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Can I offer contests that involve entry fees in Ohio? What are the requirements?

Yes, you can offer contests that involve entry fees in Ohio, but you must comply with the state’s regulations. The Ohio Casino Control Commission regulates player-against-player contests, while the Ohio Athletic Commission regulates fees for boxing, mixed martial arts, kickboxing, and wrestling. Fantasy contests are regulated by the Ohio Attorney General’s Office.

To offer player-against-player contests, you must follow the rules outlined in OHAC Rule 3772-14-01 and OHAC Rule 3772-14-02. These rules include conducting contests using only commission-approved electronic gaming equipment, table games, and table game equipment, conducting contests in a separate room or area segregated within the gaming floor, providing written rules that contain specific information such as the date(s) of the contest, required entry fee, formula to calculate the rake, participant eligibility requirements, and prize structure, and having written procedures for collecting a rake, including entry fees or other consideration, during the conduct of player against player contests. The rake shall accumulate to gross casino gaming revenue. Winnings paid in a tournament shall be deductible from gross casino gaming revenue, but any such deduction shall not exceed the total rake, including entry fees or other consideration, received for the tournament and non-cash winnings shall be deductible only to the dollar value of the amount invoiced to and paid by the casino operator. You must also keep a complete record of the names of all entrants, all prizes awarded, and prize winners for each contest. Player against player contest banks shall be kept at an imprest amount and any variances between the actual amount of chips and cash and the set imprest amount shall be documented and investigated. Casino operators shall have procedures for conducting transfers between imprest player against player contest banks and casino cages or other imprest player against player contest banks. Chips or cash shall be transported between imprest contest banks and casino cages or other imprest contest banks in a manner which allows for the chips or cash to be continuously observed by surveillance [1.1][1.2].

To offer boxing, mixed martial arts, kickboxing, or wrestling contests, you must pay the fees outlined in OHRC Section 3773.43. These fees include $100 for an application for or renewal of a promoter’s license for a public or private competition that involves boxing, mixed martial arts, kickboxing, tough man contests, tough guy contests, or any other form of boxing or martial arts, and $200 for an application for or renewal of a promoter’s license for a public or private competition that involves wrestling. You must pay these fees to the treasurer of state, who will deposit them in the occupational licensing and regulatory fund [3.1].

To offer fantasy contests, you must follow the rules outlined in OHAC Rule 3772-74-06, OHAC Rule 3772-74-07, OHAC Rule 3772-74-11, and OHRC Section 3774.09. These rules include obtaining a valid license granted under fantasy contest law, publishing all rules or terms of each fantasy contest in a manner that enables a fantasy contest player to read the rules and terms before paying an entry fee to that contest, and ensuring that fantasy contest player funds are protected as provided for in division (A)(3) of section 3774.03 of the Revised Code. You must also draft written internal procedures that include procedures for complying with all applicable state and federal requirements, verifying the identity of fantasy contest players, and establishing the maximum number of entries that a fantasy contest player may submit to each fantasy contest. Additionally, you must operate a voluntary restriction program for those individuals who seek to restrict themselves from entering fantasy contests. A person seeking to obtain or renew a fantasy contest operator license shall apply for licensure, designate at least one key employee, comply with all instructions, and pay a non-refundable fee in the applicable amount. The fees range from $3,000 to $30,000 depending on the number of fantasy contest players in the state of Ohio who paid at least one entry fee in the twelve months prior to the current application for licensure. All fees may be paid in equal annual installments. Fantasy contests offered in accordance with this chapter and the rules adopted by the commission under this chapter or division (L) of section 3772.03 of the Revised Code are exempt from Chapter 2915. of the Revised Code [2.2][2.3][4.1].

In summary, to offer contests that involve entry fees in Ohio, you must comply with the regulations set forth by the Ohio Casino Control Commission, the Ohio Athletic Commission, and the Ohio Attorney General’s Office.

Source(s):
Jurisdiction

Ohio