3770-2-02 Grounds for refusal of a license.

(A) In addition to the mandatory grounds for refusal to grant an applicant's request for a license described in divisions (C)(1) to (C)(5), (D)(1) to (D)(4) and (E)(1) to (E)(2) of section 3770.05 of the Revised Code, the director shall refuse to grant a license to an applicant:

(1) If any principal to be affiliated with the applicant is found to have committed any of the acts specified in division (C)(1) to (C)(5), (D)(1) to (D)(4) or (E)(1) to (E)(2) of section 3770.05 of the Revised Code;

(2) When it appears to the director that, due to the experience, character or general fitness of any principal to be affiliated with the applicant, the granting of a license would be inconsistent with the public interest, convenience or trust.

(3) The applicant has made a fraudulent misrepresentation in connection with the application for a license.

(B) When an applicant, or in the event the applicant is a corporation, any of the corporation's directors, officers, or controlling shareholders, as well as any principal to be affiliated with the applicant, has been convicted of any of the acts specified in division (C)(1) to (C)(3) or (C)(5), or (E)(1) to (E)(2) of section 3770.05 of the Revised Code, the director may require the applicant to obtain an order from a court of competent jurisdiction to have the record of such offense sealed, if they are eligible to do so. If such an order is not obtained during the time specified by the director, the director may refuse the application. The foregoing not withstanding, if the record of an applicant contains a conviction for any offense which is at least ten years old, the director may disregard the offense.

(C) Discretionary consideration which may be grounds for refusal. Before issuing any license, the director may consider the factors set out below. In considering these factors, the director may determine which applicants will best serve the economical and efficient operation of a statewide lottery through their game sales. If the facts with respect to a particular applicant which are relevant to any of these factors lead the director to determine that issuing a license of any classification to the applicant would not so promote the economical and efficient operation of a statewide lottery consonant with the public interest, or would not serve the public interest, convenience or trust, the director may refuse to issue a license to that applicant.

(1) The director may consider the financial responsibility and security of the applicant and the business or activity; the applicant's credit-worthiness and integrity in past financial transactions; and the physical security of the applicant's place of business to determine that any games which are consigned to the applicant, and the proceeds from game sales will be kept safe.

(2) The director may consider the accessibility of an applicant's place of business or activity to the public, including compliance with the requirements of The Americans with Disabilities Act of 1990 (ADA), Section 12101-12213 of 42 U.S.C. (as amended in 2008).

(3) The director may consider the sufficiency of existing agents to serve the public interest. An effort shall be made to maximize total game sales by recruiting and licensing sales agents under various classifications of license as determined by the director with the highest potential volume.

(4) The director may consider the volume of expected sales by the applicant so that licensing of the sales agent will be economically feasible.

Effective: 2/19/2015
Five Year Review (FYR) Dates: 11/17/2014 and 06/20/2018
Promulgated Under: 119.03
Statutory Authority: 3770.03
Rule Amplifies: 3770.01 , 3770.02 , 3770.03 , 3770.04 , 3770.05 , 3770.06 , 3770.07 , 3770.08
Prior Effective Dates: 7/15/74, 5/27/93, 8/22/93, 12/27/96, 1/31/98, 2/13/2004, 6/20/09