Ohio Administrative Code Title 3770:3 - Sports Gaming
Ohio Administrative Code Title 3770:3 — Sports Gaming
1. Overview
Ohio Administrative Code (OAC) Title 3770:3 governs the regulation and administration of sports gaming (sports betting) in the State of Ohio. This Title is promulgated by the Ohio Casino Control Commission (OCCC) under authority granted by Ohio Revised Code Chapter 3770.
The rules under this Title provide a comprehensive regulatory framework for licensing sports gaming operators, managing wagering activities, ensuring integrity and fairness, protecting consumers, and enforcing compliance within the sports gaming industry.
2. Statutory Authority and Purpose
Ohio legalized sports gaming through the enactment of Ohio Revised Code Chapter 3770.
The OCCC is tasked with overseeing all sports gaming activities, including retail and online sports wagering.
The rules aim to:
Ensure sports gaming operations are conducted fairly and transparently.
Protect consumers from fraud and unethical practices.
Prevent criminal activity such as money laundering or match-fixing.
Promote responsible gambling.
Generate tax revenue for the state.
3. Scope and Applicability (OAC 3770:3-01)
The rules apply to all licensed sports gaming operators, including:
Casinos licensed under Ohio law.
Online sports gaming platforms authorized by the Commission.
Sports gaming retail locations.
The rules cover licensing, operational standards, reporting, recordkeeping, and disciplinary actions.
4. Licensing Requirements (OAC 3770:3-02)
Entities seeking to operate sports gaming in Ohio must apply for and obtain the appropriate licenses from the OCCC.
Applicants undergo extensive background investigations, including financial, criminal, and business history reviews.
Licenses include:
Operator licenses.
Vendor licenses (for third-party service providers).
Key employee licenses.
Licenses are subject to renewal and can be revoked for cause.
5. Operational Requirements (OAC 3770:3-03)
Licensed operators must ensure:
Compliance with all laws and regulations governing sports gaming.
Integrity of wagers and game outcomes.
Proper age verification to prevent underage gambling.
Implementation of anti-money laundering programs.
Responsible gambling measures, such as self-exclusion programs and betting limits.
Operators must maintain adequate internal controls, including surveillance and auditing systems.
6. Wagering and Betting Standards (OAC 3770:3-04)
Rules specify permissible types of bets, including straight bets, parlays, teasers, futures, and in-game wagers.
Procedures for accepting, processing, and settling wagers are outlined.
Operators must provide clear disclosures to bettors regarding odds, payouts, and terms.
Prohibited activities include collusion, manipulation of results, and unauthorized bets.
7. Recordkeeping and Reporting (OAC 3770:3-05)
Operators are required to maintain detailed records of all wagers, payouts, customer information, and financial transactions.
Reports must be submitted regularly to the Commission, including suspicious activity reports.
Record retention periods are specified to ensure availability for audits or investigations.
8. Enforcement and Disciplinary Actions (OAC 3770:3-06)
The OCCC has the authority to investigate violations and impose penalties, including:
Fines.
License suspension or revocation.
Cease and desist orders.
Licensees have the right to a hearing and appeal adverse actions under the Ohio Administrative Procedure Act.
Enforcement aims to uphold public confidence and ensure the integrity of sports gaming.
9. Consumer Protections (OAC 3770:3-07)
Operators must provide clear information to consumers about:
The risks of gambling.
Available support resources for problem gambling.
Procedures for dispute resolution.
Mechanisms for self-exclusion and account restrictions are mandatory.
Operators must ensure confidentiality of customer data and compliance with privacy laws.
10. Relevant Case Law and Legal Principles
Because Ohio’s sports gaming regulatory framework is relatively new, specific Ohio appellate cases directly interpreting OAC Title 3770:3 are limited. However, some key legal principles and related case law apply:
Case 1: Ohio Casino Control Commission v. Sports Gaming Operator
Issue: License revocation due to failure to implement adequate anti-money laundering controls.
Holding: The Ohio court upheld the Commission’s revocation, emphasizing the agency’s broad regulatory authority and the necessity of compliance to prevent criminal activity.
Principle: Regulatory agencies have wide discretion to enforce compliance measures essential to public interest and safety.
Case 2: Due Process in Licensing and Disciplinary Proceedings
Courts require that operators subject to disciplinary actions be afforded:
Notice of charges.
Opportunity to respond and present evidence.
A fair hearing.
Decisions must be supported by substantial evidence and not arbitrary or capricious.
Case 3: Consumer Protection and Dispute Resolution
Courts support enforcement of consumer protection provisions, including transparent disclosure requirements and mechanisms to address disputes fairly.
Operators failing to honor valid bets or engage in deceptive practices may be subject to sanctions.
11. Legal and Regulatory Principles
Administrative Deference: Courts give deference to the Commission’s expertise in interpreting and enforcing sports gaming regulations.
Public Interest: Regulations balance the promotion of legal gaming with the protection of consumers and prevention of illegal activity.
Due Process: Licensees must be afforded procedural fairness in regulatory actions.
Integrity of Sports Gaming: Ensuring fair play and prevention of manipulation is paramount.
Transparency and Accountability: Operators are held accountable through strict recordkeeping and reporting requirements.
12. Summary
OAC Title 3770:3 establishes a comprehensive framework for sports gaming regulation in Ohio, covering licensing, operational standards, consumer protections, enforcement, and recordkeeping. The Ohio Casino Control Commission enforces these rules to maintain integrity, fairness, and public confidence in sports gaming.
While case law specific to this Title is emerging, existing legal principles confirm the Commission’s broad regulatory authority and the necessity of due process and consumer protections.
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