3770:2-3-01 Video lottery licenses; application.

 

 

 

3770:2-3-01                 Video lottery licenses; application.

 

 

 

(A)Application for a video lottery license shall be submitted in accordance with procedures, processes, requirements and/or conditions which may include but may not be limited to bidding procedures set by the director and shall be made on a form approved by the director. At a minimum, and without limitation, an application for a video lottery license shall require compliance with licensing requirements for a lottery sales agent under section 3770.05 of the Revised Code and Chapter 3770-2 of the Administrative Code, and shall include the following requirements which a video lottery applicant must provide at the time of submission of the application or agree to comply with should a video lottery license be issued.

 

(1)A video lottery applicant must submit the video lottery applicant's legal name, form of entity, the names, addresses, employer identification numbers or social security numbers (if applicable) and dates of birth (as applicable) of its video lottery principals. Disclosure of any criminal charges or convictions of all individuals or entities whose names must be provided must also be included in the application;

 

(2)A video lottery applicant must submit to the commission an application fee in the amount set forth in rules promulgated by the commission under division 3770:2 of the Administrative Code;

 

(3)A video lottery applicant must submit proof, in a form required by the director, that the video lottery applicant is a permit holder. If more than one permit holder conducted horseracing meetings at a track during the previous year, the permit holders shall designate, by a written agreement, to be submitted prior to issuance of a video lottery license, one permit holder to be the actual video lottery sales agent in the event a video lottery license is issued;

 

(4)A video lottery applicant must submit, in a form acceptable to the director, its proposed business plan for video lottery at its facility, which may require the inclusion of documents relating to an applicant's borrowing or financing of video lottery operations including but not limited to the payment of licensing fees. A business plan may be deemed a trade secret under 1333.61(D) of the Revised Code and therefore may not be subject to disclosure under section 149.43 of the Revised Code;

 

(5)A video lottery applicant must agree to provide, in a form and by a date acceptable to the director, its proposed security and surveillance plan for approval by the director or director's designee. A security and surveillance plan may be deemed an infrastructure record and/or security record as set forth in section 149.433 of the Revised Code and therefore may not subject to disclosure under section 149.43 of the Revised Code;

 

(6)For the period of time established or required by the director, a video lottery applicant must provide a listing of any and all gaming licenses, registrations

 

 

 

or certifications obtained by the video lottery applicant, including the type of license, registration, or certification, date of issuance, date of suspension, termination, expiration or cancellation, if suspended, terminated, expired or cancelled, and the reason for suspension, termination, expiration or cancellation, and the date of assessment, imposition or payment of any penalties or fines;

(7) If and as required by the director, a video lottery applicant must agree to submit to criminal and financial background checks and reviews of the video lottery applicant or its video lottery principals, or any other persons affiliated with the video lottery applicant or video lottery sales agent who the director determines should be required to submit to a criminal or financial background check. Background and financial checks and reviews for institutional investors who are video lottery principals may be required as deemed necessary by the director;

(8) Within the time specified by the director, a video lottery applicant must, in a form acceptable to the director, obtain a dedicated non-revocable letter of credit, a surety bond, financial guarantee or other alternative form of credit approved by the director in an amount determined by the director, but in a minimum amount of two million dollars to ensure payment of funds due the commission. In addition, the director may require a video lottery applicant to submit evidence of the ability to obtain general liability insurance, workers compensation coverage, property insurance in amounts required by the director, and any other insurance or bonds deemed necessary by the director;

(9) If required by the director, a video lottery applicant must submit a signed indemnification agreement in a form approved by the director;

(10) An applicant must agree to provide, at times requested by the lottery, a written schedule that lists the installed cost of all fixtures and equipment supplied or to be supplied in connection with video lottery conducted at the video lottery sales agent's facility approved for video lottery sales;

(11) Unless the director determines, based on documentation provided by a video lottery sales agent, that the within stated goals cannot be met, an applicant must agree to set a goal to award not less than fifty percent of the contracts associated with the necessary capital improvements and goods and services related to ongoing operations for the facilities at which video lottery terminals are located to Ohio-based businesses, and set a goal to see that not less than fifty percent of the subcontracts of those contracts are awarded to Ohio-based businesses;

(12) Unless the director determines, based on documentation provided by a video lottery sales agent, that the within stated goals cannot be met, an applicant must agree to set a goal to see that not less than five percent of subcontracts

described in division (B)(11) of this section are awarded to Ohio-based businesses that are EDGE enterprises in accordance with executive order 2008-13S;

(13) Unless the director determines, based on documentation provided by a video lottery sales agent, that the within stated goals cannot be met, an applicant must agree to set a goal to see that not less than ten percent of subcontracts described in division (B)(11) of this section are awarded to Ohio-based businesses that are MBE enterprises in accordance with executive order 2008-13S;

(14) An applicant must agree to set a goal that not less than fifty percent of the personnel employed by the applicant to perform duties related to video lottery gaming will be residents of the county where the facility at which video lottery terminals is located or of an Ohio county adjacent to that county;

(15) An applicant must agree to provide the lottery with an annual report relative to the goals set forth in divisions (B)(11) to (B)(14) of this section

(16) A video lottery applicant must agree that video lottery terminals shall be located at the premises of the permit holder licensed by the racing commission to conduct live horse racing for profit at a racing meeting, which includes premises contiguous or adjacent to those premises, except that, in the event that the Ohio racing commission, pursuant to its statutory authority, grants a permit holder, who is located on property owned by a political subdivision, a permit to conduct live horse racing for profit at a racing meeting at a location at which horse-racing meetings have not previously been conducted, if approved by the director, a video lottery sales agent may locate video lottery terminals, sell video lottery and engage in any other authorized video lottery activity at a facility located on the premises where live horse racing for profit at a racing meeting will be conducted, including premises contiguous or adjacent to those facilities, while the new horse track is being constructed or otherwise prepared even if live horse racing for profit at a racing meeting has not yet started at the new horse track;

(17) A video lottery applicant must agree to purchase or lease, maintain and timely repair video lottery terminals, and a video lottery applicant must agree that video lottery terminals will only be purchased or leased from the director's list of approved technology providers;

(18) A video lottery applicant must agree to provide for a clearly identifiable separation between the video lottery area and the racing wagering area. Unless otherwise approved by the director, no individual under twenty-one years of age shall be in the video lottery area, except for employees or agents of the video lottery sales agent or the lottery who are in the video lottery area for an authorized business purpose;

(19) An applicant must agree to make, maintain and repair necessary capital improvements for facilities at which video lottery terminals are located in accordance with standards and timetables set forth in rules promulgated by the commission under division 3770:2 of the Administrative Code, and agrees to make and adhere to minimum levels of investments and improvements into the video lottery facility in amounts set forth in rules promulgated by the commission under division 3770:2 of the Administrative Code;

(20) A video lottery applicant must agree that any hardware or software installed to facilitate redemption of credit vouchers shall be the video lottery sales agent's responsibility;

(21) A video lottery applicant must agree to be responsible for the costs associated with providing technology providers and other personnel designated by the director, sufficient space, as determined by the director, at the facility, where video lottery terminals are located, to allow technology providers and other personnel designated by the director to store equipment and conduct service, repairs and maintenance of video lottery terminals, video lottery central monitoring system and peripherals associated therewith necessary to ensure continued operation of the video lottery central monitoring system and video lottery terminals;

(22) A video lottery applicant must agree to timely report to the director, or the director's designee, any malfunction of the video lottery terminals or associated equipment, or failures of the technology providers to promptly service, repair or deliver video lottery terminals when such malfunctions or failures are reported to, made known to or observed by a video lottery sales agent;

(23) A video lottery applicant must agree to allow the lottery and its designated agents access to the video lottery facility and records for audits authorized under section 3770.06 of the Revised Code and for any other purposes deemed necessary by the director;

(24) A video lottery applicant must agree that all funds due to the lottery shall be transferred to the lottery by electronic fund transfer, or other method as approved by the director on the days and times set forth in the schedule or schedules issued by the director; and

(25) A video lottery applicant must agree that payments of video lottery winnings to video lottery participants, and required withholdings, if applicable, will be handled in accordance with procedures as approved by the director.

(B) As deemed necessary by the director, the director may amend the application and require video lottery applicants and/or video lottery sales agents to supplement or complete an amended application. Further, all information required to be submitted

as part of an application for a video lottery license pursuant to division 3770:2 of the Administrative Code must be updated or supplemented if updates or changes occur following the submission of an application. In the event that updated or supplemental information is required by or received by the lottery, the director maintains discretion to suspend, revoke or reconsider an application or otherwise modify the conditions of the issuance of a license. In the event that the director takes action in connection with any updated or supplemental information received by the lottery, the director will adhere to required notices and procedures regarding any suspensions, revocation, reconsideration or modification of an application or the issuance of a license.

Effective:	10/28/2010
R.C. 119.032 review dates:	10/28/2015
CERTIFIED ELECTRONICALLY
Certification
10/18/2010
Date
Promulgated Under:	119.03
Statutory Authority:	3770.03
Rule Amplifies:	3770.01, 3770.02, 3770.03, 3770.06, 3770.21