HB 64, passed in 2015 by the Ohio General Assembly, authorizes the Ohio Casino Control Commission to regulate SBAMs.

A SBAM is defined as a device that:

• is controlled solely by a player’s skill
• only awards prizes that are merchandise or merchandise vouchers worth no more than $10 per play
• this includes arcade games where no prize (aside from free play) is possible (for Type-A SBAMs)
• for a list of prohibited prizes, visit the Commission’s website
• includes crane games and claw machines (for Type-B SBAMs)
• includes redemption games that award tickets or vouchers that are redeemable for a merchandise prize (for Type-C SBAMs)

Those participating in SBAM gaming are required to be licensed and in compliance with state law.

SBAM registration/licensing requirements apply to:

• Vendors who distribute Type-B and/or Type-C SBAMs in Ohio
• Operators of Type-B and/or Type-C SBAMs in Ohio
• Locations where Type-C SBAMs are available for play
• Key employees of Ohio vendors, operators, and locations, who are individuals who:
• have executive decision-making authority over the Ohio SBAM operations of any SBAM applicant/licensee, or
• own 25% or more of any SBAM applicant/licensee

Type-A SBAMs require no license.

Applicants who use both Type-B and Type-C SBAMs need only apply for a Type-C license.

Entities that are both operators and vendors can request a waiver of one-half of the application and license fees.

Registration

Operators and vendors must register with the Commission using the State of Ohio eLicense system.

Registration for operators and vendors began on April 23, 2018. The deadline to register continue conducting business while the license application is pending is Sunday, July 22, 2018.

Registration Fees

• Type-B operators – $25 per location
• Type-C operators – $200 per Type-C location; $25 per Type-B location
• Vendors — $200 per vendor
• Registration is not required or available for locations.

Licensing

Operators, vendors, locations, and key employees must also be licensed. The licensure process is also completed using the State of Ohio eLicense system and is nearly identical to the registration process.

All license applications must be submitted by Tuesday, August 21, 2018.

License and application fees:

• Type-B operators – $1,500 application fee, $1,500 license fee, valid for 3 years
• Type-C operators – $3,000 application fee, $3,000 license fee, valid for 3 years
• Type-C locations – $250 application fee, $250 license fee, valid for 5 years
• Vendors – $3,000 application fee, $3,000 license fee, valid for 3 years
• Key employees of operators, locations, or vendors – $250 application fee, $250 license fee, valid for 5 years

Entities that are both operators and vendors can request a waiver of one-half of the application and license fees.

Game Approval

For vendors of SBAM games, game approval:

• Can be submitted to the OCCC for consideration
• Can be submitted to a certified testing lab for consideration

Once a version of a game is approved, any vendor can distribute that version of the game.

No stickers or certificates will be issued for approved games. A list of approved games can be found on the Commission’s website.

Starting 90 days after the Commission issues the vendor/operator/location license to an entity, that entity may offer for sale/operation only SBAMs that have been approved by the Commission.

Applicants, registrants and licensees have an ongoing duty to update the Commission within 30 days of a change or event, including:

• Changes in name, address, or other contact information
• Changes to the state of incorporation or principal place of business
• Changes in criminal, legal, or financial information
• Inquiries, investigations, or regulatory actions by any casino gaming or skill-based amusement machine gaming regulatory agencies in any jurisdiction (except for routine renewals)
• Rejections, denials, revocations, fines, penalties, or settlements associated with gaming-related licensure or equivalent authorization in any jurisdiction; and
• Any information that affects suitability to obtain or maintain a license

Reporting

Annual reports are required of every Type-B and Type-C operator and vendor.

Initial reports are filed upon issuing of the first license, and then due on March 31 of every year after.

These reports cover what types of games are being operated or sold, and the locations of both, and provide financial information.

Type-B and Type-C operators and vendors must notify the Commission of any discontinuance or planned discontinuance of SBAM gaming.
This notice is filed online and must describe the plans for the disposal or sale of the games.

Vendors must retain records of all Types-B and C games sold in Ohio, including the name and address of licensed operator/buyer. Operators must retain records of games and locations, as well as prizes and when they were available. Operators and locations must retain copies of all revenue sharing agreements, accounts of received shared revenue, and list of prizes.

Operators may conduct tournaments by providing the Commission with a 30 day notice. All prizes must be announced at least 48 hours before the tournament begins and cannot be changed after. Prizes may exceed $10 in value, but still must be a merchandise prize.

In regards to prohibited activities, along with vendors, operators and locations only purchasing and selling Types-B and C games to other registered and licensed vendors, operators, and locations in Ohio, no person can:

• Employ an SBAM Key Employee if that person is not licensed by the Commission
• Extend any form of credit to a player to play an SBAM
• Allow deferred payment for the play of an SBAM
• Modify or turn off any feature of an approved SBAM if that would change the function of an SBAM to not comply with technical standards
• Submit a game to more than one certified independent testing laboratory for analysis; or
• Facilitate redeeming or exchanging any merchandise prize previously awarded

Vendors

Vendors and operators of Type-B and Type-C games have other specific, individual duties unique to them. Be sure to visit the Commission’s website for more information on them.