Consideration of Sports Gaming Rules for Initial Approval.pdf

SUMMARY OF PROPOSED RULES FOR FILING The rules presented here are being reviewed pursuant to the state’s rule-review requirement in R.C. 106.03 and are the rules contained in Ohio Adm.Code Chapters 3772-1, 3772-4, 3772-7, 3772-9, 3772-21, 3772-22, and 3772-23. Amendments are being proposed to these rules as follows. • 3772-1-01 Definitions (amend). This rule defines terms used in Ohio Adm.Code Agency 3772. The rule is being amended to remove “internal control system” as a defined term since it is not used in the rule. • 3772-4-05 Affirmative license standards (amend). This rule states the affirmative standards that a casino operator, management company, or holding company must meet before the Commission can grant the entity a license, including establishing the suitability of certain entities and persons by clear and convincing evidence. The rule is being amended to remove redundant language. • 3772-9-05 Transportation of electronic gaming machines to and from a casino facility (amend). This rule requires casino operators to notify the Executive Director five days prior to transporting electronic gaming equipment to or from a casino and comply with any conditions the Executive Director imposes on the transportation. Paragraph (B) is being amended to require a casino operator to maintain documentation for the transportation of electronic gaming machines rather than affirmatively notify the Executive Director. Because the information is available upon request, there is no need to notify the Executive Director. Paragraph (B)(1) is being amended for clarity. Paragraph (B)(4) is being amended so that the documentation must include the date the machines left the location of origin rather than the expected date they will be transported. Paragraph (B)(5) is being added to require inclusion of the date of delivery of the machines. • 3772-9-06 Possession and storage of electronic gaming equipment (amend). This rule requires a casino operator to provide the Commission with a list of all electronic gaming equipment, including whether the equipment is stored on the casino floor, off the floor SUMMARY OF PROPOSED RULES FOR FILING but on the casino premises, or in this state but off the casino premises. It also provides how the equipment must be secured. The rule is being amended as follows: Instances of “casino floor” are being replaced with the clearer term “designated gaming area.” Paragraph (A)(3) is being stricken because no casino operators use offsite storage and because other procedures exist for preventing unapproved games from being put into operation. Paragraph (C)(3) is being amended to streamline the requirement so that the only locks that may be used are those that cannot be removed without the corresponding key. Paragraph (D) is being stricken as unnecessary since all software is verified and authenticated prior to use. • 3772-9-09 Installation or removal of electronic gaming equipment (amend). This rule mandates that casino operators follow certain requirements when installing or removing electronic gaming equipment from the casino gaming floor. These requirements include Executive Director approval and the logging of any access to the secure area within the machine. Additionally, the rule requires that before any game is installed, it’s critical storage program media must be verified and sealed by a Commission employee. At a general level, this rule is being amended to pull in the maintenance requirements of Rule 3772-9-10, which is being rescinded, and its title is being amended to include maintenance. Changes are being made as follows: The current rule requires a casino operator to obtain approval from the Executive Director before installing or removing electronic gaming equipment from the gaming floor. Because operators no longer rely on the presence of Commission staff, paragraph (A) is being amended to instead require any installation or maintenance to be performed by or in the presence of licensed key or casino gaming employees. The current rule requires a casino operator to maintain a log of specified information that documents access within the secure area of electronic gaming equipment for installation or removal. Paragraph (B) is being stricken to remove this requirement because modern surveillance technology has rendered it obsolete. New paragraph (B) is being added to require electronic gaming equipment to be suitable for operation and verified as approved, and to require the method of verification to be approved by the Executive Director. This requirement already existed in a slightly different form in Rule 3772-09-10. Paragraph (C) is being stricken as the Commission is no longer involved in the verification process. 2 SUMMARY OF PROPOSED RULES FOR FILING New paragraphs (C) and (D) are being added to deem equipment unsuitable for operation if the equipment appears compromised and to prohibit such equipment from being returned to service until the problem is remedied and a report is provided to the Commission. This requirement already existed in a slightly different form in Rule 3772- 09-10. In old paragraph (D), now (E), “gaming floor” is being replaced with the clearer term “designated gaming area.” Paragraph (D)(1) is being stricken as seals are no longer used. • 3772-10-02 Internal controls (amend). This rule requires casino operators to submit internal controls for Commission approval prior to operating. The amendment does the following: Clarifies that the submission must be made prior to initial operation; o Gives the Executive Director, rather than the Commission, the power to approve o amendments to a casino operator’s internal controls; and Allows the Executive Director, at any time, to require specific internal controls or o a change to the internal controls to ensure compliance with the casino laws. • 3772-12-01 Definitions, purpose, and scope of the Ohio voluntary exclusion program (amend). This rule establishes the framework for Ohio’s statewide Voluntary Exclusion Program for individuals who wish to exclude themselves from Ohio casinos and sportsbooks. It requires that participants agree to self‑exclude from all casinos, video lottery terminal facilities, and sports gaming operations unless entering for approved employment purposes. It also allows the Casino Control Commission and State Lottery Commission to disclose anonymized information to research entities selected by the Casino Control Commission for the purpose of evaluating the program’s effectiveness and ensuring its proper administration. The rule is being amended as follows: The current definition of “excluded entity” includes casino facilities and video lottery terminal facilities. The amendment replaces “facilities” with “operators.” The current definition of “excluded facilities” includes casino facilities and video lottery terminal facilities. The amendment limits the definition to the designated gaming areas at such facilities. The current rule requires participants in the Voluntary Exclusion Program to exclude themselves from excluded facilities and excluded entities. The amendment retains exclusion from excluded facilities but limits the exclusion from excluded entities to any gambling offered by such entities. 3