Ohio Casino Control Commission Seeks Comments On Proprietor Rules

The OCCC is restricted to offering 25 Type-A sports gaming proprietors a license at any one time -- but that comes with a catch.
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The Ohio Casino Control Commission is seeking stakeholder comment on draft applications for Type-A and Type-B sports gaming proprietor licenses.

The commission is also seeking stakeholder comment on draft applications for  mobile management services providers licenses and management services provider licenses.

A Type-A license permits a proprietor to offer sports gaming through one or more online sports gaming sites. The proposed rules state that the commission “shall license not more than 25 Type-A sports gaming proprietors at any one time.” However, the proposed rules also state that additional Type-A sports gaming proprietor licenses could be issued to “eligible applicants who demonstrated to the commission that the sports gaming market [in Ohio]  needs additional Type-A sports gaming proprietors.” The application fee for a Type-A license is $150,000.

A Type-B license permits a proprietor to offer sports gaming at one brick-and-mortar facility at a specified location. The proposed rules state that the commission shall license no more than 40 Type-B sports gaming proprietors at any one time. The application fee for a Type-B license is $20,000.

The commission is accepting comments regarding these draft applications until Friday via email at rulecomments@casinocontrol.ohio.gov.

Locations based on census figures

The proposed rules for Type-B sports gaming proprietor licenses also state that no sports gaming facility shall be located in a county with a population of less than 100,000, as determined by 2010 federal census figures. However, the rules also state that the commission can issue an initial or renewed Type-B sports gaming proprietor license for a sports gaming facility to be located in a county with a population of less than 100,000 should the commission find that the county was visited by at least five million tourists “during the most recent calendar year for which the necessary data are available.”

 

Concerning mobile management services providers, the proposed rules state that a professional sports organization and a mobile management services provider shall not exchange any information that could compromise the integrity of sporting events or sports gaming. It’s also stated that the commission shall adopt a rule establishing a maximum number of management services provider licenses that a person may hold at any one time.

The application fee for a mobile management services provider license is $150,000 and the application fee for a management services provider license is $20,000. The commission is unlikely to accept any license applications until late summer, early fall. Background checks  and eventual decisions on approval  for licenses are expected to take weeks.

Type-C comment deadline comes and goes

The commission previously solicited stakeholder comments for draft applications concerning Type-C sports gaming proprietor licenses. That led to some stakeholders questioning proposed rules that would limit Type-C sports gaming proprietors to just two self-service sports betting terminals.

Stakeholders also expressed concern about the proposed lottery rule that requires gaming hosts to pay out as much as $599 on winning sports bets, which could force bars and restaurants to maintain more cash on hand than had been necessary in the past. Stakeholders had until April 28 to email comments to the commission.

Gov. Mike DeWine signed HB 29 in late December, which legalized sports betting in Ohio. Sports betting platforms aren’t expected to launch in the state until later this year, as the law stipulates that sports betting must be up and running by Jan. 1, 2023.

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