Online Gambling License in Ohio

The Ohio Casino Control Commission regulates all forms of legal gambling in Ohio. It is a bipartisan regulatory body made up of seven Commissioners who are chosen by the Governor. In addition to the members, there is an executive director and supporting staff that oversee Ohio’s gaming industry.

The Director of Operations and Problem Gambling Services, the Director of Skill Games, the Director of Communications, the Director of Regulatory Compliance, the Director of Enforcement, and the Chief Technology Gaming Officer also support its work.

All appointed members of the Commission must have the proper educational and professional background and must serve the position with dignity and respect, aimed at protecting the customers and ensuring the highest levels of security. 

The OCCC ensures that all legal forms of gambling are fair, transparent, and legal. They are in charge of licensing, regulating, investigating all gambling operations, and ensuring that all state laws are properly enforced.

Types of Gambling Regulated by the OCCC

The OCC regulates several types of gambling in the state. Let’s take a closer look at them.

Land-Based Casinos

Considering commercial casinos have been legal since 2009, residents in Ohio can visit any of the four land-based casinos and play all types of casino games – slots, blackjack, roulette, poker, and more. The Commission regulates all aspects of these casinos and ensures that they maintain high levels of integrity. According to the current legal framework, the OCCC can issue several types of gambling licenses for traditional casinos:

• Casino Operator License – Issued to companies that wish to offer gambling services of all kinds. It allows them to have and offer slot games, table games, etc. To obtain this license, the applicant must pay the corresponding fee, pass a background check, and provide technical and financial plans.
• Management Company License – Issued to companies that operate and manage casinos on behalf of a Casino Operator Licensee.
• Gaming-Related Vendor License – Issued to companies that provide products and services to Casino Operator Licensees. Examples of these products are slot machines, tables for card games, software for casino management, software for security, etc.
• Key-Employee License – Issued to individuals who have decision-making power in the operation. Examples of this would be managers, directors, etc. To obtain a license as a key employee, an individual must pass a background check, have educational and professional qualifications, and have clean criminal records.
• Casino Gaming Employee License – Issued to operational employees in the gambling facility. These are usually dealers, floor managers, security employees, etc. To obtain a casino gaming employee license, an individual must pass a background check, have qualifications, a clean criminal record, and maintain the Commission’s fairness standards.
• Gaming-Related Test Lab License – Issued to companies and testing laboratories that ensure fairness of the games and can certify the equipment.

Sports Betting

The State of Ohio legalized sports betting on January 1, 2023, and appointed the OCCC as the regulatory body to oversee the integrity of all sports betting operations. The Ohio Casino Control Commission monitors all operations and oversees financial reports, auditing, and more. It also collaborates with the different sports leagues to prevent tampering and corruption. The Commission issues several types of licenses for legal sports betting in Ohio:

Type A License

The Type A License is for mobile management service providers that want to offer mobile betting. This includes sports teams, casinos, and racinos. They can partner with up to two online sportsbooks to run their mobile betting platforms. The application fee is $3 million for a five-year license with one sportsbook and $10 million for a license with two sportsbooks.

Type B License

The Type B License is for retail sportsbook operators, such as casinos, racinos, and sports venues. This license allows them to open and run a physical sportsbook for in-person betting. The fee varies by county population: $150,000 for counties with fewer than 400,000 people, $500,000 for counties with up to 800,000, and $1 million for counties with over 800,000. All licenses are valid for five years and must be renewed afterward.

Type C License

The Type C License is for businesses like bars and restaurants that want to host sports betting kiosks. The application fee is $1,000 for a three-year license. This license allows businesses to offer betting services on point spreads, parlays, and money lines, with a limit of $700 in bets per person each week.

In addition to these main licenses, there are supporting licenses such as the Management Service Provider License, Supplier License, and Employee License – all similar to the land-based casino licenses.

The legal framework predicts a 10% tax on net revenue from sports betting operations. The revenue goes to the Sports Gaming Revenue Fund, which supports educational activities and responsible gambling resources.

Fantasy Sports Contests

DFS has been legal since House Bill 132 of 2018 was passed. With it, the OCCC gained the responsibility to monitor all fantasy sports betting and ensure legal compliance. According to the current legislature, there are two types of licenses issued for DFS operators:

• Full Fantasy Contest Operator License – Issued to operators who offer large-scale fantasy sports. The license fee is $30,000 for a 3-year license.
• Small Operator License – Issued to operators who have less than $100,000 in gross revenue from DFS contests. The license fee is $1,000 for a 3-year license.

VLTs

Video Lottery Terminals are allowed in seven licensed racinos in Ohio. The racinos pay 33.5% of the revenue in taxes. The revenue generated from VLTs is allocated to the Lottery’s Education Fund. For VLTs to be legally compliant, they must have an RTP of at least 85%.

Regulatory Framework of the OCCC

The main law that regulates the authority and responsibility of the Commission is the Ohio Revised Code (ORC). Specifically, Chapter 3772 outlines the duties and regulates how the Ohio Casino Control Commission has the power to license and revoke licenses. In 3772.99, the State outlines the penalties and provides the mechanisms that the Commission can use in response to violations and corruption.

Another relevant act that outlines how the OCCC fulfills its duties is the Ohio Administrative Code. It details the licensing requirements, the standards for technical integrity, the guidelines for operators and security, and the requirements to ensure responsible gambling.

FAQs about The Ohio Casino Control Commission