Regards electronic instant bingo, lottery terminals; levy a tax

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 344

2025-2026

Representatives Dovilla, Manning

To
amend sections 718.031, 2915.01, 2915.02, 2915.07, 2915.09, 2915.091,
2915.093, 2915.094, 2915.10, 2915.101, 2915.13, 2915.14, 3770.06,
3770.99, 5739.02, 5747.064, 5753.01, 5753.04, 5753.05, 5753.07,
5753.08, and 5753.12 and to enact sections 3770.31, 3770.32, 3770.33,
3770.34, 3770.35, 3770.36, 3770.37, 3770.38, 3770.39, 3770.40,
3770.41, 5753.022, and 5753.032 of the Revised Code
to
expand the locations and manner in which electronic instant bingo may
be conducted, to authorize and establish regulations for retailer
video lottery terminals, and to levy a tax on electronic instant
bingo.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 718.031, 2915.01, 2915.02, 2915.07, 2915.09, 2915.091,
2915.093, 2915.094, 2915.10, 2915.101, 2915.13, 2915.14, 3770.06,
3770.99, 5739.02, 5747.064, 5753.01, 5753.04, 5753.05, 5753.07,
5753.08, and 5753.12 be amended and sections 3770.31, 3770.32,
3770.33, 3770.34, 3770.35, 3770.36, 3770.37, 3770.38, 3770.39,
3770.40, 3770.41, 5753.022, and 5753.032 of the Revised Code be
enacted to read as follows:

Sec.
718.031.
As
used in this section, "sports gaming facility" and "type
B sports gaming proprietor" have the same meanings as in section
3775.01 of the Revised Code

and
;

"lottery
sports gaming" has the same meaning as in section 3770.23 of the
Revised Code
;
and "retailer video lottery terminal," "retailer video
lottery terminal operator," and "retailer video lottery
terminal establishment" have the same meanings as in section
3770.31 of the Revised Code
.

(A)
A municipal corporation shall require the following persons to
withhold and remit municipal income tax with respect to amounts other
than qualifying wages as provided in this section:

(1)
A casino facility or a casino operator, as defined in Section 6(C)(9)
of Article XV, Ohio Constitution, and section 3772.01 of the Revised
Code, respectively;

(2)
A
video

lottery
sales agent conducting video lottery terminals on behalf of the
state;

(3)
A type B sports gaming proprietor offering sports gaming at a sports
gaming facility
;

(4)
A retailer video lottery terminal operator operating retailer video
lottery terminals
.

(B)
If a person's winnings at a casino facility or sports gaming facility
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 operator or sports gaming proprietor shall
deduct and withhold municipal income tax from the person's winnings
at the rate of the tax imposed by the municipal corporation in which
the casino facility or sports gaming facility is located.

(C)
Amounts deducted and withheld by a casino operator or sports gaming
proprietor are held in trust for the benefit of the municipal
corporation to which the tax is owed.

(1)
On or before the tenth day of each month, the casino operator or
sports gaming proprietor shall file a return electronically with the
tax administrator of the municipal corporation, providing the name,
address, and social security number of the person 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 or sports gaming that resulted in such winnings, and
any other information required by the tax administrator. With this
return, the casino operator or sports gaming proprietor shall remit
electronically to the municipal corporation all amounts deducted and
withheld during the preceding month.

(2)
Annually, on or before the thirty-first day of January, a casino
operator or sports gaming proprietor shall file an annual return
electronically with the tax administrator of the municipal
corporation in which the casino facility or sports gaming facility is
located, 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 name, address, or social security number of a person
or the amount deducted and withheld with respect to that person was
omitted on a monthly return for that reporting period, that
information shall be indicated on the annual return.

(3)
Annually, on or before the thirty-first day of January, a casino
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 of municipal income
tax deducted from the person's winnings during the preceding year.
The casino operator or sports gaming proprietor shall provide to the
tax administrator a copy of each information return issued under this
division. The administrator may require that such copies be
transmitted electronically.

(4)
A casino operator or sports gaming proprietor that fails to file a
return and remit the amounts deducted and withheld shall be
personally liable for the amount withheld and not remitted. Such
personal liability extends to any penalty and interest imposed for
the late filing of a return or the late payment of tax deducted and
withheld.

(5)
If a casino operator or sports gaming proprietor sells the casino
facility or sports gaming facility, or otherwise quits the casino or
sports gaming business, the amounts deducted and withheld along with
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 along with any
penalties and interest thereon until the predecessor casino operator
or sports gaming proprietor produces either of the following:

(a)
A receipt from the tax administrator showing that the amounts
deducted and withheld and penalties and interest thereon have been
paid;

(b)
A certificate from the tax administrator indicating that no amounts
are due.

If
the successor fails to withhold purchase money, the successor is
personally liable for the payment of the amounts deducted and
withheld and penalties and interest thereon.

(6)
The failure of a casino operator or sports gaming proprietor to
deduct and withhold the required amount from a person's winnings does
not relieve that person from liability for the municipal income tax
with respect to those winnings.

(D)
If a person's prize award from a video lottery terminal or from
lottery sports gaming offered in a video lottery terminal facility

or retailer video lottery terminal

is an amount for which reporting to the internal revenue service is
required by section 6041 of the Internal Revenue Code, as amended,
the video lottery sales agent

or retailer video lottery terminal operator

shall deduct and withhold municipal income tax from the person's
prize award at the rate of the tax imposed by the municipal
corporation in which the video lottery terminal facility

or retailer video lottery terminal establishment

is located.

(E)
Amounts deducted and withheld by a video lottery sales agent

or retailer video lottery terminal operator

are held in trust for the benefit of the municipal corporation to
which the tax is owed.

(1)
The video lottery sales agent

or retailer video lottery terminal operator

shall issue to a person from whose prize award an amount has been
deducted and withheld a receipt for the amount deducted and withheld,
and shall obtain from the person receiving a prize award the person's
name, address, and social security number in order to facilitate the
preparation of returns required by this section.

(2)
On or before the tenth day of each month, the video lottery sales
agent

or retailer video lottery terminal operator

shall file a return electronically with the tax administrator of the
municipal corporation providing the names, addresses, and social
security numbers of the persons from whose prize awards amounts were
deducted and withheld, the amount of each such deduction and
withholding during the preceding calendar month, the amount of the
prize award from which each such amount was withheld, and any other
information required by the tax administrator. With the return, the

video
lottery sales
agent

or
operator
shall
remit electronically to the tax administrator all amounts deducted
and withheld during the preceding month.

(3)
A video lottery sales agent

or retailer video lottery terminal operator

shall maintain a record of all receipts issued under division (E) of
this section and shall make those records available to the tax
administrator upon request. Such records shall be maintained in
accordance with section 5747.17 of the Revised Code and any rules
adopted pursuant thereto.

(4)
Annually, on or before the thirty-first day of January, each video
lottery terminal sales agent

or retailer video lottery terminal operator

shall file an annual return electronically with the tax administrator
of the municipal corporation in which the facility is located
indicating the total amount deducted and withheld during the
preceding calendar year. The
video
lottery sales
agent

or operator

shall remit electronically with the annual return any amount that was
deducted and withheld and that was not previously remitted. If the
name, address, or social security number of a person or the amount
deducted and withheld with respect to that person was omitted on a
monthly return for that reporting period, that information shall be
indicated on the annual return.

(5)
Annually, on or before the thirty-first day of January, a video
lottery sales agent

or retailer video lottery terminal operator

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 of
municipal income tax deducted and withheld from the person's prize
award by the
video
lottery sales
agent

or operator

during the preceding year.
A
video lottery sales
An

agent

or
retailer video lottery terminal operator
shall
provide to the tax administrator of the municipal corporation a copy
of each information return issued under this division. The tax
administrator may require that such copies be transmitted
electronically.

(6)
A video lottery sales agent

or retailer video lottery terminal operator

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. Such personal liability extends to any penalty and
interest imposed for the late filing of a return or the late payment
of tax deducted and withheld.

(F)
If a video lottery sales agent ceases to operate video lottery
terminals,

or if a retailer video lottery terminal operator ceases to operate
retailer video lottery terminals,

the amounts deducted and withheld along with any penalties and
interest thereon are immediately due and payable. The successor of
the
video
lottery sales
agent

or operator

that purchases the video lottery terminals

or retailer video lottery terminals

from the agent

or operator

shall withhold an amount from the purchase money that is sufficient
to cover the amounts deducted and withheld and any penalties and
interest thereon until the predecessor video lottery sales agent

or retailer video lottery terminal

operator produces either of the following:

(1)
A receipt from the tax administrator showing that the amounts
deducted and withheld and penalties and interest thereon have been
paid;

(2)
A certificate from the tax administrator indicating that no amounts
are due.

If
the successor fails to withhold purchase money, the successor is
personally liable for the payment of the amounts deducted and
withheld and penalties and interest thereon.

(G)
The failure of a video lottery sales agent

or video lottery terminal operator

to deduct and withhold the required amount from a person's prize
award does not relieve that person from liability for the municipal
income tax with respect to that prize award.

(H)
If a casino operator, sports gaming proprietor,
or
video lottery terminal operator,
or
lottery sales agent files a return late, fails to file a return,
remits amounts deducted and withheld late, or fails to remit amounts
deducted and withheld as required under this section, the tax
administrator of a municipal corporation may impose the following
applicable penalty:

(1)
For the late remittance of, or failure to remit, tax deducted and
withheld under this section, a penalty equal to fifty per cent of the
tax deducted and withheld;

(2)
For the failure to file, or the late filing of, a monthly or annual
return, a penalty of five hundred dollars for each return not filed
or filed late. Interest shall accrue on past due amounts deducted and
withheld at the rate prescribed in section 5703.47 of the Revised
Code.

(I)
Amounts deducted and withheld on behalf of a municipal corporation
shall be allowed as a credit against payment of the tax imposed by
the municipal corporation and shall be treated as taxes paid for
purposes of section 718.08 of the Revised Code. This division applies
only to the person for whom the amount is deducted and withheld.

(J)
The tax administrator shall prescribe the forms of the receipts and
returns required under this section.

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 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.

(Q)
(Q)(1)

"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

(2)
"Bingo
game
operator" does not include
a

either
of the following:

(a)
A
person
who is installing, maintaining, updating, or repairing an electronic
instant bingo system
;

(b)
An individual who is, or is employed by, an instant bingo host and
whose duties are related solely to nongaming activities such as
entertainment, maintenance, or preparing or serving food or
beverages
.

(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)

(EE)(1)

"Gross
profit" means gross receipts minus the amount actually expended
for the payment of prize awards.

(2)
"Ideal gross profit of a deal" means the amount that will
remain if all tickets in a deal are sold at the stated price and all
prizes are paid out.

(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

5101.311

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, 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
that

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)
"Instant bingo host" means the owner or lessor of a
location at which instant bingo, electronic instant bingo, or both
are conducted pursuant to a written contract with a charitable
instant bingo organization under section 2915.093 of the Revised
Code.

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)
With purpose to violate division (A)(1), (2), (3), (4), (5), or (6)
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

or as permitted pursuant to sections 3770.31 to 3770.41 of the
Revised Code by persons licensed pursuant to those sections and
persons who play retailer video lottery terminals at retailer video
lottery terminal establishments licensed pursuant to those sections
.

(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.
2915.07.
(A)
No person, except a charitable organization that has obtained a
license pursuant to section 2915.08 of the Revised Code, shall
conduct or advertise bingo. This division does not apply to a raffle
that a charitable organization conducts or advertises.

(B)

Subject
to the requirements of this chapter, any charitable organization may
conduct bingo as described in division (O)(1) of section 2915.01 of
the Revised Code pursuant to a type I license issued under section
2915.08 of the Revised Code.

(C)
Subject to the requirements of this chapter, only the following
persons may conduct instant bingo, as follows:

(1)
A charitable instant bingo organization, pursuant to a type II or
type III license issued under section 2915.08 of the Revised Code. A
charitable instant bingo organization that conducts instant bingo
under a type III license may do so only in accordance with section
2915.093 of the Revised Code.

(2)
A veteran's organization, fraternal organization, or sporting
organization, pursuant to a type II or type III license issued under
section 2915.08 of the Revised Code. A veteran's organization,
fraternal organization, or sporting organization that conducts
instant bingo under a type III license may do so only in accordance
with section 2915.13 of the Revised Code.

(D)
Subject to the requirements of this chapter, only the following
persons may conduct electronic instant bingo, as follows:

(1)
A charitable instant bingo organization, pursuant to a type III
license issued under section 2915.08 of the Revised Code and in
accordance with sections 2915.093 and 2915.14 of the Revised Code.

(2)
A veteran's organization or fraternal organization, pursuant to a
type II or type III license issued under section 2915.08 of the
Revised Code. A veteran's organization or fraternal organization that
conducts electronic instant bingo under a type III license may do so
only in accordance with sections 2915.13 and 2915.14 of the Revised
Code.

(E)

Whoever
violates
division
(A) of
this
section is guilty of conducting illegal bingo, a felony of the fourth
degree.

Sec.
2915.09.
(A)
No charitable organization that conducts bingo shall fail to do any
of the following:

(1)
Own all of the equipment used to conduct bingo or lease that
equipment from a charitable organization that is licensed to conduct
bingo,
or

from
the landlord of a premises where bingo is conducted,
or
from a distributor licensed under this chapter
for
a rental rate that is not more than is customary and reasonable for
that equipment;

(2)
Except as otherwise provided in
division

divisions

(A)(3)

and
(4)
of
this section, use all of the gross receipts from bingo for paying
prizes, for reimbursement of expenses for or for renting premises in
which to conduct a bingo session, for reimbursement of expenses for
or for purchasing or leasing bingo supplies used in conducting bingo,
for reimbursement of expenses for or for hiring security personnel,
for reimbursement of expenses for or for advertising bingo, or for
reimbursement of other expenses or for other expenses listed in
division (GG) of section 2915.01 of the Revised Code, provided that
the amount of the receipts so spent is not more than is customary and
reasonable for a similar purchase, lease, hiring, advertising, or
expense. If the building in which bingo is conducted is owned by the
charitable organization conducting bingo and the bingo conducted
includes a form of bingo described in division (O)(1) of section
2915.01 of the Revised Code, the charitable organization may deduct
from the total amount of the gross receipts from each session a sum
equal to the lesser of six hundred dollars or forty-five per cent of
the gross receipts from the bingo described in that division as
consideration for the use of the premises.

(3)
Use, or give, donate, or otherwise transfer, all of the net profit
derived from bingo described in division (O)(1) of section 2915.01 of
the Revised Code for a charitable purpose listed in its license
application and described in division (V) of section 2915.01 of the
Revised Code, or distribute all of the net profit from the proceeds
of the sale of instant bingo or electronic instant bingo as stated in
its license application and in accordance with section 2915.101 of
the Revised Code, as applicable
;

(4)
In the case of a charitable instant bingo organization, distribute
the ideal gross profit of each electronic instant bingo deal in
accordance with division (D) of section 2915.093 of the Revised Code
or distribute one hundred per cent of the amount it retains under
division (D)(3)(a) of that section as stated in its license
application and in accordance with section 2915.101 of the Revised
Code
.

(B)
No charitable organization that conducts a bingo game described in
division (O)(1) of section 2915.01 of the Revised Code shall fail to
do any of the following:

(1)
Conduct the bingo game on premises that are owned by the charitable
organization, on premises that are owned by another charitable
organization and leased from that charitable organization for a
rental rate not in excess of the lesser of six hundred dollars per
bingo session or forty-five per cent of the gross receipts of the
bingo session, on premises that are leased from a person other than a
charitable organization for a rental rate that is not more than is
customary and reasonable for premises that are similar in location,
size, and quality but not in excess of four hundred fifty dollars per
bingo session, or on premises that are owned by a person other than a
charitable organization, that are leased from that person by another
charitable organization, and that are subleased from that other
charitable organization by the charitable organization for a rental
rate not in excess of four hundred fifty dollars per bingo session.
No charitable organization is required to pay property taxes or
assessments on premises that the charitable organization leases from
another person to conduct bingo sessions. If the charitable
organization leases from a person other than a charitable
organization the premises on which it conducts bingo sessions, the
lessor of the premises shall provide the premises to the organization
and shall not provide the organization with bingo game operators,
security personnel, concessions or concession operators, bingo
supplies, or any other type of service. A charitable organization
shall not lease or sublease premises that it owns or leases to more
than three other charitable organizations per calendar week for
conducting bingo sessions on the premises. A person that is not a
charitable organization shall not lease premises that it owns,
leases, or otherwise is empowered to lease to more than three
charitable organizations per calendar week for conducting bingo
sessions on the premises. In no case shall more than nine bingo
sessions be conducted on any premises in any calendar week.

(2)
Display its license conspicuously at the premises where the bingo
session is conducted;

(3)
Conduct the bingo session in accordance with the definition of bingo
set forth in division (O)(1) of section 2915.01 of the Revised Code.

(C)
No charitable organization that conducts a bingo game described in
division (O)(1) of section 2915.01 of the Revised Code shall do any
of the following:

(1)
Pay any compensation to a bingo game operator for operating a bingo
session that is conducted by the charitable organization or for
preparing, selling, or serving food or beverages at the site of the
bingo session, permit any auxiliary unit or society of the charitable
organization to pay compensation to any bingo game operator who
prepares, sells, or serves food or beverages at a bingo session
conducted by the charitable organization, or permit any auxiliary
unit or society of the charitable organization to prepare, sell, or
serve food or beverages at a bingo session conducted by the
charitable organization, if the auxiliary unit or society pays any
compensation to the bingo game operators who prepare, sell, or serve
the food or beverages;

(2)
Pay consulting fees to any person for any services performed in
relation to the bingo session;

(3)
Pay concession fees to any person who provides refreshments to the
participants in the bingo session;

(4)
Except as otherwise provided in division (C)(4) of this section,
conduct more than three bingo sessions in any seven-day period. A
volunteer firefighter's organization or a volunteer rescue service
organization that conducts not more than five bingo sessions in a
calendar year may conduct more than three bingo sessions in a
seven-day period after notifying the attorney general when it will
conduct the sessions.

(5)
Pay out more than six thousand dollars in prizes for bingo games
described in division (O)(1) of section 2915.01 of the Revised Code
during any bingo session that is conducted by the charitable
organization. "Prizes" does not include awards from the
conduct of instant bingo.

(6)
Conduct a bingo session at any time during the eight-hour period
between two a.m. and ten a.m., at any time during, or within ten
hours of, a bingo game conducted for amusement only pursuant to
section 2915.12 of the Revised Code, at any premises not specified on
its license, or on any day of the week or during any time period not
specified on its license. Division (A)(6) of this section does not
prohibit the sale of instant bingo tickets beginning at nine a.m. for
a bingo session that begins at ten a.m. If circumstances make it
impractical for the charitable organization to conduct a bingo
session at the premises, or on the day of the week or at the time,
specified on its license, or if a charitable organization wants to
conduct bingo sessions on a day of the week or at a time other than
the day or time specified on its license, the charitable organization
may apply in writing to the attorney general for an amended license
pursuant to division (J) of section 2915.08 of the Revised Code. A
charitable organization may apply twice in each calendar year for an
amended license to conduct bingo sessions on a day of the week or at
a time other than the day or time specified on its license. If the
amended license is granted, the organization may conduct bingo
sessions at the premises, on the day of the week, and at the time
specified on its amended license.

(7)
Permit any person whom the charitable organization knows, or should
have known, is under the age of eighteen to work as a bingo game
operator;

(8)
Permit any person whom the charitable organization knows, or should
have known, has been convicted of a felony or gambling offense in any
jurisdiction to be a bingo game operator;

(9)
Permit the lessor of the premises on which the bingo session is
conducted, if the lessor is not a charitable organization, to provide
the charitable organization with bingo game operators, security
personnel, concessions, bingo supplies, or any other type of service;

(10)
Purchase or lease bingo supplies from any person except a distributor
issued a license under section 2915.081 of the Revised Code;

(11)(a)
Use or permit the use of electronic bingo aids except under the
following circumstances:

(i)
For any single participant, not more than ninety bingo faces can be
played using an electronic bingo aid or aids.

(ii)
The charitable organization shall provide a participant using an
electronic bingo aid with corresponding paper bingo cards or sheets.

(iii)
The total price of bingo faces played with an electronic bingo aid
shall be equal to the total price of the same number of bingo faces
played with a paper bingo card or sheet sold at the same bingo
session but without an electronic bingo aid.

(iv)
An electronic bingo aid cannot be part of an electronic network other
than a network that includes only bingo aids and devices that are
located on the premises at which the bingo is being conducted or be
interactive with any device not located on the premises at which the
bingo is being conducted.

(v)
An electronic bingo aid cannot be used to participate in bingo that
is conducted at a location other than the location at which the bingo
session is conducted and at which the electronic bingo aid is used.

(vi)
An electronic bingo aid cannot be used to provide for the input of
numbers and letters announced by a bingo caller other than the bingo
caller who physically calls the numbers and letters at the location
at which the bingo session is conducted and at which the electronic
bingo aid is used.

(b)
The attorney general may adopt rules in accordance with Chapter 119.
of the Revised Code that govern the use of electronic bingo aids. The
rules may include a requirement that an electronic bingo aid be
capable of being audited by the attorney general to verify the number
of bingo cards or sheets played during each bingo session.

(12)
Permit any person the charitable organization knows, or should have
known, to be under eighteen years of age to play bingo described in
division (O)(1) of section 2915.01 of the Revised Code.

(D)(1)
Except as otherwise provided in division (D)(3) of this section, no
charitable organization shall provide to a bingo game operator, and
no bingo game operator shall receive or accept, any commission, wage,
salary, reward, tip, donation, gratuity, or other form of
compensation, directly or indirectly, regardless of the source, for
conducting bingo or providing other work or labor at the site of
bingo during a bingo session.

(2)
Except as otherwise provided in
division

divisions

(D)(3)

and
(4)
of
this section, no charitable organization shall provide to a bingo
game operator any commission, wage, salary, reward, tip, donation,
gratuity, or other form of compensation, directly or indirectly,
regardless of the source, for conducting instant bingo, electronic
instant bingo, or both other than at a bingo session at the site of
instant bingo, electronic instant bingo, or both other than at a
bingo session.

(3)
Nothing in division (D) of this section prohibits an employee of a
fraternal organization, veteran's organization, or sporting
organization from selling instant bingo tickets or cards to the
organization's members or invited guests, as long as no portion of
the employee's compensation is paid from any receipts of bingo.

(4)
Division (D)(2) of this section does not apply to an employee of an
instant bingo host who is acting under section 2915.093 of the
Revised Code.

(E)
Notwithstanding division (B)(1) of this section, a charitable
organization that, prior to December 6, 1977, has entered into
written agreements for the lease of premises it owns to another
charitable organization or other charitable organizations for the
conducting of bingo sessions so that more than two bingo sessions are
conducted per calendar week on the premises, and a person that is not
a charitable organization and that, prior to December 6, 1977, has
entered into written agreements for the lease of premises it owns to
charitable organizations for the conducting of more than two bingo
sessions per calendar week on the premises, may continue to lease the
premises to those charitable organizations, provided that no more
than four sessions are conducted per calendar week, that the lessor
organization or person has notified the attorney general in writing
of the organizations that will conduct the sessions and the days of
the week and the times of the day on which the sessions will be
conducted, that the initial lease entered into with each organization
that will conduct the sessions was filed with the attorney general
prior to December 6, 1977, and that each organization that will
conduct the sessions was issued a license to conduct bingo games by
the attorney general prior to December 6, 1977.

(F)
This section does not prohibit a bingo licensed charitable
organization or a game operator from giving any person an instant
bingo ticket as a prize.

(G)
Whoever violates division (A)(2) of this section is guilty of
illegally conducting a bingo game, a felony of the fourth degree.
Except as otherwise provided in this division, whoever violates
division (A)(1) or (3), (B)(1), (2), or (3), (C)(1) to (11), or (D)
of this section is guilty of a minor misdemeanor. If the offender
previously has been convicted of a violation of division (A)(1) or
(3), (B)(1), (2), or (3), (C)(1) to (11), or (D) of this section, a
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C), or (D)
of this section is a misdemeanor of the first degree. Whoever
violates division (C)(12) of this section is guilty of a misdemeanor
of the first degree, or if the offender previously has been convicted
of a violation of division (C)(12) of this section, a felony of the
fourth degree.

Sec.
2915.091.
(A)

No

Except
as otherwise provided in division (B) of this section, no
charitable
organization that conducts instant bingo
,
and no instant bingo host,

shall do any of the following:

(1)
Fail to comply with the requirements of divisions (A)(1), (2), and
(3) of section 2915.09 of the Revised Code;

(2)
Conduct instant bingo unless either of the following applies

to the charitable organization
:

(a)
That organization 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), is described in subsection 501(c)(3) of the
Internal Revenue Code, is a charitable organization as defined in
section 2915.01 of the Revised Code, is in good standing in the state
pursuant to section 2915.08 of the Revised Code, and is in compliance
with Chapter 1716. of the Revised Code;

(b)
That organization 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), is described in subsection 501(c)(7), 501(c)(8),
501(c)(10), or 501(c)(19) or is a veteran's organization described in
subsection 501(c)(4) of the Internal Revenue Code, and conducts
instant bingo under section 2915.13 of the Revised Code.

(3)
Conduct instant bingo on any day, at any time, or at any premises not
specified on the organization's license issued pursuant to section
2915.08 of the Revised Code;

(4)
Permit any person whom the organization
or
the instant bingo host
knows
or should have known has been convicted of a felony or gambling
offense in any jurisdiction to be a bingo game operator in the
conduct of instant bingo;

(5)
Purchase or lease supplies used to conduct instant bingo or punch
board games from any person except a distributor licensed under
section 2915.081 of the Revised Code;

(6)
Sell or provide any instant bingo ticket or card for a price
different from the price printed on it by the manufacturer on either
the instant bingo ticket or card or on the game flare;

(7)
Sell an instant bingo ticket or card to a person under eighteen years
of age;

(8)
Fail to keep unsold instant bingo tickets or cards for less than
three years;

(9)

Pay

Except
as otherwise permitted under section 2915.093 of the Revised Code,
pay
any
compensation to a bingo game operator for conducting instant bingo
that is conducted by the organization or for preparing, selling, or
serving food or beverages at the site of the instant bingo game,
permit any auxiliary unit or society of the organization to pay
compensation to any bingo game operator who prepares, sells, or
serves food or beverages at an instant bingo game conducted by the
organization, or permit any auxiliary unit or society of the
organization to prepare, sell, or serve food or beverages at an
instant bingo game conducted by the organization, if the auxiliary
unit or society pays any compensation to the bingo game operators who
prepare, sell, or serve the food or beverages;

(10)
Pay fees to any person for any services performed in relation to an
instant bingo game, except as provided in division (D) of section
2915.093 of the Revised Code;

(11)
Pay fees to any person who provides refreshments to the participants
in an instant bingo game
,
except as otherwise permitted under section 2915.093 of the Revised
Code
;

(12)(a)
Allow instant bingo tickets or cards to be sold to bingo game
operators at a premises at which the organization sells instant bingo
tickets or cards or to be sold to employees of a D permit holder who
are working at a premises at which instant bingo tickets or cards are
sold;

(b)
Division (A)(12)(a) of this section does not prohibit a licensed
charitable organization or a bingo game operator from giving any
person an instant bingo ticket as a prize in place of a cash prize
won by a participant in an instant bingo game. In no case shall an
instant bingo ticket or card be sold or provided for a price
different from the price printed on it by the manufacturer on either
the instant bingo ticket or card or on the game flare.

(13)
Fail to display
its

the
charitable organization's
bingo
license, and the serial numbers of the deal of instant bingo tickets
or cards to be sold, conspicuously at each premises at which it sells
instant bingo tickets or cards;

(14)
Possess a deal of instant bingo tickets or cards that was not
purchased from a distributor licensed under section 2915.081 of the
Revised Code as reflected on an invoice issued by the distributor
that contains all of the information required by division (E) of
section 2915.10 of the Revised Code;

(15)
Fail, once it opens a deal of instant bingo tickets or cards, to
continue to sell the tickets or cards in that deal until the tickets
or cards with the top two highest tiers of prizes in that deal are
sold;

(16)
Possess bingo supplies that were not obtained in accordance with this
chapter.

(B)

Divisions
(A)(1), (8), (9), (10), and (11) of this section do not apply to an
instant bingo host who is acting under section 2915.093 of the
Revised Code.

(C)

A
charitable organization may purchase, lease, or use instant bingo
ticket dispensers to sell instant bingo tickets or cards.

(C)

(D)

The
attorney general may adopt rules in accordance with Chapter 119. of
the Revised Code that govern the conduct of instant bingo by
charitable organizations. Before those rules are adopted, the
attorney general shall reference the recommended standards for
opacity, randomization, minimum information, winner protection,
color, and cutting for instant bingo tickets or cards, seal cards,
and punch boards established by the North American gaming regulators
association.

(D)

(E)

Whoever
violates division (A) of this section or a rule adopted under
division
(C)

(D)

of
this section is guilty of illegal instant bingo conduct. Except as
otherwise provided in this division, illegal instant bingo conduct is
a misdemeanor of the first degree. If the offender previously has
been convicted of a violation of division (A) of this section or of
such a rule, illegal instant bingo conduct is a felony of the fifth
degree.

Sec.
2915.093.
(A)
As used in this section, "retail income from all commercial
activity" means the income that a person receives from the
provision of goods, services, or activities that are provided at the
location where instant bingo
or
electronic instant bingo
other
than at a bingo session is conducted, including the sale of instant
bingo
and
electronic instant bingo
tickets.
A religious organization that is exempt from federal income taxation
under subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code, at not more than one location at which it
conducts its charitable programs, may include donations from its
members and guests as retail income.

(B)(1)

If

Except
as otherwise permitted under division (B)(3) of this section, if
a
charitable instant bingo organization conducts instant bingo
or
electronic instant bingo
other
than at a bingo session under a type III license issued under section
2915.08 of the Revised Code, the charitable instant bingo
organization shall enter into a written contract with

the owner or lessor of the location at which the

an

instant
bingo
is
conducted
host

to
allow the
owner
or lessor
instant
bingo host
to
assist in the conduct of instant bingo
or
electronic instant bingo
other
than at a bingo session
,
identify
.
The contract shall do all of the following:

(a)
Identify the instant bingo host and
each
location where the instant bingo
or
electronic instant bingo
other
than at a bingo session is
being

to
be
conducted
,
and identify the owner or lessor of each location
;

(b)
Require the instant bingo host to comply with all applicable
requirements of division (A) of section 2915.091 and division (B) of
section 2915.14 of the Revised Code;

(c)
In the case of electronic instant bingo, identify the distributor
that will provide the deals to the organization
.

(2)

An
instant bingo host may assist in the conduct of electronic instant
bingo only if the host's location has an A-1-A, A-1c, or class D
liquor permit issued under Chapter 4303. of the Revised Code.

(3)

A
charitable instant bingo organization that conducts instant bingo
other than at a bingo session under a type III license issued under
section 2915.08 of the Revised Code is not required to enter into a
written contract with
the
owner or lessor of the location at which the instant bingo is
conducted, provided that the owner or lessor
an
instant bingo host if both of the following apply:

(a)
The instant bingo host
is
not assisting in the conduct of the instant bingo other than at a
bingo session

and provided that the
.

(b)
The
conduct
of the instant bingo other than at a bingo session at that location
is not more than five days per calendar year and not more than ten
hours per day.

(C)

(C)(1)

Except
as provided in division
(F)

(C)(2)

of
this section, no charitable instant bingo organization shall conduct
instant bingo
or
electronic instant bingo
other
than at a bingo session at a location where the primary source of
retail income from all commercial activity at that location is the
sale of instant bingo
or
electronic instant bingo
tickets.

(D)
The owner or lessor of a location that enters into a contract
pursuant to division (B) of this section
(2)
Division (C)(1) of this section does not apply to instant bingo
conducted by a volunteer firefighter's organization that is exempt
from federal income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code if both of the
following apply:

(a)
The organization conducts instant bingo other than at a bingo session
on the premises where the organization conducts firefighter training.

(b)
The organization conducted instant bingo continuously for at least
five years prior to July 1, 2003, and, during each of those five
years, had gross receipts of at least one million five hundred
thousand dollars.

(D)(1)
The charitable instant bingo organization shall obtain each deal from
a distributor and provide the deal to the instant bingo host with
which it has a written contract. In the case of instant bingo, the
charitable instant bingo organization shall purchase the deal from
the distributor. In the case of electronic instant bingo, the
distributor shall receive payment for the deal under division (D)(3)
of this section.

(2)
Before beginning to sell tickets from a deal, the instant bingo host

shall
pay
the
charitable instant bingo organization an amount equal to ninety-four
per cent of
the

full

ideal

gross
profit

to the charitable instant bingo organization,

of
the deal
in
return for the deal

of instant bingo tickets
.
The
owner
or lessor
instant
bingo host
may
retain
the

both
of the following:

(a)
The
money
that the
owner
or lessor
instant
bingo host
receives
for selling the instant bingo
or
electronic instant bingo
tickets,
provided, however, that after the deal has been sold, the
owner
or lessor
instant
bingo host
shall
pay to the charitable instant bingo organization the value of any
unredeemed instant bingo
or
electronic instant bingo
prizes
remaining in the deal of instant bingo
or
electronic instant bingo
tickets
.

The
charitable instant bingo organization shall pay six
;

(b)
Six
per
cent of the
total

ideal

gross

receipts
of any
profit
of the
deal

of
instant bingo tickets
for
the purpose of reimbursing the
owner
or lessor
instant
bingo host
for
expenses described in this division.

As
used in this division, "expenses" means those items
provided for in divisions (GG)(4), (5), (6), (7), (8), (12), and (13)
of section 2915.01 of the Revised Code and that percentage of the
owner's or lessor's rent for the location where instant bingo is
conducted. "Expenses," in the aggregate, shall not exceed
six per cent of the
total

ideal

gross

receipts

profit

of
any deal

of instant bingo tickets
.

As
used in this division, "full gross profit" means the amount
by which the total receipts of all instant bingo tickets, if the deal
had been sold in full, exceeds the amount that would be paid out if
all prizes were redeemed.

(3)
In the case of electronic instant bingo, both of the following apply:

(a)
The charitable instant bingo organization shall pay to the
distributor an amount equal to sixty-seven and one-half per cent of
the ideal gross profit of the deal and shall retain and distribute
the remaining twenty-six and one-half per cent of the ideal gross
profit of the deal in accordance with division (B)(2) of section
2915.101 of the Revised Code.

(b)
The distributor shall remit an amount equal to thirty-five per cent
of the ideal gross profit of the deal in the form of the tax levied
under section 5753.022 of the Revised Code and may retain the
remaining thirty-two and one-half per cent of the ideal gross profit
of the deal as payment for the cost of the deal.

(E)

(E)(1)

A
charitable instant bingo organization
that
enters into a written contract with an instant bingo host under this
section
shall
provide the attorney general with
all
of the following information:

(1)
That the charitable instant bingo organization has terminated
a
copy of the contract before conducting any instant bingo or
electronic instant bingo under the contract.

(2)
When a charitable instant bingo organization terminates
a

written

contract

entered
into pursuant to division (B) of this section
with
an

owner or lessor of a location;

(2)
That the charitable instant bingo organization has entered into a
written contract pursuant to division (B) of this section with a new
owner or lessor of a location;

instant
bingo host, the organization shall notify the attorney general within
thirty days after the termination.

(3)

That
the
A

charitable
instant bingo organization
is

that
becomes
aware
of
any

conduct
by
the
owner or lessor of a location at which instant bingo is conducted
an
instant bingo host
that
is in violation of this chapter

promptly shall notify the attorney general of the relevant facts
.

(F)
Division (C) of this section does not apply to a volunteer
firefighter's organization that is exempt from federal income
taxation under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code, that conducts instant bingo
other than at a bingo session on the premises where the organization
conducts firefighter training, that has conducted instant bingo
continuously for at least five years prior to July 1, 2003, and that,
during each of those five years, had gross receipts of at least one
million five hundred thousand dollars.

Sec.
2915.094.
(A)
No owner or lessor of a location shall assist a charitable instant
bingo organization in the conduct of instant bingo
or
electronic instant bingo
other
than at a bingo session at that location unless the owner or lessor
has
entered
into
a

valid

written
contract, as described in section 2915.093 of the Revised Code, with
the charitable instant bingo organization to
assist
in the conduct of
be
an
instant
bingo

other than at a bingo session

host for the organization
.

(B)
The
charitable
instant bingo organization shall designate the instant bingo host

location

of
the lessor or owner shall be designated
on
its application for a type III license under section 2915.08 of the
Revised Code
as
a location where the
charitable
instant bingo
organization
conducts
instant

bingo

other than at a bingo session
.

(C)
No
owner
or lessor of a location that enters into a written contract as
prescribed in division (A) of this section
instant
bingo host
shall
violate any provision of Chapter 2915. of the Revised Code, or
permit, aid, or abet any other person in violating any provision of
Chapter 2915. of the Revised Code.

(D)
No
owner
or lessor of a location that enters into a written contract as
prescribed in division (A) of this section
instant
bingo host
shall
violate the terms of
the

a

contract

with a charitable instant bingo organization
.

(E)(1)
Whoever violates division (C) or (D) of this section is guilty of
illegal instant bingo conduct. Except as otherwise provided in this
division, illegal instant bingo conduct is a misdemeanor of the first
degree. If the offender previously has been convicted of a violation
of division (C) or (D) of this section, illegal instant bingo conduct
is a felony of the fifth degree.

(2)
If an
owner
or lessor of a location
instant
bingo host
knowingly,
intentionally, or recklessly violates division (C) or (D) of this
section, any license that the
owner
or lessor
instant
bingo host
holds
for the retail sale of any goods on the
owner's
or lessor's
instant
bingo host's
premises
that is issued by the state or a political subdivision is subject to
suspension, revocation, or payment of a monetary penalty at the
request of the attorney general.

Sec.
2915.10.
(A)
No charitable organization that conducts bingo or a game of chance
pursuant to division (D) of section 2915.02 of the Revised Code shall
fail to maintain the following records for at least three years from
the date on which the bingo or game of chance is conducted:

(1)
An itemized list of the gross receipts of each bingo session, each
game of instant bingo by serial number, each electronic instant bingo
game by serial number, each raffle, each punch board game, and each
game of chance, and an itemized list of the gross profits of each
game of instant bingo by serial number and each electronic instant
bingo game by serial number;

(2)
An itemized list of all expenses, other than prizes, that are
incurred in conducting bingo, the name of each person to whom the
expenses are paid, and a receipt for all of the expenses;

(3)
A list of all prizes awarded during each bingo session, each raffle,
each punch board game, and each game of chance conducted by the
charitable organization, the total prizes awarded from each game of
instant bingo by serial number and each electronic instant bingo game
by serial number, and the name, address, and social security number
of all persons who are winners of prizes of six hundred dollars or
more in value;

(4)
An itemized list of the recipients of the net profit of the bingo or
game of chance, including the name and address of each recipient to
whom the money is distributed, and if the organization uses the net
profit of bingo, or the money or assets received from a game of
chance, for any charitable or other purpose set forth in division (V)
of section 2915.01, division (D) of section 2915.02, or section
2915.101 of the Revised Code, a list of each purpose and an itemized
list of each expenditure for each purpose;

(5)
The number of persons who participate in any bingo session or game of
chance that is conducted by the charitable organization;

(6)
A list of receipts from the sale of food and beverages by the
charitable organization or one of its auxiliary units or societies,
if the receipts were excluded from gross receipts under division (T)
of section 2915.01 of the Revised Code;

(7)
An itemized list of all expenses incurred at each bingo session, each
raffle, each punch board game, or each game of instant bingo or
electronic instant bingo conducted by the charitable organization in
the sale of food and beverages by the charitable organization or by
an auxiliary unit or society of the charitable organization, the name
of each person to whom the expenses are paid, and a receipt for all
of the expenses.

(B)
A charitable organization shall keep the records that it is required
to maintain pursuant to division (A) of this section at its principal
place of business in this state or at its headquarters in this state
and shall notify the attorney general of the location at which those
records are kept.

(C)

The

Except
as otherwise required under section 2915.093 of the Revised Code, the

gross
profit from each bingo session or game described in division (O)(1)
or (2) of section 2915.01 of the Revised Code shall be deposited into
a checking account devoted exclusively to the bingo session or game.
Payments for allowable expenses incurred in conducting the bingo
session or game and payments to recipients of some or all of the net
profit of the bingo session or game shall be made only by checks or
electronic fund transfers drawn on the bingo session or game account.

(D)
Each charitable organization shall conduct and record an inventory of
all of its bingo supplies as of the first day of November of each
year.

(E)
The attorney general may adopt rules in accordance with Chapter 119.
of the Revised Code that establish standards of accounting, record
keeping, and reporting to ensure that gross receipts from bingo or
games of chance are properly accounted for.

(F)
A distributor shall maintain, for a period of three years after the
date of its sale or other provision, a record of each instance of its
selling or otherwise providing to another person bingo supplies for
use in this state. The record shall include all of the following for
each instance:

(1)
The name of the manufacturer from which the distributor purchased the
bingo supplies and the date of the purchase;

(2)
The name and address of the charitable organization or other
distributor to which the bingo supplies were sold or otherwise
provided;

(3)
A description that clearly identifies the bingo supplies;

(4)
Invoices that include the nonrepeating serial numbers of all paper
bingo cards and sheets and all instant bingo
or
electronic instant bingo
deals
sold or otherwise provided to each charitable organization.

(G)
A manufacturer shall maintain, for a period of three years after the
date of its sale or other provision, a record of each instance of its
selling or otherwise providing bingo supplies for use in this state.
The record shall include all of the following for each instance:

(1)
The name and address of the distributor to whom the bingo supplies
were sold or otherwise provided;

(2)
A description that clearly identifies the bingo supplies, including
serial numbers;

(3)
Invoices that include the nonrepeating serial numbers of all paper
bingo cards and sheets and all instant bingo
or
electronic instant bingo
deals
sold or otherwise provided to each distributor.

(H)
The attorney general or any law enforcement agency may do all of the
following:

(1)
Investigate any charitable organization,
instant
bingo host,
distributor,
or manufacturer or any officer, agent, trustee, member, or employee
of the organization,
host,

distributor,
or manufacturer;

(2)
Examine the accounts and records of the charitable organization,

instant
bingo host,
distributor,
or manufacturer or of any officer, agent, trustee, member, or
employee of the organization,
host,

distributor,
or manufacturer;

(3)
Conduct inspections, audits, and observations of bingo or games of
chance;

(4)
Conduct inspections of the premises where bingo or games of chance
are conducted or where bingo supplies are manufactured or
distributed;

(5)
Take any other necessary and reasonable action to determine if a
violation of any provision of this chapter has occurred and to
determine whether section 2915.11 of the Revised Code has been
complied with.

If
any law enforcement agency has reasonable grounds to believe that a
charitable organization,
instant
bingo host,
distributor,
or manufacturer or an officer, agent, trustee, member, or employee of
the organization,
host,

distributor,
or manufacturer has violated any provision of this chapter, the law
enforcement agency may proceed by action in the proper court to
enforce this chapter, provided that the law enforcement agency shall
give written notice to the attorney general when commencing an action
as described in this division.

(I)
No person shall destroy, alter, conceal, withhold, or deny access to
any accounts or records of a charitable organization,
instant
bingo host,
distributor,
or manufacturer that have been requested for examination, or
obstruct, impede, or interfere with any inspection, audit, or
observation of bingo or a game of chance, of premises where bingo or
a game of chance is conducted, or of premises where bingo supplies
are manufactured or distributed, or refuse to comply with any
reasonable request of, or obstruct, impede, or interfere with any
other reasonable action undertaken by, the attorney general or a law
enforcement agency pursuant to division (H) of this section.

(J)
Whoever violates division (A) or (I) of this section is guilty of a
misdemeanor of the first degree.

Sec.
2915.101.
Except
as otherwise provided by law, a charitable organization that conducts
instant bingo or electronic instant bingo shall distribute the net
profit from the proceeds of the sale of instant bingo or electronic
instant bingo as follows:

(A)(1)
If a veteran's organization, a fraternal organization, or a sporting
organization conducted the instant bingo or electronic instant bingo,
the organization shall distribute the net profit from the proceeds of
the sale of instant bingo or electronic instant bingo, as follows:

(a)
For the first two hundred fifty thousand dollars, or a greater amount
prescribed by the attorney general to adjust for changes in prices as
measured by the consumer price index as defined in section 325.18 of
the Revised Code and other factors affecting the organization's
expenses, as defined in division (GG) of section 2915.01 of the
Revised Code, or less of net profit from the proceeds of the sale of
instant bingo or electronic instant bingo generated in a calendar
year:

(i)
At least twenty-five per cent shall be distributed to an organization
described in division (V)(1) of section 2915.01 of the Revised Code
or to a department or agency of the federal government, the state, or
any political subdivision.

(ii)
Not more than seventy-five per cent may be deducted and retained by
the organization for reimbursement of or for the organization's
expenses, as defined in division (GG) of section 2915.01 of the
Revised Code, in conducting the instant bingo or electronic instant
bingo game.

(b)
For any net profit from the proceeds of the sale of instant bingo or
electronic instant bingo of more than two hundred fifty thousand
dollars or an adjusted amount generated in a calendar year:

(i)
A minimum of fifty per cent shall be distributed to an organization
described in division (V)(1) of section 2915.01 of the Revised Code
or to a department or agency of the federal government, the state, or
any political subdivision.

(ii)
Five per cent may be distributed for the organization's own
charitable purposes or to a community action agency.

(iii)
Forty-five per cent may be deducted and retained by the organization
for reimbursement of or for the organization's expenses, as defined
in division (GG) of section 2915.01 of the Revised Code, in
conducting the instant bingo or electronic instant bingo game.

(2)
If a veteran's organization, a fraternal organization, or a sporting
organization does not distribute the full percentages specified in
divisions (A)(1)(a) and (b) of this section for the purposes
specified in those divisions, the organization shall distribute the
balance of the net profit from the proceeds of the sale of instant
bingo or electronic instant bingo not distributed or retained for
those purposes to an organization described in division (V)(1) of
section 2915.01 of the Revised Code.

(B)

(B)(1)

If
a charitable
instant
bingo
organization

other
than a veteran's organization, a fraternal organization, or a
sporting organization conducted the
conducts

instant
bingo

or electronic instant bingo
,
the organization shall distribute one hundred per cent of the net
profit from the proceeds of the sale of instant bingo
or
electronic instant bingo
to
an organization described in division (V)(1) of section 2915.01 of
the Revised Code or to a department or agency of the federal
government, the state, or any political subdivision.

(2)
If a charitable instant bingo organization conducts electronic
instant bingo, the organization shall distribute one hundred per cent
of the amount it retains under division (D)(3)(a) of section 2915.093
of the Revised Code to an organization described in division (V)(1)
of section 2915.01 of the Revised Code or to a department or agency
of the federal government, the state, or any political subdivision.

(C)
Nothing in this section prohibits a veteran's organization, a
fraternal organization, or a sporting organization from distributing
any net profit from the proceeds of the sale of instant bingo or
electronic instant bingo to an organization that is described in
subsection 501(c)(3) of the Internal Revenue Code when the
organization that is described in subsection 501(c)(3) of the
Internal Revenue Code is one that makes donations to other
organizations and permits donors to advise or direct such donations
so long as the donations comply with requirements established in or
pursuant to subsection 501(c)(3) of the Internal Revenue Code.

Sec.
2915.13.
(A)
Subject to the requirements of sections 2915.14 and 2915.15 of the
Revised Code concerning electronic instant bingo, a veteran's
organization, a fraternal organization, or a sporting organization
authorized to conduct a bingo session pursuant to this chapter may
conduct instant bingo, electronic instant bingo, or both other than
at a bingo session under a type III license issued under section
2915.08 of the Revised Code if all of the following apply:

(1)
The veteran's organization, fraternal organization, or sporting
organization limits the sale of instant bingo or electronic instant
bingo to
twelve

sixteen

hours
during any day, provided that the sale does not begin earlier than

ten

eight

a.m.
and ends not later than two a.m.

(2)
The veteran's organization, fraternal organization, or sporting
organization limits the sale of instant bingo or electronic instant
bingo to
its
own premises
one
location, which shall be its principal place of business,
and
to its own members and invited guests.

(3)
The veteran's organization, fraternal organization, or sporting
organization is raising money for an 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 maintains its principal place of business in this state, 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 in good standing in this state and executes a written
contract with that organization as required in division (B) of this
section.

(B)
If a veteran's organization, fraternal organization, or sporting
organization authorized to conduct instant bingo or electronic
instant bingo pursuant to division (A) of this section is raising
money for another 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 maintains its
principal place of business in this state, 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 in
good standing in this state, the veteran's organization, fraternal
organization, or sporting organization shall execute a written
contract with the 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 maintains its
principal place of business in this state, 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 in
good standing in this state in order to conduct instant bingo or
electronic instant bingo. That contract shall include a statement of
the percentage of the net proceeds that the veteran's, fraternal, or
sporting organization will be distributing to the 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 maintains its principal place of business in this
state, 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 in good standing in this state.

(C)(1)
If a veteran's organization, fraternal organization, or sporting
organization authorized to conduct instant bingo or electronic
instant bingo pursuant to division (A) of this section has been
issued a liquor permit under Chapter 4303. of the Revised Code, that
permit may be subject to suspension, revocation, or cancellation if
the veteran's organization, fraternal organization, or sporting
organization violates a provision of this chapter.

(2)
No veteran's organization, fraternal organization, or sporting
organization that enters into a written contract pursuant to division
(B) of this section shall violate any provision of this chapter or
permit, aid, or abet any other person in violating any provision of
this chapter.

(D)
A veteran's organization, fraternal organization, or sporting
organization shall give all required proceeds earned from the conduct
of instant bingo or electronic instant bingo to the organization with
which the veteran's organization, fraternal organization, or sporting
organization has entered into a written contract.

(E)
Whoever violates this section is guilty of illegal instant bingo or
electronic instant bingo conduct. Except as otherwise provided in
this division, illegal instant bingo or electronic instant bingo
conduct is a misdemeanor of the first degree. If the offender
previously has been convicted of a violation of this section, illegal
instant bingo or electronic instant bingo conduct is a felony of the
fifth degree.

Sec.
2915.14.
(A)

No

A

charitable
organization
shall

may

conduct
electronic instant bingo
unless
all of
only
if one of
the
following

are true

applies
:

(1)

The
organization is a charitable instant bingo organization that conducts
electronic instant bingo other than at a bingo session pursuant to
section 2915.093 of the Revised Code under a type III license issued
under section 2915.08 of the Revised Code.

(2)
The organization is a veteran's organization or fraternal
organization that conducts electronic instant bingo under a type II
or type III license issued under section 2915.08 of the Revised Code
and all of the following are true:

(a)

The
organization is a veteran's organization described in division (J) of
section 2915.01 of the Revised Code, or is a fraternal organization
described in division (L) of section 2915.01 of the Revised Code, and
the organization qualified as a veteran's organization or fraternal
organization, as applicable, on or before June 30, 2021.

(2)

(b)

The
organization is a veteran's organization described in subsection
501(c)(4) of the Internal Revenue Code or 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 is described in
subsection 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) of the
Internal Revenue Code.

(3)

(c)

The
organization has not conducted a raffle in violation of division (B)
of section 2915.092 of the Revised Code using an electronic raffle
machine, as described in Ohio Veterans and Fraternal Charitable
Coalition v. DeWine, Case No. 13-CV-13610 (C.P. Franklin Co. February
23, 2018), at any time on or after January 1, 2022.

(B)
No charitable organization that conducts electronic instant bingo
,
and no instant bingo host that assists a charitable instant bingo
organization in conducting electronic instant bingo,

shall do any of the following:

(1)
Possess an electronic instant bingo system that was not obtained in
accordance with this chapter or with any rule adopted under this
chapter;

(2)
Conduct electronic instant bingo on any day, at any time, or on any
premises not specified on the organization's type II or type III
license issued under section 2915.08 of the Revised Code;

(3)
Hold more than one valid license to conduct electronic instant bingo
at any one time
;

.
This division does not apply to an instant bingo host.

(4)
Conduct electronic instant bingo on more than one premises or on any
premises other than the charitable organization's principal place of
business;

(5)
Operate
(5)(a)
In the case of a veteran's organization or fraternal organization,
operate
more
than ten electronic
instant

bingo
systems at the premises on which
the
charitable organization
it

conducts
electronic instant bingo under its license;

(b)
In the case of a charitable instant bingo organization or an instant
bingo host, operate more than seven electronic instant bingo systems
at any one location;

(6)
Fail to display both of the following conspicuously at the premises
on which the charitable organization conducts electronic instant
bingo:

(a)
The charitable organization's bingo license;

(b)
The serial number of each deal of electronic instant bingo tickets
being sold.

(7)
Permit any person the charitable organization
or
instant bingo host
knows,
or should have known, to be under eighteen years of age to play
electronic instant bingo;

(8)
Sell or provide to any person an electronic instant bingo ticket for
a price different from the price displayed on the game flare for that
deal, except that the charitable organization
or
instant bingo host
may
give a participant who wins an electronic instant bingo game an
electronic instant bingo ticket as a prize in place of a cash prize;

(9)
Fail, once an electronic instant bingo deal is begun, to continue to
sell tickets in that deal until all prizes have been awarded;

(10)
Permit any person whom the
charitable

organization

or
instant bingo host
knows,
or should have known, has been convicted of a felony or gambling
offense in any jurisdiction to be a bingo game operator in the
conduct of electronic instant bingo;

(11)
Permit a bingo game operator to play electronic instant bingo;

(12)(a)
Except as otherwise provided in
division

divisions

(B)(12)(b)

and
(c)
of
this section, pay compensation to a bingo game operator for
conducting electronic instant bingo.

(b)
Division (B)(12)(a) of this section does not prohibit an employee of
a veteran's organization or fraternal organization from redeeming
electronic instant bingo tickets or vouchers for the organization's
members or invited guests, so long as no portion of the employee's
compensation is paid from any bingo receipts.

(c)
Division (B)(12)(a) of this section does not apply to an instant
bingo host.

(13)
Pay consulting fees to any person in relation to electronic instant
bingo.

(C)
No person shall sell, offer to sell, or otherwise provide or offer to
provide an electronic instant bingo system to any person for use in
this state unless the electronic instant bingo system has been
approved under section 2915.15 of the Revised Code.

(D)
The attorney general shall adopt rules under Chapter 119. of the
Revised Code to ensure the integrity of electronic instant bingo,
including, but not limited to, rules governing all of the following:

(1)
The requirements to receive a license or endorsement to conduct
electronic instant bingo;

(2)
The location and number of electronic instant bingo systems in use,

which shall not exceed ten at the single licensed location per
organization

subject to division (B)(5) of this section
;

(3)
The times when electronic instant bingo may be offered
,
subject to division (B)(4) of this section
;

(4)
Signage requirements in facilities where electronic instant bingo is
offered;

(5)
Electronic instant bingo device and system specifications, including
reveal features and game themes;

(6)
Procedures and standards for the review, approval, inspection, and
monitoring of electronic instant bingo systems, as described in
section 2915.15 of the Revised Code;

(7)
Procedures and standards for the review and approval of any changes
to technology, systems, or games licensed or permitted under this
chapter;

(8)
The fees to be charged under section 2915.15 of the Revised Code for
review, approval, inspection, and monitoring of electronic instant
bingo systems;

(9)
Procedures allowing the attorney general to seek a summary suspension
of a license to conduct electronic instant bingo or a license to
manufacture or distribute electronic instant bingo systems if the
attorney general has good cause to believe that the person or
organization licensed to conduct electronic instant bingo, or the
person or organization licensed to manufacture or distribute
electronic instant bingo systems, or any of the organization's
employees, officers, directors, agents, representatives, or partners,
has violated this chapter or a rule adopted under this chapter.

(E)
Whoever knowingly violates division (A), (B), or (C) of this section
or a rule adopted under division (D) of this section is guilty of
illegal electronic instant bingo conduct. Illegal electronic instant
bingo conduct is a misdemeanor of the first degree, except that if
the offender previously has been convicted of a violation of division
(A) or (B) of this section or of a rule adopted under division (D) of
this section, illegal instant bingo conduct is a felony of the fifth
degree.

Sec.
3770.06.
(A)
There is hereby created the state lottery gross revenue fund, which
shall be in the custody of the treasurer of state but shall not be
part of the state treasury. All gross revenues received from sales of
lottery tickets, fines, fees, and related proceeds in connection with
the statewide lottery, all gross proceeds of lottery sports gaming
described in sections 3770.23 to 3770.25 of the Revised Code, and all
gross proceeds from statewide joint lottery games shall be deposited
into the fund. The treasurer of state shall invest any portion of the
fund not needed for immediate use in the same manner as, and subject
to all provisions of law with respect to the investment of, state
funds. The treasurer of state shall disburse money from the fund on
order of the director of the state lottery commission or the
director's designee.

Except
for gross proceeds from statewide joint lottery games, all revenues
of the state lottery gross revenue fund that are not paid to holders
of winning lottery tickets, that are not required to meet short-term
prize liabilities, that are not credited to lottery sales agents in
the form of bonuses, commissions, or reimbursements, that are not
paid to financial institutions to reimburse those institutions for
sales agent nonsufficient funds, and that are collected from sales
agents for remittance to insurers under contract to provide sales
agent bonding services shall be transferred to the state lottery
fund, which is hereby created in the state treasury. In addition, all
revenues of the state lottery gross revenue fund that represent the
gross proceeds from the statewide joint lottery games and that are
not paid to holders of winning lottery tickets, that are not required
to meet short-term prize liabilities, that are not credited to
lottery sales agents in the form of bonuses, commissions, or
reimbursements, and that are not necessary to cover operating
expenses associated with those games or to otherwise comply with the
agreements signed by the governor that the director enters into under
division (J) of section 3770.02 of the Revised Code or the rules the
commission adopts under division (B)(5) of section 3770.03 of the
Revised Code shall be transferred to the state lottery fund. All
investment earnings of the fund shall be credited to the fund. Moneys
shall be disbursed from the fund pursuant to vouchers approved by the
director. Total disbursements for monetary prize awards to holders of
winning lottery tickets in connection with the statewide lottery,
other than lottery sports gaming, and purchases of goods and services
awarded as prizes to holders of winning lottery tickets shall be of
an amount equal to at least fifty per cent of the total revenue
accruing from the sale of lottery tickets.

(B)
Pursuant to Section 6 of Article XV, Ohio Constitution, there is
hereby established in the state treasury the lottery profits
education fund. Whenever, in the judgment of the director of the
state lottery commission, the amount to the credit of the state
lottery fund that does not represent proceeds from statewide joint
lottery games is in excess of that needed to meet the maturing
obligations of the commission and as working capital for its further
operations, the director of the state lottery commission shall
recommend the amount of the excess to be transferred to the lottery
profits education fund, and the director of budget and management may
transfer the excess to the lottery profits education fund in
connection with the statewide lottery. In addition, whenever, in the
judgment of the director of the state lottery commission, the amount
to the credit of the state lottery fund that represents proceeds from
statewide joint lottery games equals the entire net proceeds of those
games as described in division (B)(5) of section 3770.03 of the
Revised Code and the rules adopted under that division, the director
of the state lottery commission shall recommend the amount of the
proceeds to be transferred to the lottery profits education fund, and
the director of budget and management may transfer those proceeds to
the lottery profits education fund. Investment earnings of the
lottery profits education fund shall be credited to the fund.
Money
derived from the net retailer video lottery terminal income under
division (B)(1) of section 3770.38 of the Revised Code shall be
credited to the lottery profits education fund pursuant to division
(B)(3) of section 3770.38 of the Revised Code.

The
lottery profits education fund shall be used solely for the support
of elementary, secondary, vocational, and special education programs
as determined in appropriations made by the general assembly, or as
provided in applicable bond proceedings for the payment of debt
service on obligations issued to pay costs of capital facilities,
including those for a system of common schools throughout the state
pursuant to section 2n of Article VIII, Ohio Constitution. When
determining the availability of money in the lottery profits
education fund, the director of budget and management may consider
all balances and estimated revenues of the fund.

(C)
There is hereby established in the state treasury the deferred prizes
trust fund. With the approval of the director of budget and
management, an amount sufficient to fund annuity prizes shall be
transferred from the state lottery fund and credited to the trust
fund. The treasurer of state shall credit all earnings arising from
investments purchased under this division to the trust fund. Within
sixty days after the end of each fiscal year, the treasurer of state
shall certify to the director of budget and management whether the
actuarial amount of the trust fund is sufficient over the fund's life
for continued funding of all remaining deferred prize liabilities as
of the last day of the fiscal year just ended. Also, within that
sixty days, the director of budget and management shall certify the
amount of investment earnings necessary to have been credited to the
trust fund during the fiscal year just ending to provide for such
continued funding of deferred prizes. Any earnings credited in excess
of the latter certified amount shall be transferred to the lottery
profits education fund.

To
provide all or a part of the amounts necessary to fund deferred
prizes awarded by the commission in connection with the statewide
lottery, the treasurer of state, in consultation with the commission,
may invest moneys contained in the deferred prizes trust fund which
represents proceeds from the statewide lottery in obligations of the
type permitted for the investment of state funds but whose maturities
are thirty years or less. Notwithstanding the requirements of any
other section of the Revised Code, to provide all or part of the
amounts necessary to fund deferred prizes awarded by the commission
in connection with statewide joint lottery games, the treasurer of
state, in consultation with the commission, may invest moneys in the
trust fund which represent proceeds derived from the statewide joint
lottery games in accordance with the rules the commission adopts
under division (B)(5) of section 3770.03 of the Revised Code.
Investments of the trust fund are not subject to the provisions of
division (A)(11) of section 135.143 of the Revised Code limiting to
twenty-five per cent the amount of the state's total average
portfolio that may be invested in debt interests other than
commercial paper and limiting to five per cent the amount that may be
invested in debt interests, including commercial paper, of a single
issuer.

All
purchases made under this division shall be effected on a delivery
versus payment method and shall be in the custody of the treasurer of
state.

The
treasurer of state may retain an investment advisor, if necessary.
The commission shall pay any costs incurred by the treasurer of state
in retaining an investment advisor.

(D)
The auditor of state shall conduct annual audits of all funds and any
other audits as the auditor of state or the general assembly
considers necessary. The auditor of state may examine all records,
files, and other documents of the commission, and records of lottery
sales agents that pertain to their activities as agents, for purposes
of conducting authorized audits.

(E)
The state lottery commission shall establish an internal audit plan
before the beginning of each fiscal year, subject to the approval of
the office of internal audit in the office of budget and management.
At the end of each fiscal year, the commission shall prepare and
submit an annual report to the office of internal audit for the
office's review and approval, specifying the internal audit work
completed by the end of that fiscal year and reporting on compliance
with the annual internal audit plan.

(F)
Whenever, in the judgment of the director of budget and management,
an amount of net state lottery proceeds is necessary to be applied to
the payment of debt service on obligations, all as defined in
sections 151.01 and 151.03 of the Revised Code, the director shall
transfer that amount directly from the state lottery fund or from the
lottery profits education fund to the bond service fund defined in
those sections. The provisions of this division are subject to any
prior pledges or obligation of those amounts to the payment of bond
service charges as defined in division (C) of section 3318.21 of the
Revised Code, as referred to in division (B) of this section.

Sec.
3770.31.
As
used in sections 3770.31 to 3770.41 of the Revised Code:

(A)
"Gray area device" means any electrical or
electro-mechanical video machine that meets all of the following:

(1)
Is not licensed or approved under sections 3770.31 to 3770.41 of the
Revised Code;

(2)
Upon insertion of coins, cash, or tokens is available to play or
simulate the play of draw poker, keno, blackjack, spinning reel, or
any other similar game that awards coins, cash, or credits;

(3)
Contains a circuit component, meter, or switch capable of recording
the removal of coins, cash, or credits earned or received by the
player.

(B)
"Net retailer video lottery terminal income" means the
amount of money put into a retailer video lottery terminal by players
minus the amount paid out to winning players.

(C)
"Net retailer video lottery terminal operator income" means
the net retailer video lottery terminal income minus the amount paid
to the state pursuant to division (B) of section 3770.38 of the
Revised Code, and any computer and telephone line or service charges
attributable to the retailer video lottery terminal.

(D)
"Service employee" means an employee of a licensed retailer
video lottery terminal operator who is certified and has submitted to
a criminal background check under division (D) of section 3770.35 of
the Revised Code to service and repair a retailer video lottery
terminal.

(E)
"Retailer video lottery terminal" means an electronic video
game machine that utilizes a microprocessor and is, upon the
insertion of money, capable of playing or simulating the play of
video poker, keno, blackjack, spinning reel, and any other similar
game authorized by rule of the state lottery commission, in which, by
chance, the player of the machine may receive free games or credits
that are redeemable for money, but does not include:

(1)
Any such machine that directly dispenses money or tokens;

(2)
Video lottery terminals as defined by division (A)(1) of section
3770.21 of the Revised Code.

(F)
"Retailer video lottery terminal distributor" means any
person who purchases retailer video lottery terminals from a retailer
video lottery terminal manufacturer and who sells or distributes the
terminals to a retailer video lottery terminal operator in this
state.

(G)
"Retailer video lottery terminal establishment" means a
single premises owned or managed by any person who is a licensed
lottery sales agent or is eligible to receive a lottery sales agent
license;

(H)
"Retailer video lottery terminal manufacturer" means any
person who manufactures, assembles, or produces a retailer video
lottery terminal for sale to a retailer video lottery terminal
distributor in this state.

(I)
"Retailer video lottery terminal operator" means any person
who owns or operates a retailer video lottery terminal in this state
for placement in a video lottery gaming establishment.

Sec.
3770.32.
Except
as provided in sections 3770.31 to 3770.41 of the Revised Code, no
person shall do any of the following:

(A)
Unless licensed as a retailer video lottery terminal manufacturer,
manufacture, assemble, or produce a retailer video lottery terminal
for sale in this state;

(B)
Unless licensed as a retailer video lottery terminal distributor,
distribute or sell a retailer video lottery terminal in this state;

(C)
Unless licensed as a retailer video lottery terminal operator, own,
possess, or operate a retailer video lottery terminal for use by
players in this state;

(D)
Tamper with a retailer video lottery terminal with the intent to
interfere with the proper operation of the terminal or with the
intent to manipulate the outcome, payoff, or operation of the
terminal;

(E)
Play a retailer video lottery terminal if under twenty-one years of
age or permit any person under twenty-one years of age to play a
retailer video lottery terminal;

(F)
Operate or play a retailer video lottery terminal in any place that
is not a licensed retailer video lottery terminal establishment;

(G)
Being a licensed retailer video lottery terminal operator, do either
of the following:

(1)
Own, operate, or possess for use by players a retailer video lottery
terminal without prominently displaying a current certification of
inspection issued pursuant to sections 3770.31 to 3770.41 of the
Revised Code;

(2)
Knowingly submit a false report or fail to report any amount due
pursuant to division (B) of section 3770.38 of the Revised Code.

Sec.
3770.33.
(A)
The state lottery commission in conjunction with the Ohio casino
control commission and the director of the state lottery commission
shall administer and enforce sections 3770.31 to 3770.41 of the
Revised Code and the rules adopted under those sections. The state
lottery commission in consultation with executive director of the
Ohio casino control commission shall adopt rules, in accordance with
Chapter 119. of the Revised Code, for the implementation,
administration, and enforcement of sections 3770.31 to 3770.41 of the
Revised Code, which shall include all of the following:

(1)
The retailer video lottery terminals that may be operated in a
licensed retailer video lottery terminal establishment in this state;

(2)
The maximum number of retailer video lottery terminals to be placed
in a licensed retailer video lottery terminal establishment, provided
that not more than three terminals shall be placed in any one
licensed retailer video lottery terminal establishment in the first
twelve months subsequent to the effective date of this section, with
up to five machines permitted thereafter. The rules shall require
that state-certified inspections certify each terminal upon its
placement in the licensed retailer video lottery terminal
establishment and at least biannually thereafter. The rules shall not
require any retailer video lottery terminal establishment or retailer
video lottery terminal operator to place, install, or maintain any
retailer video lottery terminal in any establishment, provided that
the establishment or operator may not place, install, or maintain
more terminals than permitted by this division.

(3)
Fees to be assessed upon a retailer video lottery terminal
manufacturer or any other person who seeks approval of prototypes of
retailer video lottery terminals for use in this state. The fees the
state lottery commission assesses shall equal the actual costs of the
examination of the prototype. The manufacturer or person seeking
approval shall pay the commission the fees in advance of the
approval. The rules also shall include a requirement that, if the fee
the commission assesses is less than the actual costs of the
examination, the manufacturer or person seeking approval is liable
for the extra costs, and if the assessed fee is greater than the
actual costs, the manufacturer or person seeking approval is entitled
to a refund of the difference.

(4)
The monetary amount required for licensure as a retailer video
lottery terminal operator pursuant to division (B)(2)(a) of section
3770.34 of the Revised Code;

(5)
Requirements for the initial and continuing background investigations
conducted on licenses and applicants for licensure and certification;

(6)
Requirements for the central communications system described in
division (C) of section 3770.35 of the Revised Code;

(7)
The information to be maintained confidential pursuant to section
3770.40 of the Revised Code, and methods to assure confidentiality of
that information;

(8)
Procedures for the investigation of allegations of violations of
sections 3770.31 to 3770.41 of the Revised Code and the rules adopted
under those sections and for inspection and investigation of all
persons licensed under those sections. The rules shall include a
requirement that any licensee shall permit the officers, employees,
and agents of the state lottery commission and Ohio casino control
commission to enter and inspect the licensee's place of business and
retailer video lottery terminal records during normal business hours.
The rules shall include a schedule of fines for knowing violations by
a retailer video lottery terminal establishment or operator.

(9)
Procedures for the suspension and revocation of and the refusal to
issue or renew a license or certification issued under sections
3770.31 to 3770.41 of the Revised Code, in addition to any reason set
forth in those sections. The rules shall include the reasons for and
duration of any suspension or revocation and shall ensure that the
procedures comply with due process of law.

(10)
A process for determining what constitutes good taste and what
constitutes a negative impact or affects the integrity of the
retailer video lottery terminal industry under section 3770.35 of the
Revised Code;

(11)
All of the following requirements:

(a)
A retailer video lottery terminal establishment shall operate a video
surveillance system to monitor each retailer video lottery terminal
located on the retailer video lottery terminal establishment's
premises.

(b)
A retailer video lottery terminal establishment shall maintain
retailer video lottery terminal surveillance footage for thirty days
and delete the footage after the thirty-day period.

(c)
A retailer video lottery terminal establishment's retailer video
lottery terminal video surveillance system shall not make use of any
facial recognition technology or software.

(d)
A retailer video lottery terminal establishment shall provide
retailer video lottery terminal video surveillance footage to the
retailer video lottery terminal operator upon the operator's request.

(e)
A retailer video lottery terminal establishment shall maintain all
retailer video lottery terminals within an area segregated from the
general area of the establishment and within sight of personnel at
all times.

(f)
A retailer video lottery terminal establishment shall have a key
employee certified by the Ohio casino control commission trained in
recognizing underage and problem gaming onsite at all times while the
establishment is open to the public.

(12)
The requirement that a retailer video lottery terminal ticket voucher
shall only be redeemed through a self-service device that is linked
to the central communications system described in division (C) of
section 3770.35 of the Revised Code. The rules shall include the
requirement that such self-service devices shall, upon authorization
by the central communications system, redeem a ticket voucher in the
form of cash.

(B)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under sections 3770.31 to 3770.41 of the Revised Code is not subject
to sections 121.95 to 121.953 of the Revised Code.

Sec.
3770.34.
(A)
Any person who desires to apply for a retailer video lottery terminal
manufacturer, retailer video lottery terminal distributor, retailer
video lottery terminal operator, or retailer video lottery terminal
establishment license shall file a written application with the Ohio
casino control commission, on forms provided by the Ohio casino
control commission in consultation with the state lottery commission.
The application shall include the applicable fees established in
section 3770.38 of the Revised Code and contain information
satisfactory to the Ohio casino control commission that the applicant
meets the requirements of this section and the rules adopted by the
state lottery commission pursuant to section 3770.33 of the Revised
Code for the specific license for which application is made.

(B)(1)
To receive a retailer video lottery terminal distributor license, the
person also shall have maintained, for at least five years
immediately preceding application for licensure, a distribution
center that included warehouse, service, and parts facilities.

(2)
To receive a retailer video lottery terminal operator license, the
person also shall meet all of the following requirements:

(a)
Demonstrate, to the satisfaction of the Ohio casino control
commission, that the applicant has sufficient funding to pay the
annual license renewal fee established in section 3770.38 of the
Revised Code;

(b)
File with the Ohio casino control commission a surety bond, payable
to the state in the amount of one hundred thousand dollars issued by
a bonding company licensed to do business in this state. The bond
shall be in the form specified by the commission and conditioned upon
the operator's compliance with sections 3770.31 to 3770.41 of the
Revised Code and the rules adopted under those sections.

(c)
Every applicant for a license under this section shall, as a
condition of receiving the license and a renewal, submit to an
initial and continuing background investigations conducted by the
Ohio casino control commission under rules the commission adopts. For
purposes of the background investigation, the commission may
investigate the person applying for the license and every partner of
a partnership, every member of any association, and every stockholder
holding five per cent or more stock in, and every director and
officer of, an applicant or licensee that is a corporation.

(C)
Except as provided in divisions (E) and (F) of this section, if the
applicant for licensure meets the qualifications of this section and
the background investigation to the satisfaction of the Ohio casino
control commission, the commission shall issue the applicant the
appropriate license for which the application is made.

(D)
Each license issued under this section expires two years after the
date of issue. Each person holding a valid, unexpired license may
renew a license by applying to the Ohio casino control commission
within ninety days of the expiration of the license and submitting
with the application the renewal fee established pursuant to section
3770.38 of the Revised Code.

(E)
The Ohio casino control commission shall not issue or renew any
license under this section to any applicant who meets any of the
following conditions:

(1)
Has been convicted of a felony in this state or another state unless
at least ten years have passed since the satisfactory completion of
the sentence or probation imposed by a court with competent
jurisdiction;

(2)
Has been found guilty of violating any provision of sections 3770.31
to 3770.41 of the Revised Code or any rule adopted pursuant thereto;

(3)
Is an officer, employee, or a member of the immediate family, as
defined in section 5126.01 of the Revised Code, of any officer or
employee of the Ohio casino control commission or the state lottery
commission;

(4)
Has knowingly made a false statement of material fact to the Ohio
casino control commission or the state lottery commission.

(F)
No licensed retailer video lottery terminal manufacturer may be
licensed as a retailer video lottery terminal operator or retailer
video lottery terminal distributor, operator, or establishment. No
licensed retailer video lottery terminal distributor may be licensed
as a retailer video lottery terminal manufacturer, operator, or
establishment. No licensed retailer video lottery terminal operator
may be licensed as a retailer video lottery terminal manufacturer,
distributor, or establishment. No licensed retailer video lottery
terminal establishment may be licensed as a retailer video lottery
terminal manufacturer, distributor, or operator.

(G)
The Ohio casino control commission shall not issue any license under
section 3770.31 to 3770.41 of the Revised Code to the state or any
political subdivision thereof or any instrumentality of either.

Sec.
3770.35.
(A)
No retailer video lottery terminal operator shall do either of the
following:

(1)
Enter into an agreement with any person to manage, control, operate,
or service its retailer video lottery terminal business activity
unless that person is licensed or certified, as applicable, under
sections 3770.31 to 3770.41 of the Revised Code;

(2)
Place for use in a retailer video lottery terminal establishment or
own or operate a retailer video lottery terminal unless the operator
and terminal meet all of the following requirements:

(a)
The terminal is separately certified and maintained pursuant to
division (D) of this section and the rules of the state lottery
commission.

(b)
The retailer video lottery terminal establishment holds a current
retailer video lottery terminal establishment license issued pursuant
to sections 3770.31 to 3770.41 of the Revised Code.

(c)
The terminal has no means of manipulation that affect the random
probabilities of winning on a retailer video lottery terminal.

(d)
The terminal has one or more mechanisms that accept money in the form
of bills and that are designed to prevent obtaining credits without
paying by attaching string or other material to a coin or bill with
the object of retrieving the coin or bill after it has been inserted
into the terminal; slamming, rocking, or tilting the terminal;
drilling into the terminal; or any other means.

(e)
If the terminal has been physically tampered with, the terminal has
been removed from use or reset.

(f)
The terminal has nonresettable meters housed in a readily accessible
locked area of the terminal that maintains a permanent record of all
money inserted into the terminal, all refunds of winnings made by the
terminal's printer, credits played for games, and credits won by
players.

(g)
The terminal is capable of printing a ticket voucher, which contains
all of the following:

(i)
The value of the prize for the player at the completion of the game;

(ii)
The time of day in a twenty-four hour format showing the hours and
minutes;

(iii)
The date;

(iv)
The serial number of the machine;

(v)
The sequential number of the ticket vouchers;

(vi)
An encrypted validation number from which the validity of the prize
may be determined.

(h)
The terminal is linked to the central communication system that the
Ohio casino control commission maintains pursuant to division (C) of
this section, and that terminal and linkage comply with the rules
adopted under this section.

(i)
The terminal allows a player to wager not more than four dollars in a
single game and awards free games or credit not to exceed two
thousand five hundred dollars.

(j)
The terminal has a payback value of one credit equalling a minimum of
eighty per cent.

(k)
The operator prominently displays the retailer video lottery terminal
certification issued pursuant to sections 3770.31 to 3770.41 of the
Revised Code on the terminal.

(l)
The operator keeps a list of all prizes awarded during each game
conducted on each terminal, the total prizes awarded from each game
by serial number, and the name, address, and social security number
of all persons who are winners of prizes of six hundred dollars or
more in value.

(B)
Every retailer video lottery terminal operator who desires to place
retailer video lottery terminals in a retailer video lottery terminal
establishment shall enter into a written contract with the
establishment and file a copy of the contract with the Ohio casino
control commission. The contract shall contain at least the following
information or provisions:

(1)
The length of the contract, which shall be for a term of at least
five years;

(2)
The amount the operator will pay the establishment from the net
retailer video lottery terminal operator income for each terminal,
which amount shall be fifty per cent for each terminal.

(C)
Not later than nine months after the effective date of this section,
the Ohio casino control commission shall implement and maintain a
central communication system to provide an auditing program for each
retailer video lottery terminal in the state and to link every
terminal in the state to the central communication system. The
commission shall ensure that the central communication system is able
to communicate with each retailer video lottery terminal lawfully
operated in the state. Nothing in this division shall be construed as
requiring a retailer video lottery terminal to be in constant
communication with the central communication system or to be online.

(D)
Each retailer video lottery terminal operator shall provide training
approved by the Ohio casino control commission in the service and
repair of the particular terminal sold or distributed. Each operator
shall certify, in the form and manner the commission requires, to the
commission that the training has been provided and shall provide the
names of the service employees who have attended and successfully
completed the training program. In order to successfully complete the
training program, a person also shall submit to a criminal background
check. Upon receipt of the information from the retailer video
lottery terminal operator, the Ohio casino control commission shall
issue a certificate to each person who has attended and successfully
completed the required training that signifies that the person is
certified to service and repair retailer video lottery terminals of
the particular manufacturer and model for which the training was
provided. No person other than a person certified under this division
shall service or repair a retailer video lottery terminal. No
retailer video lottery terminal shall be placed in a licensed
retailer video lottery terminal establishment for use by players
until the retailer video lottery terminal distributor provides the
training required by this division.

Sec.
3770.36.
(A)
No person licensed under sections 3770.31 to 3770.41 of the Revised
Code shall advertise any matter related to retailer video lottery
terminals or the retailer video lottery terminal industry by any of
the following methods:

(1)
Printed signs, marquees, permanent or portable signs, billboards, or
any other means of lighted, printed, or pictorial outdoor
advertising;

(2)
Flyers or other types of hand-out materials advertising retailer
video lottery terminals or the retailer video lottery terminal
industry to the general public;

(3)
Voiced or visually transmitted advertising through radio or
television;

(4)
Use of any advertisement that refers to payoff percentages.

(B)
Except as provided in divisions (A) and (C) of this section, a person
licensed under sections 3770.31 to 3770.41 of the Revised Code may
advertise any matter related to retailer video lottery terminals or
the retailer video lottery terminal industry by any of the following
methods:

(1)
Client letter mailings, newsletters, business cards, and
advertisements in the print media, provided that the advertisements
are presented in good taste as determined by the state lottery
commission, and in a manner that will not have a negative impact or
affect the integrity of the retailer video lottery terminal industry
as determined by the state lottery commission;

(2)
Indoor advertising at a licensed retailer video lottery terminal
establishment, provided that the advertising is consistent with
generally accepted indoor advertising and is in good taste as
determined by the state lottery commission so as not to compromise
the morals of the public or affect the integrity of the retailer
video lottery terminal industry as determined by the state lottery
commission.

(C)
No licensee shall place any indoor advertising permitted under
division (B) of this section or any retailer video lottery terminal
directly in the windows or doors of the licensed retailer video
lottery terminal establishment. The licensee shall place the
advertisements and terminals in the establishment in a manner that a
reasonable person would believe to be directed toward patrons on the
premises and not passersby outside the establishment.

Sec.
3770.37.
No
retailer video lottery terminal establishment shall accept from any
retailer video lottery terminal manufacturer, retailer video lottery
terminal distributor, or any other person, and no retailer video
lottery terminal manufacturer, retailer video lottery terminal
distributor, or any other person shall offer or give to a retailer
video lottery terminal establishment any premiums, gifts, equipment,
discounts, rebates, kickbacks, or loans, either in money,
merchandise, or other item of value, based upon the installation,
use, or sale of a retailer video lottery terminal or for any other
reason in connection with a retailer video lottery terminal.

Sec.
3770.38.
(A)
The Ohio casino control commission shall collect the following fees
for licensure under this section:

(1)
The initial license fee for a retailer video lottery terminal
manufacturer of one hundred thousand dollars, and the biennial
renewal thereof of twenty-five thousand dollars;

(2)
The initial license fee for a retailer video lottery terminal
distributor of seventy-five thousand dollars, and the biennial
renewal thereof of ten thousand dollars;

(3)
The initial license fee for a retailer video lottery terminal
operator of fifty thousand dollars, and the biennial renewal thereof
of ten thousand dollars;

(4)
The initial and biennial license fee for a retailer video lottery
terminal establishment, five hundred dollars.

(B)(1)
The state lottery commission shall receive thirty-five per cent of
the net retailer video lottery terminal income from each retailer
video lottery terminal. Net retailer video lottery terminal operator
income shall be divided evenly between the retailer video lottery
terminal operator and the retailer video lottery terminal
establishment where the retailer video lottery terminal is located.

(2)
Each retailer video lottery terminal operator shall maintain a
separate account in a bank or financial institution for the purpose
of the deposit of the amount of net retailer video lottery terminal
income the operator is required to pay to the state lottery
commission under division (B) of this section. The account shall
permit electronic transfer of funds to the commission. Pursuant to
the rules of the commission, each retailer video lottery terminal
operator shall report and remit by electronic transfer the amount the
commission determines due to the commission under division (B) of
this section.

(C)
The holder of a current and valid retailer video lottery terminal
license may transfer the license to any other certified retailer
video lottery terminal without payment of an additional fee upon
notification to the commission.

Sec.
3770.39.
(A)
The director of the state lottery commission, under rules the
commission adopts, shall investigate any allegation against any
person who has engaged in, threatened to engage in, or is engaging in
any violation of sections 3770.31 to 3770.41 of the Revised Code or
the rules adopted under those sections. If the director determines
that any person has violated, is threatening to violate, or is
violating any provision of those sections or the rules adopted under
those sections, the director may request the attorney general or
prosecuting attorney of the county in which the alleged violation
occurred, is threatening to occur, or is occurring for an injunction
and any other appropriate relief to restrain the act. In addition,
the director may request the attorney general or prosecuting attorney
to prosecute any person who has violated those sections or the rules
adopted under those sections. Upon the director's request, the
attorney general shall take whatever steps are necessary to initiate
the action in the court of common pleas and to prosecute the
offending person.

(B)
No person shall own or operate any retailer video lottery terminal
without a license or any other device, including any gray area
device, designed or used for gambling that is not authorized under
the Revised Code. If any law enforcement agency determines that
probable cause exists that any person has violated this division, the
agency shall initiate procedures to seize and hold the terminal or
device pursuant to Chapter 2981. of the Revised Code. If the state
lottery commission determines that probable cause exists that any
person has violated this division, the state lottery commission shall
contract with the Ohio casino control commission, attorney general,
or any law enforcement agency to initiate procedures to seize and
hold the terminal or device pursuant to Chapter 2981. of the Revised
Code. Upon issuance of a final order from a court of competent
jurisdiction finding that a person is guilty of violating this
section, the agency, applicable commission, or attorney general shall
promptly destroy any terminal or device seized in relation to the
violation.

Sec.
3770.40.
Notwithstanding
section 149.43 of the Revised Code, information and records obtained
under sections 3770.31 to 3770.41 of the Revised Code and the rules
adopted under those sections of the state lottery commission and its
officers, employees, and agents are confidential and shall not be
disclosed except in accordance with a judicial proceeding or as
permitted by the rules of the director of the state lottery
commission.

Sec.
3770.41.
The
state, through the state lottery commission, and in accordance with
sections 3770.31 to 3770.41 of the Revised Code, shall solely
regulate persons licensed under those sections and the manner in
which any licensee conducts business. By the enactment of these
sections, it is the intent of the general assembly to preempt
municipal corporations and other political subdivisions from the
regulation, licensing, or registration of, the establishment of rules
or standards for, and the collection of any tax, fee, or assessments
from persons licensed under this chapter. This section does not
prohibit the imposition of taxes under Chapter 718. of the Revised
Code.

Sec.
3770.99.
(A)
Whoever is prohibited from claiming a lottery prize award under
division (E) of section 3770.07 of the Revised Code and attempts to
claim or is paid a lottery prize award is guilty of a minor
misdemeanor, and shall provide restitution to the state lottery
commission of any moneys erroneously paid as a lottery prize award to
that person.

(B)
Whoever violates section 3770.08
or
division (E), (F), or (G)(1) of section 3770.32
of
the Revised Code is guilty of a misdemeanor of the third degree.

(C)
Whoever violates division (A), (B), (C), (D), or (G)(2) of section
3770.32, division (B) of section 3770.38, or section 3770.32 of the
Revised Code is guilty of a felony of the third degree.

(D)
Whoever violates any provision of sections 3770.31 to 3770.41 of the
Revised Code for which a specific penalty is not set under this
section is guilty of a misdemeanor of the third degree.

(E)
A retailer video lottery terminal establishment or operator that
knowingly fails to report a violation of any provision of, or rule
adopted under, sections 3770.31 to 3770.41 of the Revised Code may be
subject to a fine as determined by the commission and the suspension
or revocation of the establishment's or operator's license issued
under sections 3770.31 to 3770.41 of the Revised Code in an
adjudication under Chapter 119. of the Revised Code.

Sec.
5739.02.
For
the purpose of providing revenue with which to meet the needs of the
state, for the use of the general revenue fund of the state, for the
purpose of securing a thorough and efficient system of common schools
throughout the state, for the purpose of affording revenues, in
addition to those from general property taxes, permitted under
constitutional limitations, and from other sources, for the support
of local governmental functions, and for the purpose of reimbursing
the state for the expense of administering this chapter, an excise
tax is hereby levied on each retail sale made in this state.

(A)(1)
The tax shall be collected as provided in section 5739.025 of the
Revised Code. The rate of the tax shall be five and three-fourths per
cent. The tax applies and is collectible when the sale is made,
regardless of the time when the price is paid or delivered.

(2)
In the case of the lease or rental, with a fixed term of more than
thirty days or an indefinite term with a minimum period of more than
thirty days, of any motor vehicles designed by the manufacturer to
carry a load of not more than one ton, watercraft, outboard motor, or
aircraft, or of any tangible personal property, other than motor
vehicles designed by the manufacturer to carry a load of more than
one ton, to be used by the lessee or renter primarily for business
purposes, the tax shall be collected by the vendor at the time the
lease or rental is consummated and shall be calculated by the vendor
on the basis of the total amount to be paid by the lessee or renter
under the lease agreement. If the total amount of the consideration
for the lease or rental includes amounts that are not calculated at
the time the lease or rental is executed, the tax shall be calculated
and collected by the vendor at the time such amounts are billed to
the lessee or renter. In the case of an open-end lease or rental, the
tax shall be calculated by the vendor on the basis of the total
amount to be paid during the initial fixed term of the lease or
rental, and for each subsequent renewal period as it comes due. As
used in this division, "motor vehicle" has the same meaning
as in section 4501.01 of the Revised Code, and "watercraft"
includes an outdrive unit attached to the watercraft.

A
lease with a renewal clause and a termination penalty or similar
provision that applies if the renewal clause is not exercised is
presumed to be a sham transaction. In such a case, the tax shall be
calculated and paid on the basis of the entire length of the lease
period, including any renewal periods, until the termination penalty
or similar provision no longer applies. The taxpayer shall bear the
burden, by a preponderance of the evidence, that the transaction or
series of transactions is not a sham transaction.

(3)
Except as provided in division (A)(2) of this section, in the case of
a sale, the price of which consists in whole or in part of the lease
or rental of tangible personal property, the tax shall be measured by
the installments of that lease or rental.

(4)
In the case of a sale of a physical fitness facility service or
recreation and sports club service, the price of which consists in
whole or in part of a membership for the receipt of the benefit of
the service, the tax applicable to the sale shall be measured by the
installments thereof.

(B)
The tax does not apply to the following:

(1)
Sales to the state or any of its political subdivisions, or to any
other state or its political subdivisions if the laws of that state
exempt from taxation sales made to this state and its political
subdivisions including either of the following:

(a)
Sales or rentals of tangible personal property by construction
contractors or subcontractors to provide temporary traffic control or
temporary structures, including material and equipment used to comply
with the Ohio manual of uniform traffic control devices adopted
pursuant to section 4511.09 of the Revised Code, whereby the state or
any of its political subdivisions take title to, or permanent or
temporary possession of, such tangible personal property for use by
the state or any of its political subdivisions, including for use by
the general public thereof;

(b)
Sales of services by construction contractors or subcontractors to
provide temporary traffic control or structures, including labor used
to comply with the Ohio manual of uniform traffic control devices
adopted pursuant to section 4511.09 of the Revised Code, whereby the
state or any of its political subdivisions, including the general
public thereof, receive the benefit of such services.

As
used in divisions (B)(1)(a) and (b) of this section, "temporary
structures" include temporary roads, bridges, drains, and
pavement.

(2)
Sales of food for human consumption off the premises where sold;

(3)
Sales of food sold to students only in a cafeteria, dormitory,
fraternity, or sorority maintained in a private, public, or parochial
school, college, or university;

(4)
Sales of newspapers and sales or transfers of magazines distributed
as controlled circulation publications;

(5)
The furnishing, preparing, or serving of meals without charge by an
employer to an employee provided the employer records the meals as
part compensation for services performed or work done;

(6)(a)
Sales of motor fuel upon receipt, use, distribution, or sale of which
in this state a tax is imposed by the law of this state, but this
exemption shall not apply to the sale of motor fuel on which a refund
of the tax is allowable under division (A) of section 5735.14 of the
Revised Code; and the tax commissioner may deduct the amount of tax
levied by this section applicable to the price of motor fuel when
granting a refund of motor fuel tax pursuant to division (A) of
section 5735.14 of the Revised Code and shall cause the amount
deducted to be paid into the general revenue fund of this state;

(b)
Sales of motor fuel other than that described in division (B)(6)(a)
of this section and used for powering a refrigeration unit on a
vehicle other than one used primarily to provide comfort to the
operator or occupants of the vehicle.

(7)
Sales of natural gas by a natural gas company or municipal gas
utility, of water by a water-works company, or of steam by a heating
company, if in each case the thing sold is delivered to consumers
through pipes or conduits, and all sales of communications services
by a telegraph company, all terms as defined in section 5727.01 of
the Revised Code, and sales of electricity delivered through wires;

(8)
Casual sales by a person, or auctioneer employed directly by the
person to conduct such sales, except as to such sales of motor
vehicles, watercraft or outboard motors required to be titled under
section 1548.06 of the Revised Code, watercraft documented with the
United States coast guard, snowmobiles, and all-purpose vehicles as
defined in section 4519.01 of the Revised Code;

(9)(a)
Sales of services or tangible personal property, other than motor
vehicles, mobile homes, and manufactured homes, by churches,
organizations exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986, or nonprofit organizations operated
exclusively for charitable purposes as defined in division (B)(12) of
this section, provided that the number of days on which such tangible
personal property or services, other than items never subject to the
tax, are sold does not exceed six in any calendar year, except as
otherwise provided in division (B)(9)(b) of this section. If the
number of days on which such sales are made exceeds six in any
calendar year, the church or organization shall be considered to be
engaged in business and all subsequent sales by it shall be subject
to the tax. In counting the number of days, all sales by groups
within a church or within an organization shall be considered to be
sales of that church or organization.

(b)
The limitation on the number of days on which tax-exempt sales may be
made by a church or organization under division (B)(9)(a) of this
section does not apply to sales made by student clubs and other
groups of students of a primary or secondary school, or a
parent-teacher association, booster group, or similar organization
that raises money to support or fund curricular or extracurricular
activities of a primary or secondary school.

(c)
Divisions (B)(9)(a) and (b) of this section do not apply to sales by
a noncommercial educational radio or television broadcasting station.

(10)
Sales not within the taxing power of this state under the
Constitution or laws of the United States or the Constitution of this
state including either of the following:

(a)
Sales or rentals of tangible personal property by construction
contractors or subcontractors to provide temporary traffic control or
temporary structures, including material and equipment used to comply
with the Ohio manual of uniform traffic control devices adopted
pursuant to section 4511.09 of the Revised Code, whereby the United
States takes title to, or permanent or temporary possession of, such
tangible personal property for use by the United States including for
use by the general public thereof;

(b)
Sales of services by construction contractors or subcontractors to
provide temporary traffic control or structures, including labor used
to comply with the Ohio manual of uniform traffic control devices
adopted pursuant to section 4511.09 of the Revised Code, whereby the
United States, including the general public thereof, receives the
benefit of such services.

As
used in divisions (B)(10)(a) and (b) of this section, "temporary
structures" include temporary roads, bridges, drains, and
pavement.

(11)
Except for transactions that are sales under division (B)(3)(p) of
section 5739.01 of the Revised Code, the transportation of persons or
property, unless the transportation is by a private investigation and
security service;

(12)
Sales of tangible personal property or services to churches, to
organizations exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986, and to any other nonprofit
organizations operated exclusively for charitable purposes in this
state, no part of the net income of which inures to the benefit of
any private shareholder or individual, and no substantial part of the
activities of which consists of carrying on propaganda or otherwise
attempting to influence legislation; sales to offices administering
one or more homes for the aged or one or more hospital facilities
exempt under section 140.08 of the Revised Code; and sales to
organizations described in division (D) of section 5709.12 of the
Revised Code.

"Charitable
purposes" means the relief of poverty; the improvement of health
through the alleviation of illness, disease, or injury; the operation
of an organization exclusively for the provision of professional,
laundry, printing, and purchasing services to hospitals or charitable
institutions; the operation of a home for the aged, as defined in
section 5701.13 of the Revised Code; the operation of a radio or
television broadcasting station that is licensed by the federal
communications commission as a noncommercial educational radio or
television station; the operation of a nonprofit animal adoption
service or a county humane society; the promotion of education by an
institution of learning that maintains a faculty of qualified
instructors, teaches regular continuous courses of study, and confers
a recognized diploma upon completion of a specific curriculum; the
operation of a parent-teacher association, booster group, or similar
organization primarily engaged in the promotion and support of the
curricular or extracurricular activities of a primary or secondary
school; the operation of a community or area center in which
presentations in music, dramatics, the arts, and related fields are
made in order to foster public interest and education therein; the
production of performances in music, dramatics, and the arts; or the
promotion of education by an organization engaged in carrying on
research in, or the dissemination of, scientific and technological
knowledge and information primarily for the public.

Nothing
in this division shall be deemed to exempt sales to any organization
for use in the operation or carrying on of a trade or business, or
sales to a home for the aged for use in the operation of independent
living facilities as defined in division (A) of section 5709.12 of
the Revised Code.

(13)
Building and construction materials and services sold to construction
contractors for incorporation into a structure or improvement to real
property under a construction contract with this state or a political
subdivision of this state, or with the United States government or
any of its agencies; building and construction materials and services
sold to construction contractors for incorporation into a structure
or improvement to real property that are accepted for ownership by
this state or any of its political subdivisions, or by the United
States government or any of its agencies at the time of completion of
the structures or improvements; building and construction materials
sold to construction contractors for incorporation into a
horticulture structure or livestock structure for a person engaged in
the business of horticulture or producing livestock; building
materials and services sold to a construction contractor for
incorporation into a house of public worship or religious education,
or a building used exclusively for charitable purposes under a
construction contract with an organization whose purpose is as
described in division (B)(12) of this section; building materials and
services sold to a construction contractor for incorporation into a
building under a construction contract with an organization exempt
from taxation under section 501(c)(3) of the Internal Revenue Code of
1986 when the building is to be used exclusively for the
organization's exempt purposes; tangible personal property sold for
incorporation into the construction of a sports facility under
section 307.696 of the Revised Code; building and construction
materials and services sold to a construction contractor for
incorporation into real property outside this state if such materials
and services, when sold to a construction contractor in the state in
which the real property is located for incorporation into real
property in that state, would be exempt from a tax on sales levied by
that state; building and construction materials for incorporation
into a transportation facility pursuant to a public-private agreement
entered into under sections 5501.70 to 5501.83 of the Revised Code;
until one calendar year after the construction of a convention center
that qualifies for property tax exemption under section 5709.084 of
the Revised Code is completed, building and construction materials
and services sold to a construction contractor for incorporation into
the real property comprising that convention center; and building and
construction materials sold for incorporation into a structure or
improvement to real property that is used primarily as, or primarily
in support of, a manufacturing facility or research and development
facility and that is to be owned by a megaproject operator upon
completion and located 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 the megaproject operator has an agreement for such 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.

(14)
Sales of ships or vessels or rail rolling stock used or to be used
principally in interstate or foreign commerce, and repairs,
alterations, fuel, and lubricants for such ships or vessels or rail
rolling stock;

(15)
Sales to persons primarily engaged in any of the activities mentioned
in division (B)(42)(a), (g), or (h) of this section, to persons
engaged in making retail sales, or to persons who purchase for sale
from a manufacturer tangible personal property that was produced by
the manufacturer in accordance with specific designs provided by the
purchaser, of packages, including material, labels, and parts for
packages, and of machinery, equipment, and material for use primarily
in packaging tangible personal property produced for sale, including
any machinery, equipment, and supplies used to make labels or
packages, to prepare packages or products for labeling, or to label
packages or products, by or on the order of the person doing the
packaging, or sold at retail. "Packages" includes bags,
baskets, cartons, crates, boxes, cans, bottles, bindings, wrappings,
and other similar devices and containers, but does not include motor
vehicles or bulk tanks, trailers, or similar devices attached to
motor vehicles. "Packaging" means placing in a package.
Division (B)(15) of this section does not apply to persons engaged in
highway transportation for hire.

(16)
Sales of food to persons using supplemental nutrition assistance
program benefits to purchase the food. As used in this division,
"food" has the same meaning as in 7 U.S.C. 2012 and federal
regulations adopted pursuant to the Food and Nutrition Act of 2008.

(17)
Sales to persons engaged in farming, agriculture, horticulture, or
floriculture, of tangible personal property for use or consumption
primarily in the production by farming, agriculture, horticulture, or
floriculture of other tangible personal property for use or
consumption primarily in the production of tangible personal property
for sale by farming, agriculture, horticulture, or floriculture; or
material and parts for incorporation into any such tangible personal
property for use or consumption in production; and of tangible
personal property for such use or consumption in the conditioning or
holding of products produced by and for such use, consumption, or
sale by persons engaged in farming, agriculture, horticulture, or
floriculture, except where such property is incorporated into real
property;

(18)
Sales of drugs for a human being that may be dispensed only pursuant
to a prescription; insulin as recognized in the official United
States pharmacopoeia; urine and blood testing materials when used by
diabetics or persons with hypoglycemia to test for glucose or
acetone; hypodermic syringes and needles when used by diabetics for
insulin injections; epoetin alfa when purchased for use in the
treatment of persons with medical disease; hospital beds when
purchased by hospitals, nursing homes, or other medical facilities;
and medical oxygen and medical oxygen-dispensing equipment when
purchased by hospitals, nursing homes, or other medical facilities;

(19)
Sales of prosthetic devices, durable medical equipment for home use,
or mobility enhancing equipment, when made pursuant to a prescription
and when such devices or equipment are for use by a human being.

(20)
Sales of emergency and fire protection vehicles and equipment to
nonprofit organizations for use solely in providing fire protection
and emergency services, including trauma care and emergency medical
services, for political subdivisions of the state;

(21)
Sales of tangible personal property manufactured in this state, if
sold by the manufacturer in this state to a retailer for use in the
retail business of the retailer outside of this state and if
possession is taken from the manufacturer by the purchaser within
this state for the sole purpose of immediately removing the same from
this state in a vehicle owned by the purchaser;

(22)
Sales of services provided by the state or any of its political
subdivisions, agencies, instrumentalities, institutions, or
authorities, or by governmental entities of the state or any of its
political subdivisions, agencies, instrumentalities, institutions, or
authorities;

(23)
Sales of motor vehicles to nonresidents of this state under the
circumstances described in division (B) of section 5739.029 of the
Revised Code;

(24)
Sales to persons engaged in the preparation of eggs for sale of
tangible personal property used or consumed directly in such
preparation, including such tangible personal property used for
cleaning, sanitizing, preserving, grading, sorting, and classifying
by size; packages, including material and parts for packages, and
machinery, equipment, and material for use in packaging eggs for
sale; and handling and transportation equipment and parts therefor,
except motor vehicles licensed to operate on public highways, used in
intraplant or interplant transfers or shipment of eggs in the process
of preparation for sale, when the plant or plants within or between
which such transfers or shipments occur are operated by the same
person. "Packages" includes containers, cases, baskets,
flats, fillers, filler flats, cartons, closure materials, labels, and
labeling materials, and "packaging" means placing therein.

(25)(a)
Sales of water to a consumer for residential use;

(b)
Sales of water by a nonprofit corporation engaged exclusively in the
treatment, distribution, and sale of water to consumers, if such
water is delivered to consumers through pipes or tubing.

(26)
Fees charged for inspection or reinspection of motor vehicles under
section 3704.14 of the Revised Code;

(27)
Sales to persons licensed to conduct a food service operation
pursuant to section 3717.43 of the Revised Code, of tangible personal
property primarily used directly for the following:

(a)
To prepare food for human consumption for sale;

(b)
To preserve food that has been or will be prepared for human
consumption for sale by the food service operator, not including
tangible personal property used to display food for selection by the
consumer;

(c)
To clean tangible personal property used to prepare or serve food for
human consumption for sale.

(28)
Sales of animals by nonprofit animal adoption services or county
humane societies;

(29)
Sales of services to a corporation described in division (A) of
section 5709.72 of the Revised Code, and sales of tangible personal
property that qualifies for exemption from taxation under section
5709.72 of the Revised Code;

(30)
Sales and installation of agricultural land tile, as defined in
division (B)(5)(a) of section 5739.01 of the Revised Code;

(31)
Sales and erection or installation of portable grain bins, as defined
in division (B)(5)(b) of section 5739.01 of the Revised Code;

(32)
The sale, lease, repair, and maintenance of, parts for, or items
attached to or incorporated in, motor vehicles that are primarily
used for transporting tangible personal property belonging to others
by a person engaged in highway transportation for hire, except for
packages and packaging used for the transportation of tangible
personal property;

(33)
Sales to the state headquarters of any veterans' organization in this
state that is either incorporated and issued a charter by the
congress of the United States or is recognized by the United States
veterans administration, for use by the headquarters;

(34)
Sales to a telecommunications service vendor, mobile
telecommunications service vendor, or satellite broadcasting service
vendor of tangible personal property and services used directly and
primarily in transmitting, receiving, switching, or recording any
interactive, one- or two-way electromagnetic communications,
including voice, image, data, and information, through the use of any
medium, including, but not limited to, poles, wires, cables,
switching equipment, computers, and record storage devices and media,
and component parts for the tangible personal property. The exemption
provided in this division shall be in lieu of all other exemptions
under division (B)(42)(a) or (n) of this section to which the vendor
may otherwise be entitled, based upon the use of the thing purchased
in providing the telecommunications, mobile telecommunications, or
satellite broadcasting service.

(35)(a)
Sales where the purpose of the consumer is to use or consume the
things transferred in making retail sales and consisting of newspaper
inserts, catalogues, coupons, flyers, gift certificates, or other
advertising material that prices and describes tangible personal
property offered for retail sale.

(b)
Sales to direct marketing vendors of preliminary materials such as
photographs, artwork, and typesetting that will be used in printing
advertising material; and of printed matter that offers free
merchandise or chances to win sweepstake prizes and that is mailed to
potential customers with advertising material described in division
(B)(35)(a) of this section;

(c)
Sales of equipment such as telephones, computers, facsimile machines,
and similar tangible personal property primarily used to accept
orders for direct marketing retail sales.

(d)
Sales of automatic food vending machines that preserve food with a
shelf life of forty-five days or less by refrigeration and dispense
it to the consumer.

For
purposes of division (B)(35) of this section, "direct marketing"
means the method of selling where consumers order tangible personal
property by United States mail, delivery service, or
telecommunication and the vendor delivers or ships the tangible
personal property sold to the consumer from a warehouse, catalogue
distribution center, or similar fulfillment facility by means of the
United States mail, delivery service, or common carrier.

(36)
Sales to a person engaged in the business of horticulture or
producing livestock of materials to be incorporated into a
horticulture structure or livestock structure;

(37)
Sales of personal computers, computer monitors, computer keyboards,
modems, and other peripheral computer equipment to an individual who
is licensed or certified to teach in an elementary or a secondary
school in this state for use by that individual in preparation for
teaching elementary or secondary school students;

(38)
Sales of tangible personal property that is not required to be
registered or licensed under the laws of this state to a citizen of a
foreign nation that is not a citizen of the United States, provided
the property is delivered to a person in this state that is not a
related member of the purchaser, is physically present in this state
for the sole purpose of temporary storage and package consolidation,
and is subsequently delivered to the purchaser at a delivery address
in a foreign nation. As used in division (B)(38) of this section,
"related member" has the same meaning as in section
5733.042 of the Revised Code, and "temporary storage" means
the storage of tangible personal property for a period of not more
than sixty days.

(39)
Sales of used manufactured homes and used mobile homes, as defined in
section 5739.0210 of the Revised Code, made on or after January 1,
2000;

(40)
Sales of tangible personal property and services to a provider of
electricity used or consumed directly and primarily in generating,
transmitting, or distributing electricity for use by others,
including property that is or is to be incorporated into and will
become a part of the consumer's production, transmission, or
distribution system and that retains its classification as tangible
personal property after incorporation; fuel or power used in the
production, transmission, or distribution of electricity; energy
conversion equipment as defined in section 5727.01 of the Revised
Code; and tangible personal property and services used in the repair
and maintenance of the production, transmission, or distribution
system, including only those motor vehicles as are specially designed
and equipped for such use. The exemption provided in this division
shall be in lieu of all other exemptions in division (B)(42)(a) or
(n) of this section to which a provider of electricity may otherwise
be entitled based on the use of the tangible personal property or
service purchased in generating, transmitting, or distributing
electricity.

(41)
Sales to a person providing services under division (B)(3)(p) of
section 5739.01 of the Revised Code of tangible personal property and
services used directly and primarily in providing taxable services
under that section.

(42)
Sales where the purpose of the purchaser is to do any of the
following:

(a)
To incorporate the thing transferred as a material or a part into
tangible personal property to be produced for sale by manufacturing,
assembling, processing, or refining; or to use or consume the thing
transferred directly in producing tangible personal property for sale
by mining, including, without limitation, the extraction from the
earth of all substances that are classed geologically as minerals, or
directly in the rendition of a public utility service, except that
the sales tax levied by this section shall be collected upon all
meals, drinks, and food for human consumption sold when transporting
persons. This paragraph does not exempt from "retail sale"
or "sales at retail" the sale of tangible personal property
that is to be incorporated into a structure or improvement to real
property.

(b)
To hold the thing transferred as security for the performance of an
obligation of the vendor;

(c)
To resell, hold, use, or consume the thing transferred as evidence of
a contract of insurance;

(d)
To use or consume the thing directly in commercial fishing;

(e)
To incorporate the thing transferred as a material or a part into, or
to use or consume the thing transferred directly in the production
of, magazines distributed as controlled circulation publications;

(f)
To use or consume the thing transferred in the production and
preparation in suitable condition for market and sale of printed,
imprinted, overprinted, lithographic, multilithic, blueprinted,
photostatic, or other productions or reproductions of written or
graphic matter;

(g)
To use the thing transferred, as described in section 5739.011 of the
Revised Code, primarily in a manufacturing operation to produce
tangible personal property for sale;

(h)
To use the benefit of a warranty, maintenance or service contract, or
similar agreement, as described in division (B)(7) of section 5739.01
of the Revised Code, to repair or maintain tangible personal
property, if all of the property that is the subject of the warranty,
contract, or agreement would not be subject to the tax imposed by
this section;

(i)
To use the thing transferred as qualified research and development
equipment;

(j)
To use or consume the thing transferred primarily in storing,
transporting, mailing, or otherwise handling purchased sales
inventory in a warehouse, distribution center, or similar facility
when the inventory is primarily distributed outside this state to
retail stores of the person who owns or controls the warehouse,
distribution center, or similar facility, to retail stores of an
affiliated group of which that person is a member, or by means of
direct marketing. This division does not apply to motor vehicles
registered for operation on the public highways. As used in this
division, "affiliated group" has the same meaning as in
division (B)(3)(e) of section 5739.01 of the Revised Code and "direct
marketing" has the same meaning as in division (B)(35) of this
section.

(k)
To use or consume the thing transferred to fulfill a contractual
obligation incurred by a warrantor pursuant to a warranty provided as
a part of the price of the tangible personal property sold or by a
vendor of a warranty, maintenance or service contract, or similar
agreement the provision of which is defined as a sale under division
(B)(7) of section 5739.01 of the Revised Code;

(l)
To use or consume the thing transferred in the production of a
newspaper for distribution to the public;

(m)
To use tangible personal property to perform a service listed in
division (B)(3) of section 5739.01 of the Revised Code, if the
property is or is to be permanently transferred to the consumer of
the service as an integral part of the performance of the service;

(n)
To use or consume the thing transferred primarily in producing
tangible personal property for sale by farming, agriculture,
horticulture, or floriculture. Persons engaged in rendering farming,
agriculture, horticulture, or floriculture services for others are
deemed engaged primarily in farming, agriculture, horticulture, or
floriculture. This paragraph does not exempt from "retail sale"
or "sales at retail" the sale of tangible personal property
that is to be incorporated into a structure or improvement to real
property.

(o)
To use or consume the thing transferred in acquiring, formatting,
editing, storing, and disseminating data or information by electronic
publishing;

(p)
To provide the thing transferred to the owner or lessee of a motor
vehicle that is being repaired or serviced, if the thing transferred
is a rented motor vehicle and the purchaser is reimbursed for the
cost of the rented motor vehicle by a manufacturer, warrantor, or
provider of a maintenance, service, or other similar contract or
agreement, with respect to the motor vehicle that is being repaired
or serviced;

(q)
To use or consume the thing transferred directly in production of
crude oil and natural gas for sale. Persons engaged in rendering
production services for others are deemed engaged in production.

As
used in division (B)(42)(q) of this section, "production"
means operations and tangible personal property directly used to
expose and evaluate an underground reservoir that may contain
hydrocarbon resources, prepare the wellbore for production, and lift
and control all substances yielded by the reservoir to the surface of
the earth.

(i)
For the purposes of division (B)(42)(q) of this section, the "thing
transferred" includes, but is not limited to, any of the
following:

(I)
Services provided in the construction of permanent access roads,
services provided in the construction of the well site, and services
provided in the construction of temporary impoundments;

(II)
Equipment and rigging used for the specific purpose of creating with
integrity a wellbore pathway to underground reservoirs;

(III)
Drilling and workover services used to work within a subsurface
wellbore, and tangible personal property directly used in providing
such services;

(IV)
Casing, tubulars, and float and centralizing equipment;

(V)
Trailers to which production equipment is attached;

(VI)
Well completion services, including cementing of casing, and tangible
personal property directly used in providing such services;

(VII)
Wireline evaluation, mud logging, and perforation services, and
tangible personal property directly used in providing such services;

(VIII)
Reservoir stimulation, hydraulic fracturing, and acidizing services,
and tangible personal property directly used in providing such
services, including all material pumped downhole;

(IX)
Pressure pumping equipment;

(X)
Artificial lift systems equipment;

(XI)
Wellhead equipment and well site equipment used to separate,
stabilize, and control hydrocarbon phases and produced water;

(XII)
Tangible personal property directly used to control production
equipment.

(ii)
For the purposes of division (B)(42)(q) of this section, the "thing
transferred" does not include any of the following:

(I)
Tangible personal property used primarily in the exploration and
production of any mineral resource regulated under Chapter 1509. of
the Revised Code other than oil or gas;

(II)
Tangible personal property used primarily in storing, holding, or
delivering solutions or chemicals used in well stimulation as defined
in section 1509.01 of the Revised Code;

(III)
Tangible personal property used primarily in preparing, installing,
or reclaiming foundations for drilling or pumping equipment or well
stimulation material tanks;

(IV)
Tangible personal property used primarily in transporting,
delivering, or removing equipment to or from the well site or storing
such equipment before its use at the well site;

(V)
Tangible personal property used primarily in gathering operations
occurring off the well site, including gathering pipelines
transporting hydrocarbon gas or liquids away from a crude oil or
natural gas production facility;

(VI)
Tangible personal property that is to be incorporated into a
structure or improvement to real property;

(VII)
Well site fencing, lighting, or security systems;

(VIII)
Communication devices or services;

(IX)
Office supplies;

(X)
Trailers used as offices or lodging;

(XI)
Motor vehicles of any kind;

(XII)
Tangible personal property used primarily for the storage of drilling
byproducts and fuel not used for production;

(XIII)
Tangible personal property used primarily as a safety device;

(XIV)
Data collection or monitoring devices;

(XV)
Access ladders, stairs, or platforms attached to storage tanks.

The
enumeration of tangible personal property in division (B)(42)(q)(ii)
of this section is not intended to be exhaustive, and any tangible
personal property not so enumerated shall not necessarily be
construed to be a "thing transferred" for the purposes of
division (B)(42)(q) of this section.

The
commissioner shall adopt and promulgate rules under sections 119.01
to 119.13 of the Revised Code that the commissioner deems necessary
to administer division (B)(42)(q) of this section.

As
used in division (B)(42) of this section, "thing" includes
all transactions included in divisions (B)(3)(a), (b), and (e) of
section 5739.01 of the Revised Code.

(43)
Sales conducted through a coin operated device that activates vacuum
equipment or equipment that dispenses water, whether or not in
combination with soap or other cleaning agents or wax, to the
consumer for the consumer's use on the premises in washing, cleaning,
or waxing a motor vehicle, provided no other personal property or
personal service is provided as part of the transaction.

(44)
Sales of replacement and modification parts for engines, airframes,
instruments, and interiors in, and paint for, aircraft used primarily
in a fractional aircraft ownership program, and sales of services for
the repair, modification, and maintenance of such aircraft, and
machinery, equipment, and supplies primarily used to provide those
services.

(45)
Sales of telecommunications service that is used directly and
primarily to perform the functions of a call center. As used in this
division, "call center" means any physical location where
telephone calls are placed or received in high volume for the purpose
of making sales, marketing, customer service, technical support, or
other specialized business activity, and that employs at least fifty
individuals that engage in call center activities on a full-time
basis, or sufficient individuals to fill fifty full-time equivalent
positions.

(46)
Sales by a telecommunications service vendor of 900 service to a
subscriber. This division does not apply to information services.

(47)
Sales of value-added non-voice data service. This division does not
apply to any similar service that is not otherwise a
telecommunications service.

(48)
Sales of feminine hygiene products.

(49)
Sales of materials, parts, equipment, or engines used in the repair
or maintenance of aircraft or avionics systems of such aircraft, and
sales of repair, remodeling, replacement, or maintenance services in
this state performed on aircraft or on an aircraft's avionics,
engine, or component materials or parts. As used in division (B)(49)
of this section, "aircraft" means aircraft of more than six
thousand pounds maximum certified takeoff weight or used exclusively
in general aviation.

(50)
Sales of full flight simulators that are used for pilot or
flight-crew training, sales of repair or replacement parts or
components, and sales of repair or maintenance services for such full
flight simulators. "Full flight simulator" means a replica
of a specific type, or make, model, and series of aircraft cockpit.
It includes the assemblage of equipment and computer programs
necessary to represent aircraft operations in ground and flight
conditions, a visual system providing an out-of-the-cockpit view, and
a system that provides cues at least equivalent to those of a
three-degree-of-freedom motion system, and has the full range of
capabilities of the systems installed in the device as described in
appendices A and B of part 60 of chapter 1 of title 14 of the Code of
Federal Regulations.

(51)
Any transfer or lease of tangible personal property between the state
and JobsOhio in accordance with section 4313.02 of the Revised Code.

(52)(a)
Sales to a qualifying corporation.

(b)
As used in division (B)(52) of this section:

(i)
"Qualifying corporation" means a nonprofit corporation
organized in this state that leases from an eligible county land,
buildings, structures, fixtures, and improvements to the land that
are part of or used in a public recreational facility used by a major
league professional athletic team or a class A to class AAA minor
league affiliate of a major league professional athletic team for a
significant portion of the team's home schedule, provided the
following apply:

(I)
The facility is leased from the eligible county pursuant to a lease
that requires substantially all of the revenue from the operation of
the business or activity conducted by the nonprofit corporation at
the facility in excess of operating costs, capital expenditures, and
reserves to be paid to the eligible county at least once per calendar
year.

(II)
Upon dissolution and liquidation of the nonprofit corporation, all of
its net assets are distributable to the board of commissioners of the
eligible county from which the corporation leases the facility.

(ii)
"Eligible county" has the same meaning as in section
307.695 of the Revised Code.

(53)
Sales to or by a cable service provider, video service provider, or
radio or television broadcast station regulated by the federal
government of cable service or programming, video service or
programming, audio service or programming, or electronically
transferred digital audiovisual or audio work. As used in division
(B)(53) of this section, "cable service" and "cable
service provider" have the same meanings as in section 1332.01
of the Revised Code, and "video service," "video
service provider," and "video programming" have the
same meanings as in section 1332.21 of the Revised Code.

(54)
Sales of a digital audio work electronically transferred for delivery
through use of a machine, such as a juke box, that does all of the
following:

(a)
Accepts direct payments to operate;

(b)
Automatically plays a selected digital audio work for a single play
upon receipt of a payment described in division (B)(54)(a) of this
section;

(c)
Operates exclusively for the purpose of playing digital audio works
in a commercial establishment.

(55)(a)
Sales of the following occurring on the first Friday of August and
the following Saturday and Sunday of any year, except in 2024 or any
subsequent year in which a sales tax holiday is held pursuant to
section 5739.41 of the Revised Code:

(i)
An item of clothing, the price of which is seventy-five dollars or
less;

(ii)
An item of school supplies, the price of which is twenty dollars or
less;

(iii)
An item of school instructional material, the price of which is
twenty dollars or less.

(b)
As used in division (B)(55) of this section:

(i)
"Clothing" means all human wearing apparel suitable for
general use. "Clothing" includes, but is not limited to,
aprons, household and shop; athletic supporters; baby receiving
blankets; bathing suits and caps; beach capes and coats; belts and
suspenders; boots; coats and jackets; costumes; diapers, children and
adult, including disposable diapers; earmuffs; footlets; formal wear;
garters and garter belts; girdles; gloves and mittens for general
use; hats and caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals; scarves; shoes
and shoe laces; slippers; sneakers; socks and stockings; steel-toed
shoes; underwear; uniforms, athletic and nonathletic; and wedding
apparel. "Clothing" does not include items purchased for
use in a trade or business; clothing accessories or equipment;
protective equipment; sports or recreational equipment; belt buckles
sold separately; costume masks sold separately; patches and emblems
sold separately; sewing equipment and supplies including, but not
limited to, knitting needles, patterns, pins, scissors, sewing
machines, sewing needles, tape measures, and thimbles; and sewing
materials that become part of "clothing" including, but not
limited to, buttons, fabric, lace, thread, yarn, and zippers.

(ii)
"School supplies" means items commonly used by a student in
a course of study. "School supplies" includes only the
following items: binders; book bags; calculators; cellophane tape;
blackboard chalk; compasses; composition books; crayons; erasers;
folders, expandable, pocket, plastic, and manila; glue, paste, and
paste sticks; highlighters; index cards; index card boxes; legal
pads; lunch boxes; markers; notebooks; paper, loose-leaf ruled
notebook paper, copy paper, graph paper, tracing paper, manila paper,
colored paper, poster board, and construction paper; pencil boxes and
other school supply boxes; pencil sharpeners; pencils; pens;
protractors; rulers; scissors; and writing tablets. "School
supplies" does not include any item purchased for use in a trade
or business.

(iii)
"School instructional material" means written material
commonly used by a student in a course of study as a reference and to
learn the subject being taught. "School instructional material"
includes only the following items: reference books, reference maps
and globes, textbooks, and workbooks. "School instructional
material" does not include any material purchased for use in a
trade or business.

(56)(a)
Sales of adult diapers or incontinence underpads sold pursuant to a
prescription, for the benefit of a medicaid recipient with a
diagnosis of incontinence, and by a medicaid provider that maintains
a valid provider agreement under section 5164.30 of the Revised Code
with the department of medicaid, provided that the medicaid program
covers diapers or incontinence underpads as an incontinence garment.

(b)
As used in division (B)(56)(a) of this section, "incontinence
underpad" means an absorbent product, not worn on the body,
designed to protect furniture or other tangible personal property
from soiling or damage due to human incontinence.

(57)
Sales of investment metal bullion and investment coins. "Investment
metal bullion" means any bullion described in section
408(m)(3)(B) of the Internal Revenue Code, regardless of whether that
bullion is in the physical possession of a trustee. "Investment
coin" means any coin composed primarily of gold, silver,
platinum, or palladium.

(58)
Sales of tangible personal property used primarily for any of the
following purposes by a megaproject operator 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 the megaproject operator has
an agreement for such 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:

(a)
To store, transmit, convey, distribute, recycle, circulate, or clean
water, steam, or other gases used in or produced as a result of
manufacturing activity, including items that support or aid in the
operation of such property;

(b)
To clean or prepare inventory, at any stage of storage or production,
or equipment used in a manufacturing activity, including chemicals,
solvents, catalysts, soaps, and other items that support or aid in
the operation of property;

(c)
To regulate, treat, filter, condition, improve, clean, maintain, or
monitor environmental conditions within areas where manufacturing
activities take place;

(d)
To handle, transport, or convey inventory during production or
manufacturing.

(59)
Documentary services charges imposed pursuant to section 4517.261 or
4781.24 of the Revised Code.

(60)
Sales of children's diapers.

(61)
Sales of therapeutic or preventative creams and wipes marketed
primarily for use on the skin of children.

(62)
Sales of a child restraint device or booster seat that meets the
national highway traffic safety administration standard for child
restraint systems under 49 C.F.R. 571.213.

(63)
Sales of cribs intended to provide sleeping accommodations for
children that comply with the United States consumer product safety
commission's safety standard for full-size baby cribs under 16 C.F.R.
1219 or the commission's safety standard for non-full-size baby cribs
under 16 C.F.R. 1220.

(64)
Sales of strollers meant for transporting children from infancy to
about thirty-six months of age that meet the United States consumer
product safety commission safety standard for carriages and strollers
under 16 C.F.R. 1227.2.

(65)
The fee imposed by section 3743.22 of the Revised Code, if it is
separately stated on the invoice, bill of sale, or similar document
given by the vendor to the consumer for a retail sale made in this
state.

(66)
Sales of eligible tangible personal property occurring during the
period of a sales tax holiday held pursuant to section 5739.41 of the
Revised Code.

(67)(a)
Sales of both of the following:

(i)
Electronic instant bingo deals by a distributor with a license under
section 2915.081 of the Revised Code that has an electronic instant
bingo endorsement;

(ii)
Electronic instant bingo tickets by a charitable organization or
instant bingo host as authorized under Chapter 2915. of the Revised
Code.

(b)
As used in division (B)(67) of this section, "charitable
organization," "distributor," "deal,"
"electronic instant bingo," and "instant bingo host"
have the same meanings as in section 2915.01 of the Revised Code.

(68)
Sales of retailer video lottery terminals as defined in section
3770.31 of the Revised Code.

(C)
For the purpose of the proper administration of this chapter, and to
prevent the evasion of the tax, it is presumed that all sales made in
this state are subject to the tax until the contrary is established.

(D)
The tax collected by the vendor from the consumer under this chapter
is not part of the price, but is a tax collection for the benefit of
the state, and of counties levying an additional sales tax pursuant
to section 5739.021 or 5739.026 of the Revised Code and of transit
authorities levying an additional sales tax pursuant to section
5739.023 of the Revised Code. Except for the discount authorized
under section 5739.12 of the Revised Code and the effects of any
rounding pursuant to section 5703.055 of the Revised Code, no person
other than the state or such a county or transit authority shall
derive any benefit from the collection or payment of the tax levied
by this section or section 5739.021, 5739.023, or 5739.026 of the
Revised Code.

Sec.
5747.064.
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)
"Video lottery terminal" has the same meaning as in section
3770.21 of the Revised Code.

(2)
"Lottery sports gaming" has the same meaning as in section
3770.23 of the Revised Code.

(3)
"Retailer video lottery terminal" and "retailer video
lottery terminal operator" have the same meanings as in section
3770.31 of the Revised Code.

(B)
If a person's prize award from a video lottery terminal or

retailer video lottery terminal

from lottery sports gaming offered in a video lottery terminal
facility is 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 lottery sales agent

or retailer video lottery terminal operator

shall deduct and withhold Ohio income tax from the person's prize
award at a rate of four per cent of the amount won. The
lottery
sales
agent

or
operator
shall
issue, to a person from whose prize award an amount has been deducted
or withheld, a receipt for the amount deducted and withheld, and also
shall obtain from the person additional information that will be
necessary for the
lottery
sales
agent

or operator

to prepare the returns required by this section.

(C)
Amounts deducted and withheld by a lottery sales agent
or
retailer video lottery terminal operator
are
held in trust for the benefit of the state.

(1)
On or before the tenth day of each month, the lottery sales agent

or video gaming terminal operator

shall file a return electronically with the tax commissioner
identifying the persons from whose prize awards amounts were deducted
and withheld, the amount of each such deduction and withholding
during the preceding month, the amount of the prize award from which
each such amount was withheld, and any other information required by
the commissioner. With the return, the
lottery
sales
agent

or operator

shall remit electronically to the commissioner all the amounts
deducted and withheld during the preceding month.

(2)
A lottery sales agent
or
video gaming terminal operator
shall
maintain a record of all receipts issued under division (B) of this
section and shall make those records available to the commissioner
upon request. Such records shall be maintained 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 lottery
sales agent

or video gaming terminal operator

shall file an annual return electronically with the tax commissioner
indicating the total amount deducted and withheld during the
preceding calendar year. The
lottery
sales
agent

or
operator
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 lottery sales agent

or video gaming terminal operator

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 of 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 lottery sales agent ceases to operate video lottery terminals,

or if a retailer video lottery terminal operator ceases to operate
retailer video lottery terminals,

the amounts deducted and withheld and any penalties and interest
thereon are immediately due and payable. A successor of the
lottery
sales
agent

or operator

that purchases the video lottery terminals
or
retailer video lottery terminals
from
the agent
or
operator
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 lottery sales agent

or retailer video lottery terminal operator

produces either a receipt from the tax 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.

(D)(1)
Annually, on or before the thirty-first day of January, a lottery
sales agent

or retailer video lottery terminal operator

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 prize award by the
lottery
sales
agent

or operator

during the preceding year.

(2)
Annually, on or before the thirty-first day of January, a lottery
sales agent
or
retailer video lottery terminal operator
shall
provide to the tax commissioner a copy of each information return
issued under division (D)(1) of this section for the preceding
calendar year. The commissioner may require that such copies be
transmitted electronically.

(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.

(F)
The failure of a lottery sales agent

or retailer video lottery terminal operator

to deduct and withhold the required amount from a person's prize
award does not relieve the person from liability for the tax imposed
by section 5747.02 of the Revised Code with respect to that income.
Compliance with this section does not relieve
a
lottery sales
an

agent

or
operator,
or
a person who has a prize award
,

from compliance with relevant provisions of federal tax laws.

(G)
The commissioner shall prescribe the form of the receipt and returns
required by this section and may promulgate any rules necessary to
administer the section.

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 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.

(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 electronic instant bingo distributor 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 is required to pay the tax levied by
section 5753.02 of the Revised Code

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
,
and one calendar month with regard to which an electronic instant
bingo distributor is required to pay the tax levied by section
5753.022 of the Revised Code
.

(L)
"Charitable instant bingo organization," "deal,"
"distributor," "electronic instant bingo,"
"electronic instant bingo system," "fraternal
organization," "ideal gross profit of a deal," and
"veteran's organization" have the same meanings as in
section 2915.01 of the Revised Code.

(M)
"Electronic instant bingo distributor" means a distributor
that provides an electronic instant bingo system to a charitable
instant bingo organization for use under section 2915.093 of the
Revised Code.

(N)
"Ideal gross profit of an electronic instant bingo deal"
means the ideal gross profit of a deal of electronic instant bingo
tickets sold by a charitable instant bingo organization.

Sec.
5753.022.
For
the purposes of supporting arts projects and programs, sports
development, and veterans and defraying the costs of administering
the tax, a tax is levied on the gross profits of electronic instant
bingo conducted by charitable instant bingo organizations at the rate
of thirty-five per cent of the ideal gross profit of an electronic
instant bingo deal sold by a charitable instant bingo organization,
to be remitted by an electronic instant bingo distributor under
division (D)(3)(b) of section 2915.093 of the Revised Code. The tax
does not apply to the gross profits of electronic instant bingo
conducted by a veteran's organization or fraternal organization as
permitted under Chapter 2915. of the Revised Code.

The
tax imposed under this section is in addition to any other taxes or
fees imposed under the Revised Code.

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 electronic instant bingo revenue fund;

(2)
The electronic instant bingo profits fund;

(3)
The electronic instant bingo 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 electronic instant bingo
revenue fund.

(C)(1)
From the electronic instant bingo 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 electronic instant
bingo revenue fund to the electronic instant bingo 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 electronic instant bingo 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
the remaining amount to the electronic instant bingo profits fund on
or before the fifteenth day of the month following the end of each
calendar quarter.

(D)
The money in the electronic instant bingo profits fund shall be used
for the following purposes:

(1)
To support arts projects and programs;

(2)
To support construction and renovation of major sports facilities and
minor league sports facilities throughout the state for the economic
benefit of the state;

(3)
To support veterans.

(E)
All interest generated by the funds created under this section shall
be credited back to them.

Sec.
5753.04.
(A)
(A)(1)

Each taxpayer shall file returns electronically with the tax
commissioner. Casino operators shall file returns daily each day
banks are open for business, not later than noon, and sports gaming
proprietors
and
electronic instant bingo distributors
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

(2)
A
return

filed
under this section
shall
include, but is not limited to, the
following
amounts, as applicable:

(a)
The
amount
of the taxpayer's gross casino revenue
or

and
the amount of the tax due under section 5753.02 of the Revised Code
for the tax period;

(b)
The amount of the taxpayer's
sports
gaming receipts
and
the amount of the tax due under section 5753.021 of the Revised Code

for
the tax period

and the amount of tax due under section 5753.02 or 5753.021 of the
Revised Code for
;

(c)
The ideal gross profit of all electronic instant bingo deals for
which the taxpayer has received payment from charitable instant bingo
organizations under section 2915.093 of the Revised Code during
the
tax period

and the amount of the tax due under section 5753.022 of the Revised
Code for the tax period
.

The

(3)
The
taxpayer
shall remit electronically with the return the tax due.

(B)
If a casino operator

or
,

sports
gaming proprietor
,
or electronic instant bingo distributor

ceases to be a taxpayer at any time, the
operator
or proprietor
person

shall
indicate the last date for which the
operator
or proprietor
person

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 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 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.

(F)
If an electronic instant bingo distributor 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 attorney general may suspend the
distributor's license issued under section 2915.081 of the Revised
Code.

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 tax levied under section 5753.02

or
,

5753.021
,
or 5753.022

of the Revised Code 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 electronic instant bingo 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
payments received under division (D)(3)(a) of section 2915.093 of the
Revised Code,
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
,
or electronic instant bingo distributor

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 a sports gaming facility
without holding a current, valid license issued under Chapter 3775.
of the Revised Code
does
any of the following
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
:

(1)
Operates a casino facility without holding a current, valid license
issued under Chapter 3772. of the Revised Code;

(2)
Operates a sports gaming facility without holding a current, valid
license issued under Chapter 3775. of the Revised Code;

(3)
Conducts electronic instant bingo or acts as a distributor of
electronic instant bingo systems without holding a current, valid
license or endorsement issued under Chapter 2915. of the Revised
Code
.

(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 718.031, 2915.01, 2915.02, 2915.07, 2915.09,
2915.091, 2915.093, 2915.094, 2915.10, 2915.101, 2915.13, 2915.14,
3770.06, 3770.99, 5739.02, 5747.064, 5753.01, 5753.04, 5753.05,
5753.07, 5753.08, and 5753.12 of the Revised Code are hereby
repealed.

Section
3.
The
amendment by this act of section 5739.02 of the Revised Code with
respect to retailer video lottery terminals applies on and after
January 1, 2026.

Section
4.
(A)
As used in this section, "charitable instant bingo
organization," "charitable organization," "electronic
instant bingo," "fraternal organization," and
"veteran's organization" have the same meanings as in
section 2915.01 of the Revised Code, as amended by this act.

(B)
Sections 2915.01, 2915.07, 2915.09, 2915.091, 2915.093, 2915.094,
2915.10, 2915.101, 2915.13, 2915.14, 5739.02, 5753.01, 5753.022,
5753.032, 5753.04, 5753.05, 5753.07, 5753.08, and 5753.12 of the
Revised Code, as amended or enacted by this act, first apply to the
conduct of electronic instant bingo beginning on January 1, 2026.

(C)
No charitable instant bingo organization shall conduct electronic
instant bingo before January 1, 2026.

(D)
Notwithstanding any contrary provision of section 2915.01, 2915.07,
2915.09, 2915.091, 2915.093, 2915.094, 2915.10, 2915.101, 2915.13,
2915.14, 5739.02, 5753.01, 5753.022, 5753.032, 5753.04, 5753.05,
5753.07, 5753.08, or 5753.12 of the Revised Code, as amended or
enacted by this act, a charitable organization that holds a valid
type II or type III license issued under section 2915.08 of the
Revised Code may conduct instant bingo, electronic instant bingo, or
both under that license through December 31, 2025, only in accordance
with the versions of sections 2915.01, 2915.07, 2915.09, 2915.091,
2915.093, 2915.094, 2915.10, 2915.101, 2915.13, 2915.14, 5739.02,
5753.01, 5753.04, 5753.05, 5753.07, 5753.08, and 5753.12 of the
Revised Code that were in effect before the effective date of this
section.