5753.021 of the Revised Code;
(3)
The sports gaming profits education fund, which shall be used for the
support of public and nonpublic education for students in grades
kindergarten through twelve as determined in appropriations made by
the general assembly.
(4)
The problem
sports
gaming
gambling
fund.
(B)(1)
All of the following shall be deposited into the sports gaming
revenue fund:
(a)
All money collected from the tax levied under section 5753.021 of the
Revised Code;
(b)
The remainder of the fees described in division (G)(2) of section
3775.02 of the Revised Code, after the Ohio casino control commission
deposits the required amount in the sports gaming profits veterans
fund under that division;
(c)
Unclaimed winnings collected under division
(F)
(E)
of section 3775.10 of the Revised Code;
(d)
Any fines collected under Chapter 3775. of the Revised Code.
(2)
All other fees collected under Chapter 3775. of the Revised Code
shall be deposited into the casino control commission fund created
under section 5753.03 of the Revised Code.
(C)(1)
From the sports gaming revenue fund, the director of budget and
management shall transfer as needed to the tax refund fund amounts
equal to the refunds certified by the tax commissioner under section
5753.06 of the Revised Code and attributable to the tax levied under
section 5753.021 of the Revised Code.
(2)
Not later than the fifteenth day of each month, the director of
budget and management shall transfer from the sports gaming revenue
fund to the sports gaming tax administration fund the amount
necessary to reimburse the department of taxation's actual expenses
incurred in administering the tax levied under section 5753.021 of
the Revised Code.
(3)
Of the amount in the sports gaming revenue fund remaining after
making the transfers required by divisions (C)(1) and (2) of this
section, the director of budget and management shall transfer, on or
before the fifteenth day of the month following the end of each
calendar quarter, amounts to each fund as follows:
(a)
Ninety-eight per cent to the sports gaming profits education fund;
(b)
Two per cent to the problem
sports
gaming
gambling
fund.
(D)
All interest generated by the funds created under this section shall
be credited back to them.
Sec.
5753.032.
(A)
For the purpose of receiving and distributing, and accounting for,
revenue received from the tax levied by section 5753.022 of the
Revised Code, the following funds are created in the state treasury:
(1)
The internet gambling revenue fund;
(2)
The internet gambling tax administration fund, which the tax
commissioner shall use to defray the costs incurred in administering
the tax levied by section 5753.022 of the Revised Code.
(B)
All money collected from the tax levied under section 5753.022 of the
Revised Code shall be deposited in the internet gambling revenue
fund.
(C)(1)
From the internet gambling revenue fund, the director of budget and
management shall transfer as needed to the tax refund fund amounts
equal to the refunds certified by the tax commissioner under section
5753.06 of the Revised Code and attributable to the tax levied under
section 5753.022 of the Revised Code.
(2)
Not later than the fifteenth day of each month, the director of
budget and management shall transfer from the internet gambling
revenue fund to the internet gambling tax administration fund the
amount necessary to reimburse the department of taxation's actual
expenses incurred in administering the tax levied under section
5753.022 of the Revised Code.
(3)
Of the amount in the internet gambling revenue fund remaining after
making the transfers required by divisions (C)(1) and (2) of this
section, the director of budget and management shall transfer, on or
before the fifteenth day of the month following the end of each
calendar quarter, amounts to each fund as follows:
(a)
Ninety-nine per cent to the general revenue fund;
(b)
One per cent to the problem gambling fund created under section
5753.031 of the Revised Code.
Sec.
5753.04.
(A)
Each taxpayer shall file returns electronically with the tax
commissioner. Casino operators
and
internet gambling operators
shall
file returns daily each day banks are open for business, not later
than noon
,
and sports
.
Sports
gaming
proprietors shall file returns on or before the fifteenth day of each
month, not later than noon. The return shall be in the form required
by the tax commissioner, and shall reflect the relevant tax period.
The return shall include, but is not limited to, the amount of the
taxpayer's gross casino revenue
or
,
sports
gaming receipts
,
or internet gambling receipts
for the tax period and the amount of tax due under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code for the tax period. The taxpayer shall remit
electronically with the return the tax due.
(B)
If a casino operator
or
,
sports
gaming proprietor
,
or internet gambling operator
ceases to be a taxpayer at any time, the operator or proprietor shall
indicate the last date for which the operator or proprietor was
liable for the tax. The return shall include a space for this
purpose.
(C)
Except as otherwise provided in division (A) of section 3775.14 of
the Revised Code, the information in a return a sports gaming
proprietor files with the tax commissioner under this section
concerning sports gaming receipts is subject to disclosure as a
public record under section 149.43 of the Revised Code.
Sec.
5753.05.
(A)(1)
A taxpayer who fails to file a return or to remit the tax due as
required by section 5753.04 of the Revised Code shall pay a penalty
not to exceed the greater of five hundred dollars or ten per cent of
the tax due.
(2)
If the tax commissioner finds additional tax to be due, the tax
commissioner may impose an additional penalty of up to fifteen per
cent of the additional tax found to be due. A delinquent payment of
tax made as the result of a notice or an audit is subject to the
additional penalty imposed by this division.
(3)
If a taxpayer fails to file a return electronically or to remit the
tax electronically, the tax commissioner may impose an additional
penalty of fifty dollars or ten per cent of the tax due as shown on
the return, whichever is greater.
(B)
If the tax due under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code is not timely paid, the taxpayer shall pay
interest at the rate per annum prescribed in section 5703.47 of the
Revised Code beginning on the day the tax was due through the day the
tax is paid or an assessment is issued, whichever occurs first.
(C)
The tax commissioner shall collect any penalty or interest as if it
were the tax levied by section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code, as applicable. Penalties and interest shall be
treated as if they were revenue arising from the applicable tax.
(D)
The tax commissioner may abate all or a portion of any penalty
imposed under this section and may adopt rules governing abatements.
(E)
If a casino operator
or
,
sports
gaming proprietor
,
or internet gambling operator
fails to file a return or remit the tax due as required by section
5753.04 of the Revised Code within a period of one year after the due
date for filing the return or remitting the tax, the Ohio casino
control commission may suspend the operator's or proprietor's
license.
Sec.
5753.07.
(A)(1)
The tax commissioner may issue an assessment, based on any
information in the tax commissioner's possession, against a taxpayer
who fails to pay
the
a
tax
levied under
section
5753.02 or 5753.021 of the Revised Code
this
chapter
or
to file a return under section 5753.04 of the Revised Code. The tax
commissioner shall give the taxpayer written notice of the assessment
under section 5703.37 of the Revised Code. With the notice, the tax
commissioner shall include instructions on how to petition for
reassessment and on how to request a hearing with respect to the
petition.
(2)
Unless the taxpayer, within sixty days after service of the notice of
assessment, files with the tax commissioner, either personally or by
certified mail, a written petition signed by the taxpayer, or by the
taxpayer's authorized agent who has knowledge of the facts, the
assessment becomes final, and the amount of the assessment is due and
payable from the taxpayer to the treasurer of state. The petition
shall indicate the taxpayer's objections to the assessment.
Additional objections may be raised in writing if they are received
by the tax commissioner before the date shown on the final
determination.
(3)
If a petition for reassessment has been properly filed, the tax
commissioner shall proceed under section 5703.60 of the Revised Code.
(4)
After an assessment becomes final, if any portion of the assessment,
including penalties and accrued interest, remains unpaid, the tax
commissioner may file a certified copy of the entry making the
assessment final in the office of the clerk of the court of common
pleas of Franklin county or in the office of the clerk of the court
of common pleas of the county in which the taxpayer resides, the
taxpayer's casino facility or sports gaming facility is located, or
the taxpayer's principal place of business in this state is located.
Immediately upon the filing of the entry, the clerk shall enter a
judgment for the state against the taxpayer assessed in the amount
shown on the entry. The judgment may be filed by the clerk in a
loose-leaf book entitled, "special judgments for the gross
casino revenue tax
and
,
sports
gaming receipts tax
,
and internet gambling receipts tax
."
The judgment has the same effect as other judgments. Execution shall
issue upon the judgment at the request of the tax commissioner, and
all laws applicable to sales on execution apply to sales made under
the judgment.
(5)
If the assessment is not paid in its entirety within sixty days after
the day the assessment was issued, the portion of the assessment
consisting of tax due shall bear interest at the rate per annum
prescribed by section 5703.47 of the Revised Code from the day the
tax commissioner issued the assessment until the assessment is paid
or until it is certified to the attorney general for collection under
section 131.02 of the Revised Code, whichever comes first. If the
unpaid portion of the assessment is certified to the attorney general
for collection, the entire unpaid portion of the assessment shall
bear interest at the rate per annum prescribed by section 5703.47 of
the Revised Code from the date of certification until the date it is
paid in its entirety. Interest shall be paid in the same manner as
the tax levied under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code, as applicable, and may be collected by the
issuance of an assessment under this section.
(B)
If the tax commissioner believes that collection of the tax levied
under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code will be jeopardized unless proceedings to collect
or secure collection of the tax are instituted without delay, the
commissioner may issue a jeopardy assessment against the taxpayer
that is liable for the tax. Immediately upon the issuance of a
jeopardy assessment, the tax commissioner shall file an entry with
the clerk of the court of common pleas in the manner prescribed by
division (A)(4) of this section, and the clerk shall proceed as
directed in that division. Notice of the jeopardy assessment shall be
served on the taxpayer or the taxpayer's authorized agent under
section 5703.37 of the Revised Code within five days after the filing
of the entry with the clerk. The total amount assessed is immediately
due and payable, unless the taxpayer assessed files a petition for
reassessment under division (A)(2) of this section and provides
security in a form satisfactory to the tax commissioner that is in an
amount sufficient to satisfy the unpaid balance of the assessment. If
a petition for reassessment has been filed, and if satisfactory
security has been provided, the tax commissioner shall proceed under
division (A)(3) of this section. Full or partial payment of the
assessment does not prejudice the tax commissioner's consideration of
the petition for reassessment.
(C)
The tax commissioner shall immediately forward to the treasurer of
state all amounts the tax commissioner receives under this section,
and the amounts forwarded shall be treated as if they were revenue
arising from the tax levied under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code, as applicable.
(D)
Except as otherwise provided in this division, no assessment shall be
issued against a taxpayer for the tax levied under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code more than four years after the due date for
filing the return for the tax period for which the tax was reported,
or more than four years after the return for the tax period was
filed, whichever is later. This division does not bar an assessment
against a taxpayer who fails to file a return as required by section
5753.04 of the Revised Code or who files a fraudulent return, or when
the taxpayer and the tax commissioner waive in writing the time
limitation.
(E)
If the tax commissioner possesses information that indicates that the
amount of tax a taxpayer is liable to pay under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code exceeds the amount the taxpayer paid, the tax
commissioner may audit a sample of the taxpayer's gross casino
revenue
or
,
sports
gaming receipts,
or
internet gambling receipts,
as
applicable, over a representative period of time to ascertain the
amount of tax due, and may issue an assessment based on the audit.
The tax commissioner shall make a good faith effort to reach
agreement with the taxpayer in selecting a representative sample. The
tax commissioner may apply a sampling method only if the tax
commissioner has prescribed the method by rule.
(F)
If the whereabouts of a taxpayer who is liable for the tax levied
under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code are unknown to the tax commissioner, the tax
commissioner shall proceed under section 5703.37 of the Revised Code.
Sec.
5753.08.
If
a taxpayer who is liable for the tax levied under section 5753.02
or
,
5753.021
,
or 5753.022
of the Revised Code sells a casino facility or sports gaming
facility, disposes of a casino facility or sports gaming facility in
any manner other than in the regular course of business, or quits the
casino gaming
or
,
sports
gaming business,
or
internet gambling business,
any
tax owed by that person becomes immediately due and payable, and the
person shall pay the tax due, including any applicable penalties and
interest. The person's successor shall withhold a sufficient amount
of the purchase money to cover the amounts due and unpaid until the
predecessor produces a receipt from the tax commissioner showing that
the amounts due have been paid or a certificate indicating that no
taxes are due. If the successor fails to withhold purchase money, the
successor is personally liable, up to the purchase money amount, for
amounts that were unpaid during the operation of the business by the
predecessor.
Sec.
5753.12.
(A)
Notwithstanding any provision of this chapter, any person who
operates a casino facility without holding a current, valid license
issued under Chapter 3772. of the Revised Code
or
,
operates
a
sports gaming facility without holding a current, valid license
issued under Chapter 3775. of the Revised Code
,
or conducts internet gambling without holding a current, valid
license issued under Chapter 3771. of the Revised Code
is liable for any amounts, including tax, interest, and penalties,
imposed under this chapter in the same manner as persons that do hold
such a license.
(B)
The tax commissioner may issue an assessment against a person
described in division (A) of this section for any amount due under
this chapter in the same manner provided under section 5753.07 of the
Revised Code.
Section
2.
That
existing sections 109.572, 2915.01, 2915.02, 3123.90, 3769.08,
3772.01, 3772.02, 3772.03, 3772.031, 3772.04, 3772.062, 5747.02,
5747.063, 5747.20, 5751.01, 5753.01
,
5753.031
,
5753.04, 5753.05, 5753.07, 5753.08, and 5753.12 of the Revised Code
are hereby repealed.
Section
3.
(A)
The Executive Director of the Ohio Casino Control Commission shall
designate a launch date for internet gambling that is as soon as
practicable after the effective date of this section and not later
than March 31, 2026. No person shall offer internet gambling in this
state before the launch date.
(B)(1)
The Executive Director of the Ohio Casino Control Commission shall
set a series of deadlines by which a person must apply for an
internet gambling license under Chapter 3771. of the Revised Code, as
enacted by this act, and meet all other requirements for the license,
in order to begin operating under the license on the launch date.
(2)
If a person applies for an internet gambling license after the
application deadline, the Commission is not required to review the
application in time to issue the person a license before the launch
date. If a person applies for an internet gambling license on or
before the application deadline, but fails to meet any other
requirement for the license by the applicable deadline to do so, the
Commission is not required to issue the person a license before the
launch date.
(C)
During the period beginning on the effective date of this section and
ending on October 1, 2026, all of the following apply:
(1)
At the request of an applicant for an internet gambling license under
Chapter 3771. of the Revised Code, as enacted by this act, the
Executive Director of the Ohio Casino Control Commission may issue a
provisional internet gambling license of the applicable type to the
applicant, so long as the applicant has submitted a completed
application for the license, including paying the required
application fee. The Commission may prescribe by rule the
requirements to receive a provisional internet gambling license,
including additional application and license fees.
(2)
In evaluating a request for a provisional internet gambling license,
the Executive Director may consider the applicant's apparent
eligibility for an internet gambling license under Chapter 3771. of
the Revised Code, as enacted by this act, including whether the
applicant has previously undergone a suitability investigation
similar to the investigation the applicant must undergo to receive
the internet gambling license.
(3)
The Executive Director shall determine the period for which a
provisional internet gambling license is valid, provided that the
period shall not exceed three months. The Executive Director may
renew a provisional internet gambling license for one additional
period not to exceed three months.
Section
4.
Section
3772.03 of the Revised Code is presented in this act as a composite
of the section as amended by H.B 29 of the 134th General Assembly and
both H.B. 49 and H.B. 132 of the 132nd General Assembly. The General
Assembly, applying the principle stated in division (B) of section
1.52 of the Revised Code that amendments are to be harmonized if
reasonably capable of simultaneous operation, finds that the
composite is the resulting version of the section in effect prior to
the effective date of the section as presented in this act.