Contributing Member States: Summer Meeting 2017 Westin Downtown Denver, CO Contributing Member States: Connecticut, Delaware, Florida, Kansas, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania & Texas Save the Date: NCLGS Winter Meeting 2018 January 5-7, Hyatt Regency, Miami, FL

Andromeda Morrison, Director of Skill Games OHIO CASINO CONTROL COMMISSION Andromeda Morrison, Director of Skill Games www.casinocontrol.ohio.gov

Skill Games Oversight In 2015, Ohio Casino Control Commission (“Commission”) was given authority to regulate Skill-based amusement machines (“SBAM”s) in the same manner as it regulates casino gaming. Regulatory oversight developed as a result of illegal gaming proliferating throughout the state. Previous attempts by the Ohio Legislature to regulate the industry resulted in many operators rebranding themselves to avoid oversight. www.casinocontrol.ohio.gov

Skill Games A device that rewards the player only with merchandise prizes or redeemable vouchers for merchandise. The reward or redemption value cannot equate to more than $10 wholesale per play. But, the device will be considered a slot machine if it: Pays out cash; or Reward or success is not based solely on skill. Graphic from The Columbus Dispatch www.casinocontrol.ohio.gov

Skill Games Prohibited Prizes: Cash Gift cards Plays on games of chance State lottery tickets Bingo or instant bingo Firearms Tobacco, or alcoholic beverages; or vouchers redeemable for any prohibited prize www.casinocontrol.ohio.gov

Skill Games? www.casinocontrol.ohio.gov

Illegal Casino Investigations Warrants served on 13 businesses & 6 residences 1,066 illegal slot machines seized/disabled $696,000 in cash seized on site www.casinocontrol.ohio.gov

Illegal Casinos www.casinocontrol.ohio.gov

Skill Games Oversight The Commission has rule-making authority over skill-based games (HB 64; effective Sept. 2015) Skill Games Division has drafted 28 rules related to regulate the industry – includes licensing, compliance and enforcement provisions. Rules are currently working through the CSI/JCARR Process. Goal is to create a system that enables OCCC to effectively identify those operating true skill-based games versus those running illegal slot machines. Anticipate rules taking effect late 2017 www.casinocontrol.ohio.gov

SBAM Categories Type-A: games that do not enable a player to receive a prize as a reward for playing the game, with the exception of free replays (pinball and arcade-style games). Type-B: games where a player uses skill to obtain a prize wholly contained within the machine (crane and claw machines). Type-C: games that do not meet the definition of a type-A or type-B skill-based amusement machine. Most type-C skill-based amusement machines are redemption-style games where a player would redeem tickets, tokens, or vouchers awarded from the machine to obtain a prize (Dave and Busters, Chuck E Cheese). www.casinocontrol.ohio.gov

Skill Games License Categories Type A No License Required Type B Vendors – manufacturers and distributors of type-B games Operators – operate type-B games at any location, but do not operate type-C games Key employees – executive decision-maker of a type-B vendor or operator Type C Vendors – manufacturers and distributors of type-C games Operators – operate type-C games at any location Locations – any place where a type-C game is operated Key employees – executive decision-maker of a type-C vendor, operator, or location Applicants involved with multiple types of games need only apply for a single license (e.g. operator of Type B & C games would apply for a Type C license) www.casinocontrol.ohio.gov

Game Approval Process Games must meet technical standards adopted by the Commission Two paths to approval: Direct submission; or Testing by a certified testing laboratory Commission will publish a public database of all approved games Once approved, a game can be used by any licensed person www.casinocontrol.ohio.gov

Andromeda Morrison, Director of Skill Games OHIO CASINO CONTROL COMMISSION Andromeda Morrison, Director of Skill Games Andromeda.Morrison@casinocontrol.ohio.gov www.casinocontrol.ohio.gov