Q: What is House Bill 29?
A: HB 29 legalizes and regulates sports gaming in Ohio. The bill allows sports gaming through licensed operators of online sportsbooks (Type A) and brick-and-mortar establishments (Types B & C). The bill sets a comprehensive licensing and regulatory framework under the jurisdiction and rulemaking authority of the Ohio Casino Control Commission. The bill’s type C language establishes sports gaming regulated by the Ohio Lottery Commission through licensed proprietors’ kiosks at certain lottery sales agent locations who hold certain liquor permits.
For more detailed information about the provisions of HB 29, please visit this link: https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA134-HB-29
Q: What bet types are included in Lottery Sports Gaming?
A: House Bill 29 limits lottery sports gaming to wagers on sporting events approved by the Casino Control Commission in the following manners:
Q: Will sports gaming contribute profits for education?
A: Lottery profits will still be contributed in the same manner. Pursuant to Ohio Revised Code section 3770.06 (B), the Director of Budget and Management certifies the transfers to the Lottery Profits for Education Fund.
Q: What is the process for a Host to change Proprietor partners?
A: Host locations are required to agree to terms directly with a licensed Proprietor partner. In the event a Host changes partners, the legislation and rules require notification be sent to both OCCC and the Lottery. That notification will come directly from the newly selected Proprietor partner and will include the proposed number of terminals being installed.
Q: What are the eligibility requirements for a retailer location?
A: To be eligible for a type C sports gaming host license you must meet the following requirements:
Q: How do I obtain a recommendation from the Lottery?
A: Pre-qualification is the first step in the process for securing a license. If you believe your business meets the above eligibility requirements, visit the Lottery website to complete the interest form at https://www.ohiolottery.com/Sports-Gaming. Once submitted, the Lottery will review your eligibility to verify you qualify for the program. If approved, you will receive a Lottery recommendation via email within 3-5 business days.
Q: Will the host need to pay the $1,000 fee upon application and at subsequent license renewals?
A: The host is responsible for a non-refundable $1,000 fee (plus $3.50 service charge) at application with OCCC. The license is valid for a three-year period. At the time of renewal an additional $1,000 renewal fee will be required.
Q: Is the host required to have a specific square footage or seating available at their establishment?
A: There are no requirements on property size or square footage. The host/proprietor contract agreements will determine what equipment will be offered at each host locations. While the legislation initially calls for no more than two kiosks per location, proprietor’s may formally request additional equipment at a facility subject to approval by the Lottery.
Q: Can a host transfer their type C sports gaming license?
A: Type C host sports gaming licenses will be non-transferable as well. In the event a host plans to sell their business, they must notify the Lottery sixty days (60) prior to the sale and a new license will be required for the location.
Q: What is the process for a host to change proprietor partners?
A: Host locations are required to agree to terms directly with a licensed proprietor partner. In the event a host changes partners, the legislation and rules require notification be sent to both OCCC and the Lottery. That notification will come directly from the newly selected proprietor partner and will include the proposed number of terminals being installed.
Q: Can you discuss type C host compensation?
A: HB 29 creates Ohio Revised Code Section 3775.07 (D) which indicates that the type C sports gaming hosts enter into an agreement with the type C proprietors. One component of that agreement indicates that the proprietor partner will provide a full-service solution to the host including some form of compensation. The compensation will vary based on each proprietor agreement; it may include but is not limited to a percentage of revenues, flat rental payments, or the provision of good and services. This will be paid to hosts by their proprietor partner and will be included as part of the separate contract agreement each host enters into.
Q: Will there be multiple potential type C proprietor options?
A: HB 29 allows the Ohio Casino Control Commission to license up to 20 type C proprietors to offer lottery sports gaming at licensed hosts.
A type C sports gaming proprietor will be required to offer a full-service retail solution including equipment, maintenance, employee training, marketing, prize processing, and customer service plans. Proprietors will be required to comply with the technical components including equipment certification standards; monitoring and integrity standards; and minimum internal control standards. As of July 15th, seven proprietors have completed a formal application to the OCCC.
Q: Does the Lottery have a preferred proprietor vendor for hosts to use?
A: The Lottery is solely the regulator for the type C sports gaming program and is NOT promoting any one vendor solution over another. We encourage hosts reach out to all of the potential proprietor applicants available to see what solution best fits their needs.
Q: How will retailers find a list of available proprietors?
A: The Lottery has posted a list of type C proprietors that have applied for a license with OCCC on the Lottery website (under the Sports Gaming Proprietor tab). The list includes name, website, and basic contact information.
Q: Are all proprietors offering the same solution and contract terms?
A: Each proprietor will offer their own full-service solution to individual host locations. There will be regulations and guidelines all proprietors must follow; however, each proprietor will be able to offer their own unique terminal equipment, prize payment capabilities, and field service support among other things. The host location will contract directly with the proprietor partner that best fits their needs.
Q: What equipment options are available?
A: The equipment will be arranged through the host/proprietor partnerships, and this may vary based on who the proprietor is. The equipment may include both self-service and/or clerk-operated sports gaming terminals. The host and proprietor will make decisions based on their agreements and available equipment offered by the proprietor partner.
Q: Will sports gaming be available on current lottery terminals, or will it be a separate piece of equipment?
A: HB 29 indicates that a type C sports gaming proprietor may adapt a lottery terminal, subject to the rules of the Ohio Casino Control Commission (OCCC) and Ohio Lottery Commission (HB 29 Lines 1927-1932). The Lottery’s existing gaming vendor has applied to use existing MPTW terminals for sports gaming. At this time, the Lottery is in the process of reviewing all proprietor solutions for suitability in advance of formal licenses being issued by the OCCC this Fall.
Q: Will there be a call center for retailers to call for answers and questions?
A: Each proprietor will be responsible for a customer service solution to the host, that includes the process for calling for service, questions on the equipment, training, troubleshooting, etc. The Lottery sports gaming team is also available for questions as needed at 216-774-0690.
Q: Is there a minimum amount of cash a host must keep on hand?
A: No. There is not a minimum amount of money a host needs to keep on hand to pay prizes. Host locations will be able to pay prizes on-site in cash. The prize amounts and frequency of prizes paid in cash will be part of the contract agreement each host makes with their proprietor.
Q: Are hosts required to pay all prizes in cash?
A: No. Hosts are able to pay prizes in cash on-site but are not required to pay all prizes immediately in cash upon validation. Each proprietor will be providing additional options for prize cashing as part of their overall solution to hosts.
Q: What prizes are cashable at the hosts?
A: Lottery retailers are permitted to pay prizes up to the reportable tax threshold. For traditional lottery products, the retailers cash prizes up to $599. However, each proprietor has the ability to set an adjusted prize payment level for cash payouts with each host they partner with.
Q: What cashing options will be available?
A: The Lottery has outlined multiple payment options for winning wagers under the prize payment rule 3770:3-8-02. This includes but is not limited to prizes paid in cash at a host location (the host location of purchase or other authorized locations of the same proprietor if offered); via mail to the proprietor; via the Lottery Central and/or Regional offices; as a credit voucher played back on the terminal; or credited back to a credit card, debit card or electronic player account (if offered by the proprietor).
Lottery Sports Gaming Host (Host) – type C sports gaming hosts (retailers) are the owners of a for profit facility that own a current Ohio Lottery retailer license, hold a D1, D2, or D5 liquor permit issued under Chapter 4303 of the Revised Code, and who is licensed by the Ohio Casino Control Commission to offer sports gaming at their facility through a type C sports gaming proprietor.
Lottery Sports Gaming Proprietor (Proprietor) – type C sports gaming proprietors are sport book vendors licensed by the Ohio Casino Control Commission to offer sports gaming through self-service or clerk-operated sports gaming terminals located at type C sports gaming host facilities.
Gross Sports Gaming Revenue (GGR) – is a financial indicator that shows the amount of money gained by the operator as a result of players’ activity, but before deduction of additional operator expenses. The formula outlined in rule 3770:3-8-01 to calculate GGR is: Sales – prizes paid – approved promotions (if offered) – cancels = GGR
Over/Under Wager – A bet on whether a specific statistic for a game will be higher or lower than a pre-agreed value. This type of bet is also known as a total bet.
Moneyline Wager – A straight up bet, without any point spread, where bettors need to predict the outright winner. Favorites are posted with negative (-185) odds while underdogs are listed with a positive (+165) price. If you bet the favorite, you will receive less money than if you bet the underdog and they win.
Spread Wager – Odds posted on a match that are designed to level the playing field. Favorites are listed with a negative (-6.5) point spread while the underdog is given a ‘head start” with positive (+6.5) odds.
Parlay Wager – A single bet, that consists of two or more sides. Each side must win to produce a winning ticket. The Legislation allows for up to 4 components of the parlay.
Handle (Sales) – The total amount of money in wagers a proprietor/sports book accepts on a single game or event.
Hold – The amount of handle the proprietor/sports book retains after paying out winning wagers (ex. if the hold is 5%, that means that prizes were paid out at 95% of sales).
Exposure – The amount of money a proprietor/sports book is liable for on a game or wagering event.