Chapter 3772-74 Fantasy Contests

3772-74-01 Definitions.

(A) The words and terms defined in section 3774.01 of the Revised Code are used in Chapter 3772-74 of the Administrative Code as they are defined in that section.

(B) As used in Chapter 3772-74 of the Administrative Code, the following words have the following meanings, unless the context clearly indicates otherwise:

(1) "Advertisement" means any notice or communication to the public or any information concerning the fantasy contest-related business designed to solicit or entice fantasy contest players to participate in fantasy contests of a fantasy contest operator through broadcasting, publication, or any other means of dissemination and includes promotional giveaways, games, and similar activities.

(2) "Applicant" means any person who applies for a license under fantasy contest law.

(3) "Conduct" means to back, promote, offer, organize, manage, carry on, sponsor, or prepare for the operation of a fantasy contest.

(4) "Fantasy contest operator employee" means any of the following:

(a) A board member or employee of a fantasy contest operator;

(b) A board member or employee of a fantasy contest management company that must apply for licensure under rule 3772-74-08 of the Administrative Code; or

(c) Any contractor of a person described in paragraph (B)(4)(a) or (B)(4)(b) of this rule who has access to material nonpublic information.

(5) "Fantasy contest law" means division (L) of section 3772.03 of the Revised Code, Chapter 3774. of the Revised Code, and Chapter 3772-74 of the Administrative Code.

(6) "Fantasy contest player funds" means cash or cash equivalents of all of the following:

(a) Amounts held by the fantasy contest operator in the fantasy contest player's account. Funds that have been withdrawn by a fantasy contest player from a fantasy contest player's account are not captured in this definition;

(b) Amounts accepted by the fantasy contest operator as entry fees on fantasy contests whose outcome have not yet been determined; and

(c) Amounts owed to fantasy contest players but not yet paid by the fantasy contest operator as prizes, up to the amount of entry fees collected.

(7) "Licensee" means any person who has been granted a license under fantasy contest law.

(8) "Participate in conducting" means:

(a) To have a part in or share of backing, promoting, offering, organizing, managing, carrying on, sponsoring, or preparing the operation of a fantasy contest; or

(b) To manufacture, distribute, sell, lease, or otherwise supply or provide fantasy contest equipment, goods, or services.

(9) "Person" has the same meaning as in section 3772.01 of the Revised Code.

(10) "Prize" means anything of value, including but not limited to, cash or a cash equivalent, contest credits, merchandise, or admission to another fantasy contest in which a prize may be awarded.

(11) "Proposition selection" means fantasy contest players choosing whether an identified instance or statistical achievement will occur, will be achieved, or will be surpassed.

(12) "Roster" means a selected and assembled group of athletes from the underlying actual events and does not include fantasy contests that have the effect of mimicking proposition selection.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3774.01, 3774.03 , 3774.06

3772-74-02 Authority and purpose.

(A) The rules adopted in Chapter 3772-74 of the Administrative Code are done so pursuant to division (L) of section 3772.03 and Chapter 3774. of the Revised Code.

(B) The purpose of Chapter 3772-74 of the Administrative Code is to ensure the integrity of fantasy contests conducted in the state of Ohio.

(C) The commission shall have exclusive jurisdiction over all matters within the scope of its authority under fantasy contest law.

(D) The commission may, under procedures established in Chapter 119. of the Revised Code, adopt, amend, or repeal such rules as it deems necessary and proper for the successful and efficient regulation of fantasy contests under division (L) of section 3772.03 and Chapter 3774. of the Revised Code.

(E) The commission may, in its discretion and where permitted by law, delegate its authority to perform any of its functions related to the regulation of fantasy contests to the executive director or to other employees of the commission. Such delegations shall be governed by rule 3772-2-05 of the Administrative Code.

(F) All notice to, requests of, or correspondence with the commission related to fantasy contest law shall be made to the executive director.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03

3772-74-03 Construction.

(A) The provisions of Chapter 3772-74 of the Administrative Code shall be construed in accordance with generally accepted principles of statutory construction, including those set forth in agency 3772 of the Administrative Code.

(B) In the interpretation of any provisions of Chapter 3772-74 of the Administrative Code, any ambiguity shall be resolved in favor of the interpretation that would provide:

(1) The greater assurance of integrity in either the operation or regulation of fantasy contests; or

(2) Heightened public confidence in the regulation or regulatory processes relating to fantasy contests.

(C) Nothing contained in Chapter 3772-74 of the Administrative Code shall be construed to limit the powers and duties of the commission as provided in division (L) of section 3772.03 or Chapter 3774. of the Revised Code or to conflict with any provision thereof or of any other law.

(D) If any provision of Chapter 3772-74 of the Administrative Code is held invalid, that holding shall not be construed to invalidate any other provision of the rules.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03

3772-74-04 Access to records, examinations under oath, and subpoena power.

Consistent with the authority to do the same with respect to skill-based amusement machine operations and casino gaming and in the discharge of any duties imposed by fantasy contest law, the commission may utilize and enforce its authority to access records and conduct examinations under oath as well as its subpoena power in accordance with section 3772.05 of the Revised Code, division (D) of section 3772.04 of the Revised Code, and rule 3772-2-06 of the Administrative Code.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3772.05, 3774.03 , 3774.04, 3774.05

3772-74-05 Waivers and variances.

(A) The commission may waive or grant a variance from the provisions of Chapter 3772-74 of the Administrative Code, either on its own or upon a written request, if the commission determines that the waiver or variance is in the best interests of the public.

(B) A person required to obtain a license under fantasy contest law shall not seek a waiver from the requirements to apply for, obtain, or maintain a license or to pay a different fee amount than is required by rule 3772-74-08 or 3772-74-09 of the Administrative Code.

(C) A waiver or variance request submitted under this rule shall be submitted in the manner prescribed by the executive director and shall contain all of the following:

(1) The requestor's name, mailing address, telephone number, and electronic mail address;

(2) A contact person and that person's mailing address, telephone number, and electronic mail address;

(3) A detailed description of the specific provisions that the requestor is seeking to have waived or to vary from and the reason or reasons justifying the request;

(4) The requestor's signature or the signature of a duly authorized agent, employee, or representative of the requestor; and

(5) Any other information required by the executive director.

(D) In granting any waiver or variance authorized by this rule, the commission may impose certain conditions and restrictions with which the requestor must comply. Failure to comply with the conditions or restrictions contained in the approved waiver or variance may render the approval void, as determined by the commission at a meeting held under section 3772.02 of the Revised Code.

(E) The commission may consider any waiver or variance request properly submitted under this rule at a meeting held under section 3772.02 of the Revised Code or delegate such responsibility to the executive director. If such a delegation occurs, the executive director shall provide a written response to the requestor indicating whether the waiver or variance has been granted or denied.

(F) The commission, or the executive director if delegated, shall retain sole authority to grant, deny, or modify a waiver or variance request submitted under this rule. The request may be denied or modified for any reason.

(G) Denial or modification of any waiver or variance request submitted under this rule shall not require notice and an opportunity for hearing nor shall it be considered an adjudication or final appealable order for purposes of Chapter 119. or section 2505.03 of the Revised Code. Such denial or modification shall not be considered during any determination of the rights, duties, privileges, or benefits of legal relationships of the requestor.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03

3772-74-06 General fantasy contest licensing requirements.

(A) Applicants for a license under fantasy contest law are seeking a privilege.

(B) An applicant must submit the completed application in the manner prescribed by the executive director.

(C) The executive director may request additional information not prescribed in the application. The applicant shall provide all information, documents, materials, and certifications at the applicant's sole expense and cost.

(D) An incomplete application, or an application containing false, misleading, or omitted information, is cause for administrative action.

(E) A licensing investigation or adjudication may be reopened at any time.

(F) The executive director may recommend to the commission that it deny any application, or limit, condition, restrict, suspend, or revoke any license or impose any fine or other penalty upon any licensee or other person in accordance with fantasy contest law.

(G) No person may re-apply for a license under fantasy contest law for three years from the date the person's application for licensure was denied or license was revoked.

(H) No license issued under this chapter is transferable. A majority change in or transfer of control of a licensee, as determined by the commission, at a meeting held under section 3772.02 of the Revised Code, shall require the filing of a new application and submission of the applicable fees under this chapter before a new license is eligible for consideration or approval. A name change to a licensee, in and of itself, does not constitute a transfer of a license nor require a licensee to seek a new license.

(I) A renewal application must be filed in the manner prescribed by the executive director no less than ninety days before the expiration of the license.

(J) In determining whether a person is eligible to obtain or maintain the privilege of a license under fantasy contest law, the following may be considered:

(1) The reputation, experience, and financial integrity of the applicant or licensee;

(2) Whether the applicant or licensee possesses good character, honesty, and integrity;

(3) If the applicant or licensee has filed, or had filed against it, a proceeding for bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise resolve the payment of any debt;

(4) If the applicant or licensee is or has been a defendant in litigation involving the applicant's or licensee's business practices;

(5) If the applicant or licensee has been indicted, convicted, or pleaded guilty or no contest concerning any criminal offense under the laws of any jurisdiction, excluding minor traffic offenses;

(6) If the applicant or licensee has been served with a complaint or other notice filed with any public body regarding a payment of any tax required under federal, state, or local law that has been delinquent for one or more years;

(7) The extent to which the applicant or licensee has cooperated with the commission;

(8) Whether the applicant or licensee has provided accurate and complete information or has submitted false or misleading information;

(9) The compliance history of the applicant or licensee with fantasy contest-related requirements in this state or any other jurisdiction;

(10) The applicant's or licensee's submission and maintenance of internal procedures required by and compliant with fantasy contest law, if applicable;

(11) If the applicant or licensee has shown a disregard of or otherwise failed to comply with the laws and regulations of this state or any other jurisdiction;

(12) If awarding or maintaining a license would undermine the public's confidence in fantasy contests in this state; and

(13) The suitability of any other material person, as determined by the executive director, including but not limited to, any management company, holding company, or any person designated as a key employee as part of the fantasy contest operator's application.

(K) Nothing in paragraph (J) of this rule shall be considered a limitation on the commission's authority to consider any other information affecting the integrity of fantasy contest law.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.02, 3774.03 , 3774.07

3772-74-07 Fantasy contest operator licensure.

(A) 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:

(1) Thirty thousand dollars for a fantasy contest operator who has at least fifteen thousand 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;

(2) Fifteen-thousand dollars for a fantasy contest operator who has less than fifteen thousand but at least ten thousand 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;

(3) Nine thousand dollars for a fantasy contest operator who has less than ten-thousand but at least five thousand 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; or

(4) Three thousand dollars for a fantasy contest operator who has less than five thousand 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.

(B) All fees in paragraph (A) of this rule may be paid in equal annual installments, if a fantasy contest operator so elects on the application. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code.

(C) If the commission, at a meeting held under section 3772.02 of the Revised Code, determines that a person is suitable and otherwise eligible for licensure, a fantasy contest operator license may be issued for up to three years. Any license issued for less than three years will have the fees listed in paragraph (A) of this rule prorated to reflect the shorter license term.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.02, 3774.03

3772-74-08 Management company licensure.

(A) A management company that manages the day-to-day operations of a fantasy contest operator shall apply to obtain or renew a fantasy contest operator license, comply with all instructions, and pay a non-refundable fee equal to one-half of the fee charged to the fantasy contest operator for which it is a management company.

(B) All fees in paragraph (A) of this rule may be paid in equal annual installments, if a management company so elects on the application. Failure to timely pay any portion of a fee required by this rule constitutes cause for the executive director to issue an emergency order in the manner prescribed by division (G) of section 3772.04 of the Revised Code.

(C) If an applicant for a license as a management company is related through a joint venture or controlled by or under common control with another applicant for a license as a fantasy contest operator for the same fantasy contest platform, with the exception of actual costs of the review and investigation of the additional applicant, only one fee shall be required of the applicant for that fantasy contest platform.

(D) If the commission, at a meeting held under section 3772.02 of the Revised Code, determines that a person is suitable and otherwise eligible for licensure, a management company license may be issued for up to three years. Any license issued for less than three years will have the fees described in paragraph (A) of this rule prorated to reflect the shorter license term.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.03

3772-74-09 Duty to update information.

(A) All applicants and licensees shall update the executive director, in writing, with any information sought in the application that has changed from the submission of the application throughout any period of the license that may be or has been granted, unless otherwise directed by the commission at a meeting held under section 3772.02 of the Revised Code.

(B) All information required to be submitted under this rule must include the name of the applicant or licensee and license number, if applicable, and be submitted in the manner prescribed by the executive director within ten days after the change or occurrence of the event.

(C) This rule does not prohibit the executive director from requiring any further additional information or updates.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.02, 3774.03

3772-74-10 Fantasy contest operator internal procedures.

(A) Fantasy contest operators shall draft written internal procedures, which shall, at a minimum, include procedures for ensuring compliance with all the following:

(1) Complying with all applicable state and federal requirements, as well as industry-standard procedures, to protect the privacy and online security of fantasy contest players and their accounts, including procedures preventing unauthorized withdrawals from fantasy contest player accounts;

(2) Suspending or banning the account of fantasy contest players who violate a fantasy contest operator's internal procedures, the rules or terms of a fantasy contest, or fantasy contest law, applicable to a fantasy contest player;

(3) Providing fantasy contest players with free and immediate access to information on playing responsibly and seeking assistance for compulsive behavior, including at a minimum:

(a) The national council on problem gambling's twenty-four hour confidential helpline, the problem gambling hotline number established under section 3772.062 of the Revised Code, or another helpline approved by the executive director that is free of charge to the fantasy contest player; and

(b) Educational information from a reputable mental health or addiction services organization on identifying, monitoring, and managing compulsive behavior, including information for individuals assisting a person in doing so;

(4) Establishing the maximum number of entries that a fantasy contest player may submit to each fantasy contest and clearly and conspicuously notifying fantasy contest players of what that limit is prior to the player paying any entry fee;

(5) Verifying the identity of fantasy contest players;

(6) Prohibiting the following:

(a) Fantasy contest operator employees, relatives living in the same household as those employees, and athletes, coaches, referees, and other participants in the underlying professional sports competitions from competing in any public fantasy contest offered by a fantasy contest operator; and

(b) Anyone from sharing material nonpublic information gained from a fantasy contest operator with third parties;

(7) Governing fantasy contest operator employees', relatives' living in the same household as those employees, and athletes', coaches', referees', and other participants' competition in private fantasy contests to prohibit the misuse of material nonpublic information gained from a fantasy contest operator in any private fantasy contest entered;

(8) Ensuring that fantasy contest operators prohibit access to all the following:

(a) Individuals under eighteen years of age;

(b) Individuals who, upon request, seek to restrict themselves from entering fantasy contests; and

(c) Fantasy contest players who have been permanently barred or whose accounts have been suspended by the operator for violating a fantasy contest operator's internal procedures, the rules or terms of a fantasy contest, or fantasy contest law, applicable to the fantasy contest player;

(9) Ensuring that fantasy contest operators protect fantasy contest player funds from operational funds in a manner consistent with division (A)(3) of section 3774.03 of the Revised Code and that fantasy contest player funds are shielded from creditors other than the fantasy contest players for whose benefit and protection the segregation or reserve has been established;

(10) Describing how entry fees will be returned to fantasy contest players in the event a fantasy contest is canceled after entry fees have been paid;

(11) Detailing how fantasy contest operators will process unclaimed funds in accordance with Chapter 169. of the Revised Code;

(12) Ensuring that fantasy contest operators complete all the following within five business days:

(a) Deposit cash and cash equivalent prizes won from fantasy contests into a fantasy contest player's account;

(b) Fund withdrawal requests from a fantasy contest player's account, unless the fantasy contest operator believes in good faith that the fantasy contest player engaged in either fraudulent conduct or other conduct that would put the operator in violation of fantasy contest operator's internal procedures, the rules or terms of the fantasy contest, fantasy contest law, or other legal requirements. In which case, the operator may decline to honor the request for withdrawal for a reasonable investigatory period until its investigation is resolved. For purposes of this provision, a request for withdrawal will be considered honored if it is processed by the operator but delayed by a payment processor, credit card issuer, or by the custodian of a financial account; and

(c) Requests to close a fantasy contest player's account;

(13) Detailing how non-cash or non-cash equivalent prizes will be given or otherwise made available to fantasy contest players;

(14) Prescribing requirements related to beginning players and highly experienced players, including, at a minimum:

(a) The definitions of a beginning player and a highly experienced player;

(b) The method by which fantasy contests operators will clearly and conspicuously identify highly experienced players in fantasy contests;

(c) How the fantasy contest operator will offer some fantasy contests open only to beginning players; and

(d) The process by which fantasy contest operators will offer introductory procedures for fantasy contests for beginning players, which shall:

(i) Be clearly and conspicuously offered to a beginning player before that player has paid any entry fee to the fantasy contest operator;

(ii) Explain fantasy contest play, what the definition of a highly experienced player is, and how to identify highly experienced players; and

(iii) Recommend beginning player-only contests as a learning experience;

(15) Operating a voluntary restriction program for those individuals who seek to restrict themselves from entering fantasy contests. This program shall include all the following:

(a) All notifications or restrictions offered to players, which shall include complete exclusion and may include contest entry, entry fee, and deposit limits, among other notifications or restrictions;

(b) How fantasy contest players may request a notification or restriction;

(c) How fantasy contest operators will clearly and conspicuously make the program available to fantasy contest players;

(d) How fantasy contest players may request to have their selected notification or restriction adjusted or removed, including allowing them to have the option to adjust these notifications or restrictions to make them more restrictive as often as they like but not allowing them to have the option to remove or make notifications or restrictions less restrictive within 90 days of setting the notification or restriction at issue;

(e) How the fantasy contest operator will keep the name and other personal information of those participating in the program confidential. Nothing in this provision restricts operators from sharing this information with each other for the sole purpose of operating joint voluntary restriction programs;

(f) The duties of the fantasy contest players enrolled in the voluntary restriction program; and

(g) The duties of the fantasy contest operator with respect to the program, including how the operator will identify and prevent those on the program from participating in fantasy contests in violation of the selected restriction or being targeted by the operator's advertisements;

(16) Identifying authorized scripts that are made readily available to all fantasy contest players and detecting and preventing unauthorized scripts and access;

(17) Creating and following a third-party audit schedule compliant with rule 3772-74-15 of the Administrative Code;

(18) Investigating fantasy contest player complaints that a violation of fantasy contest law has occurred;

(19) Monitoring, identifying, investigating, correcting, and reporting to the executive director any violations in the internal procedures adopted pursuant to this rule; and

(20) Any other internal procedures required by the commission at a meeting held under section 3772.02 of the Revised Code.

(B) Fantasy contest operators shall submit the internal procedures required pursuant to this rule as an appendix to each application submitted by the fantasy contest operator.

(C) Fantasy contest operators who amend these internal procedures prior to the fantasy contest operator's next application must submit the amendments prior to or contemporaneous with when the changes are made, with all changes tracked, in the manner prescribed by the executive director.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.03 , 3774.04, 3774.05, 3774.06

3772-74-10.1 Initial internal procedure submissions.

(A) Applicants for a fantasy contest license who apply within thirty days of the effective date of this rule need not submit the internal procedures with that application, as required by rule 3772-74-10 of the Administrative Code, so long as the internal procedures are provided within ninety days of the effective date of this rule.

(B) No licensing determination shall be made until the applicant submits internal procedures.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03

3772-74-11 Prohibited activities.

(A) No person required to obtain a license under fantasy contest law shall directly or indirectly operate or promote to Ohio consumers any fantasy contest without a valid license granted under fantasy contest law.

(B) Fantasy contest operators shall not offer or allow any of the following:

(1) Auto draft functionality to fantasy contest players, unless otherwise approved by the commission at a meeting held under section 3772.02 of the Revised Code;

(2) Fantasy contest players to choose from pre-selected rosters of athletes;

(3) Any means of athlete selection or assembly that does not involve the input or control of a fantasy contest player; or

(4) Proposition selection or fantasy contests that have the effect of mimicking proposition selection.

(C) No licensee shall operate using a name that has not been provided in the application or a duty to update.

(D) No fantasy contest operator shall extend lines of credit to fantasy contest players.

(E) No person shall fail to timely submit any application, form, report, or information required under fantasy contest law or otherwise requested by the executive director.

(F) No person shall make any false statements or fail to disclose any facts requested in connection with an application or in any communication with the commission.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.03

3772-74-12 Duties of fantasy contest operators.

In addition to all other requirements under fantasy contest law, each fantasy contest operator shall:

(A) Comply with all internal procedures adopted pursuant to rule 3772-74-10 of the Administrative Code.

(B) Publish 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.

(C) Comply with all rules or terms described in paragraph (B) of this rule for each applicable contest.

(D) Provide documentation that fantasy contest player funds are protected as provided for in division (A)(3) of section 3774.03 of the Revised Code once every six months, unless otherwise instructed by the commission, at a meeting held under section 3772.02 of the Revised Code, and in the manner prescribed by the executive director.

(E) Ensure the retention, maintenance, and prompt production of all records required to be kept pursuant to section 3774.04 of the Revised Code.

(F) Ensure responses are promptly issued to all inquiries or requests by the commission.

(G) Notify the executive director of all violations of fantasy contest law of which the fantasy contest operator has knowledge or should have knowledge.

(H) Train fantasy contest operator employees in fantasy contest law and the internal procedures and other requirements thereunder relevant to each employee's individual function, including, if necessary, developing special instructional programs in addition to any on-the-job instruction sufficient to make each employee knowledgeable about the requirements and performance of all duties relating to that employee's functions.

(I) Comply with all notices or directives from the executive director to draft, edit, or implement policies, procedures, or practices.

(J) If a fantasy contest operator intends to cease doing business in Ohio, notify the executive director in the manner prescribed by the executive director at least ninety days, or as soon as practicable, before the proposed closure that the operator intends to cease doing business and providing information regarding the date of the proposed closure, a description of how the operator will be ensuring fantasy contest player funds will be distributed to their rightful owners, and any other information required.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03 , 3774.04

3772-74-13 Duties of key employees.

In addition to all other requirements under fantasy contest law, each key employee shall:

(A) Serve as a representative of the fantasy contest operator.

(B) Ensure all applications, notices, or other filings under fantasy contest law are provided within the timelines required.

(C) Ensure responses are promptly issued to all inquiries or requests by the commission.

(D) Notify the executive director of all violations of fantasy contest law of which the key employee has knowledge or should have knowledge.

(E) Comply with all notices or directives from the executive director to draft, edit, or implement policies, procedures, or practices.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.03

3772-74-14 Duties of management company applicants or licensees.

In addition to all other requirements under fantasy contest law, each management company applicant or licensee shall:

(A) Ensure that the fantasy contest operator for which that person is a management company applicant or licensee is compliant with fantasy contest law.

(B) Notify the executive director of all violations of fantasy contest law of which the management company applicant or licensee has knowledge or should have knowledge.

(C) Retain, maintain, and promptly produce all records described in section 3774.04 of the Revised Code.

(D) Ensure responses are promptly issued to all inquiries or requests by the commission.

(E) Comply with all notices or directives from the executive director to draft, edit, or implement policies, procedures, or practices.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03

3772-74-15 Inspection and audits.

(A) Fantasy contest operators shall contract with a third party to perform an independent audit to ensure compliance with fantasy contest law. The audit shall be performed and a copy of the report provided to the commission at least once every licensure period, unless otherwise instructed by the commission at a meeting held under section 3772.02 of the Revised Code.

(B) Fantasy contest operators shall contract with a third party to perform an independent financial audit. The audit shall be performed and a copy of the report provided to the commission at least once every twelve-month period, unless otherwise instructed by the commission at a meeting held under section 3772.02 of the Revised Code.

(C) Any third party contracted to perform an audit under this rule must be a certified public accountant or, when appropriate, an independent registered certified public accounting firm and shall be approved by the commission, at a meeting held under section 3772.02 of the Revised Code, prior to the audit engagement.

(D) The fantasy contest operator shall ensure the qualifications, good standing, and independence of any third party prior to engagement. The commission, at a meeting held under section 3772.02 of the Revised Code, may deny, restrict, or condition any request for approval of any third party and may require documentation regarding the qualifications, good standing, and independence of the third party, as well as any other documentation needed to process the request for approval, from the fantasy contest operator or the third party.

(E) Any audit conducted under this rule shall be in accordance with fantasy contest law, generally accepted auditing standards, and, when applicable, the standards of the accountancy board.

(F) The third party approved to conduct any audit under this rule shall submit the audit results in the manner prescribed by the executive director no later than such results have been made available to the fantasy contest operator.

(G) Audit requirements under this rule may be waived by the commission pursuant to rule 3772-74-05 of the Administrative Code. These waiver requests should contain documentary support as to why the waiver is justified based upon risk, audits that have been or will be conducted by the commission, or other good cause. Any waiver based upon audits conducted by the commission may result in the cost of the audit being charged to the fantasy contest operator.

(H) The executive director may do the following:

(1) Require the production of and inspect and audit the documents of all persons that conduct or participate in conducting fantasy contests, including those that at one time conducted or participated in the conduct of fantasy contests in this state but have ceased doing so; and

(2) Perform all other things necessary to ensure the integrity of fantasy contests and for the effective licensing, regulating, investigating, and penalizing of all persons conducting or participating in the conduct of fantasy contests authorized by fantasy contest law.

(I) A person shall cooperate at all times with the direction of the commission and shall not interfere or hinder an inspection, audit, or investigation or allow others to interfere or hinder an inspection, audit, or investigation.

(J) All applicants and licensees consent to inspections, searches, and seizures and to the disclosure to the commission of non-privileged confidential records, including tax records, held by any federal, state, or local agency, credit bureau, or financial institution and to provide handwriting exemplars, photographs, fingerprints, and any other information requested.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03 , 3774.04, 3774.05

3772-74-16 Advertising.

(A) Fantasy contest operator advertisements shall:

(1) Accurately depict any representations made concerning the fantasy contest player's chances of winning, the average number or percent of fantasy contest players who win, and the average net winnings of fantasy contest players;

(2) Include information on playing responsibly and seeking assistance for compulsive behavior or shall direct consumers to a reputable source for such information. If an advertisement is not of sufficient size or duration to reasonably permit inclusion of such information, that advertisement shall refer to a website or application that does prominently include such information; and

(3) Clearly and conspicuously state all material or limiting terms or provide a reference where all material or limiting terms may be found. The reference material shall be publicly available and shall, itself, state the terms clearly and conspicuously.

(B) Fantasy contest operator advertisements shall not:

(1) Prominently depict anyone who is under the age of eighteen;

(2) Depict or imply the endorsement of any university, college, high school, or youth sporting league, event, or athlete; or

(3) Depict fantasy contests that are not compliant with fantasy contest law.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.01, 3774.03 , 3774.06

3772-74-17 Hearings.

(A) If the executive director concludes that administrative action should be taken against any applicant, licensee, or any other person subject to fantasy contest law, notice of the proposed action and an opportunity for hearing will be provided in the manner prescribed under Chapter 119. of the Revised Code and Chapter 3772-21 of the Administrative Code.

(B) Except as provided in paragraph (C) of this rule, all hearings and hearing procedures shall be conducted in the manner described in Chapter 3772-21 of the Administrative Code.

(C) The provisions of rule 3772-21-04 of the Administrative Code shall not apply.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03 , 3774.07

3772-74-18 Sanctions.

(A) The commission may, at a meeting held under section 3772.02 of the Revised Code, sanction any licensee, applicant, or other person subject to the requirements of fantasy contest law for any of the following:

(1) Violating or failing to meet any provision or requirement of fantasy contest law;

(2) Engaging in any misrepresentation or material omission;

(3) Engaging in any fraudulent act;

(4) Failing to cooperate with the commission;

(5) Failing to comply with all terms and conditions of a settlement agreement or agreed order with the commission and any subsequent amendments or modifications thereto;

(6) Failing to comply with the terms and conditions of a commission order or resolution and any subsequent amendments or modifications;

(7) Failing to allow the commission access to records, to comply with the terms of a subpoena issued by the commission, or to testify on matters about which the person may be lawfully questioned, pursuant to rule 3772-74-04 of the Administrative Code; or

(8) Engaging in any conduct that undermines the integrity of fantasy contests or the public's confidence in fantasy contests.

(B) The commission may, at a meeting held under section 3772.02 of the Revised Code, impose any sanction set forth in fantasy contest law, including any of the following:

(1) Denial, non-renewal, revocation, suspension, conditioning, or restriction of a license;

(2) Revocation, suspension, or restriction of the conduct or participation in the conduct of fantasy contests in this state;

(3) A monetary fine;

(4) A monetary civil penalty; or

(5) Any other sanction imposed upon or agreed to by a licensee, applicant, or any other person.

(C) If the alleged violation is the result of or results in the unlawful obtainment, maintenance, or retention of any money or property, including funds not properly segregated pursuant to division (A)(3) of section 3774.03 of the Revised Code, the commission may, at a meeting held under section 3772.02 of the Revised Code, in addition to any other penalty or fine levied under fantasy contest law, order the disgorgement of any money or value of the property that was unlawfully obtained, maintained, or retained.

(D) The commission shall not be precluded from finding multiple violations within a day, if each violation is the result of separate and distinct acts.

(E) The commission may hold applicants, licensees, or other persons jointly and severally liable for violations of fantasy contest law.


Effective: 9/3/2019
Five Year Review (FYR) Dates: 09/03/2024
Promulgated Under: 119.03
Statutory Authority: 3772.03, 3774.03
Rule Amplifies: 3772.03, 3774.03 , 3774.07