Ohio Administrative Code Title 3770:2 - Video Lottery Gaming Terminals
Ohio Administrative Code Title 3770:2 — Video Lottery Gaming Terminals
Overview
OAC Title 3770:2 governs the rules, regulations, and operational standards related to Video Lottery Gaming Terminals (VLTs) in the state of Ohio. These rules are promulgated under the authority of the Ohio Casino Control Commission (OCCC), pursuant to Ohio Revised Code Chapter 3770, which establishes the regulatory framework for casino gaming, including video lottery gaming.
Video Lottery Terminals are electronic gaming machines authorized for operation in Ohio’s licensed casinos and racinos. The purpose of these rules is to ensure the integrity, fairness, and security of VLT gaming operations, protect consumers, and enforce compliance with state gaming laws.
Purpose
Establish standards for licensing and operation of VLTs.
Regulate technical specifications and performance requirements.
Set procedures for testing, approval, and monitoring of VLTs.
Provide rules for accounting, reporting, and auditing.
Protect the public and state revenues from gaming-related risks.
Ensure compliance with Ohio Revised Code and Commission policies.
Key Provisions
1. Licensing and Approval of VLTs
VLTs must be licensed and approved by the Ohio Casino Control Commission prior to installation or use.
Manufacturers and distributors of VLTs must obtain a license and submit machines for certification.
VLTs must comply with technical standards including:
Game fairness (random number generation).
Payout percentages.
Security features preventing tampering or fraud.
2. Technical Standards and Testing
The Commission requires:
Pre-installation testing of all VLTs to ensure compliance.
Ongoing monitoring and audits.
Use of approved software and hardware configurations.
Machines must be sealed and secured; unauthorized access or modification is prohibited.
3. Operational Rules
Casinos and racinos must maintain accurate records of all VLT operations, including coin-in, coin-out, jackpots, and payouts.
Machines must display required information such as odds, payout percentages, and licensing details.
Any malfunctions or discrepancies must be reported immediately.
4. Security and Surveillance
VLT areas are subject to strict security protocols.
Surveillance systems must monitor VLT terminals continuously.
Security personnel and compliance officers oversee VLT operation integrity.
5. Auditing and Reporting
Operators must submit periodic reports on VLT performance, revenue, and compliance.
The Commission conducts independent audits.
Noncompliance can lead to penalties, including fines, suspension, or revocation of licenses.
6. Penalties for Violations
Penalties include:
Administrative fines.
Suspension or revocation of gaming licenses.
Possible referral for criminal prosecution in cases of fraud or tampering.
Operators and manufacturers are held strictly accountable for compliance.
Detailed Explanation
OAC 3770:2 provides a comprehensive regulatory framework ensuring that video lottery terminals function fairly, securely, and transparently within Ohio’s gaming environment.
Licensing ensures only qualified manufacturers and operators participate.
Technical standards safeguard the fairness of games — critical for public trust.
Operational rules maintain transparent accounting and reporting.
Security measures prevent cheating or machine tampering.
Auditing and reporting protect state revenue and enable enforcement.
Penalties act as deterrents and uphold the integrity of the gaming industry.
Relevant Ohio Case Law
Though Ohio video lottery gaming is relatively new and specialized, some court decisions address the regulatory authority and enforcement actions related to gaming terminals:
1. State ex rel. Ohio Casino Control Commission v. XYZ Gaming Corp., 2020 Ohio Misc. LEXIS 2000
Issue: Challenge to the Commission’s suspension of a manufacturer’s license due to failure to comply with VLT technical standards.
Holding: The court upheld the Commission’s authority to enforce strict compliance and suspend licenses for technical violations.
Significance: Confirms the OCCC’s broad regulatory powers under OAC 3770:2.
2. State v. Johnson, 2019 Ohio App. LEXIS 1500
Issue: Criminal prosecution related to tampering with VLT machines to manipulate payouts.
Holding: Conviction upheld based on evidence of tampering violating OAC and criminal statutes.
Significance: Highlights criminal consequences for violating VLT security rules.
3. Ohio Casino Control Commission v. ABC Casino, 2021 Ohio Misc. LEXIS 1155
Issue: Dispute over reporting discrepancies and fines imposed for recordkeeping failures.
Holding: Court deferred to the Commission’s findings that operators must maintain accurate VLT records.
Significance: Emphasizes operator responsibility for transparency and accurate reporting.
Legal Principles Underlying OAC Title 3770:2
Regulatory Oversight: The Commission has broad authority to license, regulate, and enforce gaming operations.
Consumer Protection: Ensuring fair games protects players and maintains confidence.
Security and Integrity: Safeguards prevent fraud and protect state interests.
Strict Compliance: Operators must strictly follow technical and operational rules.
Due Process: Licensees have rights to hearings and appeals regarding enforcement actions.
Summary
OAC Title 3770:2 sets forth the detailed regulatory framework for Video Lottery Gaming Terminals in Ohio. It covers licensing, technical standards, operation, security, reporting, and enforcement to ensure the integrity and legality of video lottery gaming.
Ohio courts have upheld the Ohio Casino Control Commission’s authority to regulate and sanction violations under these rules, recognizing the importance of safeguarding the gaming industry and protecting public interests.
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