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This Chapter shall apply to the operation of computerized sweepstake terminals that are lawfully operated pursuant to the Ohio Revised Code and does not legalize or license any operation of a device that is unlawful to operate pursuant to the Ohio Revised Code. This Chapter shall apply immediately to all entertainment device arcades that commence operations after the date of the enactment of this Chapter. All Sweepstake Terminal cafes in operation at the time of enactment of this Chapter shall come into compliance with all Sections of this Chapter no later than thirty (30) days after enactment of this Chapter, unless otherwise stated herein.
(Ord. 272-12. Passed 6-5-12.)
For the purpose of this Chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
(a) "Sweepstake Terminal Cafe" means any business, establishment, room or place where four or more entertainment devices are kept for use by the public or by persons other than the owner of the devices, where persons give anything of value to access the use of the computerized sweepstake terminal or the premises, and the person may be given anything of value by the operator, whether the giving occurs on or off the premise or at the same time or a later time.
(b) "Computerized Sweepstake Terminal" means any mechanical, electronic, video or digital device that is capable of accepting anything of value, directly or indirectly, from or on behalf of a person, for the purpose of playing a game, including sweepstakes games, viewing a video display, hearing an audio transmission or reading entries or outcomes from any other kind of device. "Computerized Sweepstake Terminal" does not include any vending machine, juke box, audio book, video player or any device that gives anything of value where the only value given, directly or indirectly, is a video or audio transmission or the playing of a game. A "Computerized Sweepstakes Terminal" shall include devices for the playing of games with the following characteristics:
A. The ability to play sweepstakes games governed by official rules, which are clearly posted and available to customers.
B. Sweepstakes entries are provided to customers upon purchase of a good or service, for which consideration is paid, and no consideration is paid for the sweepstakes entry itself. Additionally, the sweepstakes game provides for a method of free entry upon request, and the chance of winning the sweepstakes game does not vary between free entries and entries received as a result of purchase.
C. The total number of entries, the number of winning and losing entries and the number and nature of prizes of the sweepstakes game are finite, predetermined and established prior to the start of the sweepstakes. Additionally, all winning and losing entries are predetermined prior to the start of the sweepstakes game and the entries cannot be changed or modified once the sweepstakes game begins.
D. The sweepstakes game contains no element of skill and the customer has no ability to alter or affect the outcome or results of the sweepstakes game.
(c) "Anything of value" means cash, cash equivalents, tangible objects, credits to play, sweepstakes entry points and any other tangibles or intangibles, no matter how slight. Anything of value includes playing a game, viewing a video display, hearing an audio transmission, and reading entries or outcomes from any other kind of device. A person who gives anything of value for a product or service, whether tangible or intangible, in any way, directly or indirectly, in association with being given access to the use of an entertainment device, is deemed to have given value for the access to the computerized sweepstake terminal.
(d) "Operator" means any person or organization that owns, controls, operates, promotes or maintains or knowingly engages in conduct that facilitates the operation of a Sweepstake Terminal Cafe or the computerized sweepstake terminal in an entertainment device arcade.
(e) "Law enforcement agency" means the law enforcement agency responsible for policing the City of Toledo, whether the Toledo police department, or the Lucas County Sheriff's Office or another law enforcement agency contracting with or working in cooperation with the City of Toledo to provide policing serves.
(Ord. 272-12. Passed 6-5-12.)
(a) No person, partnership, corporation, or other entity shall operate or conduct a Sweepstake Terminal Café without first obtaining an annual license to operate therefor from the City of Toledo Department of Finance, Division of Taxation and Treasury. The license to operate shall first be obtained prior to the initial operation of the Sweepstake Terminal Café and annually thereafter, with the subsequent annual application and associated fee due prior to the 1st day of August of each calendar year. For calendar year 2012, all applicants must file by August 1st and all license fees must be paid by September 30th, 2012.
(b) Every person, partnership, corporation, organization or other entity shall make an application in writing to the City of Toledo Department of Finance, Division of Taxation and Treasury. The application shall set forth:
(1) The name and federal tax identification number under which the business is to be conducted;
(2) The location where the business is conducted, with a description of the premises, including a scaled diagram;
(3) The name, address, and government issued photo identification of any manager, supervisor, and all other employees;
(4) The name, address, and government issued photo identification of the owner or owners of the sweepstake terminals; and
(5) The name, address, government issued photo identification and principal occupation of every person with an interest in the business. If the business is conducted by:
A. A sole proprietorship, the name, home address, government issued photo identification and principal occupation of that individual.
B. A firm, Limited Liability Company or partnership, the names, home addresses, government issued photo identification and principal occupations of each member of the firm or partnership.
Corporation, the names, home addresses, government issued photo identifications and principal occupations of all officers and shareholders and the statutory agent;
(6) If a corporation or limited liability company, a certificate of good standing from the Ohio Secretary of State.
(7) The name, description, model number and serial number of each entertainment device on the premises and any other device on the premises that is necessary to the operation of the entertainment device;
(8) A. A list of each separate prize that may be given out and each separate dollar amount that may be given; and
B. The odds of winning any offered prize or dollar amount awarded for the participation in any game, activity, program, scheme or play, use or participation in any way in an entertainment device or participating in any other activity or promotion in the Sweepstake Terminal Café, whether or not the determination of the giving of the thing of value or the delivery of the thing of value occurs totally within the confines of the premises or requires some event, occurrence or happening at another location;
(9) The name and address of any and all persons, businesses or organizations that provide games, computer software, equipment, or services or operate devices linked to the licensee's computerized sweepstake terminal or to devices necessary to operate the computerized sweepstake terminals, whether any such provisions are sold, leased or licensed; and
(c) Duty to keep information current. The person, partnership, corporation, or other entity operating or conducting the business shall have a continuing duty to inform the City of Toledo Department of Finance, Division of Taxation and Treasury to changes in the information required in this section. No person, partnership, corporation, or other entity shall operate or conduct an entertainment device arcade at any time unless the information on file with the City of Toledo Department of Finance, Division of Taxation and Treasury is current and accurately reports the licensing information at the time of operation.
(d) Rejection or approval of application. City of Toledo Department of Finance, Division of Taxation and Treasury shall reject or preliminarily approve an application within twenty-one (21) business days of receipt. If an application is rejected, the City of Toledo Department of Treasury and Taxation shall notify the applicant in writing, with reasons for rejection. If the application is preliminarily approved, the City of Toledo Department of Finance, Division of Taxation and Treasury shall notify the applicant in writing of said preliminary approval. Upon notification of preliminary approval, applicant shall pay to the City of Toledo Department of Finance, Division of Taxation and Treasury the annual license fee due in conjunction with the initial or annual application for each entertainment device that will be located on the premises during the following annual period. Upon receipt of said annual license fee, the City of Toledo Department of Finance, Division of Taxation and Treasury shall grant final approval of the application and shall issue a license to operate. No person shall operate an entertainment device arcade, until such final approval is granted and said license to operate is issued, unless otherwise permitted herein.
(e) Prohibition as a result of conviction; fire inspection. City of Toledo Department of Finance, Division of Taxation and Treasury shall not issue a license to any person, partnership, corporation, or other entity if any of the persons with an interest in the business or if any of the employees of the business have been convicted of a violation of a federal or state statute or of any local ordinance pertaining to gambling or other crime of moral turpitude within five years preceding the application. Also, as a prerequisite to the issuance of such license, an inspection shall be made of the premises by the township's fire department to seek and obtain the approval of said department.
(f) The Director of Inspection, the Commissioner of Building Inspection, or the Certified Building Official, or their designated representative, are authorized to enter a structure or premises at reasonable times to inspect or to perform the duties imposed by this code provided that credentials are presented to the occupant and that entry is required and obtained. Where permission to enter has not been obtained, is denied, or the Department of Inspection has probable cause to believe that there exists in a structure or upon a premises a condition which is a serious hazard, the Division of Building Inspection shall have recourse to the remedies provided by law to secure entry.
(g) Suspension or revocation of license. Failure to register or pay a license fee for a Computerized Sweepstake Terminal shall be grounds for suspension or revocation of the license for the Sweepstake Terminal Café and said device shall, subject to seizure and forfeiture to the City.
(Ord. 272-12. Passed 6-5-12.)
(a) License fees. The non-refundable annual license fee, payable to the City of Toledo Department of Finance, Division of Taxation and Treasury at the time of initial or annual application, shall be $5,000.00 for each entertainment device arcade location for each calendar year or any part thereof. Additionally, an annual non-refundable license fee of $200.00 shall be paid to the City of Toledo Department of Finance, Division of Taxation and Treasury for each computerized sweepstake terminal that will be located on the premises during the following annual period. The annual license fee for each entertainment device shall be paid upon preliminary approval at the time of initial or annual application and no later than July 1st of each calendar year, or, if the computerized sweepstake terminal is brought to the premises following the payment of the annual license fee, prior to such time as the computerized sweepstake terminal is brought to or operating on the premises. For purposes of determining licensing fees, each device that is operable by one or more persons is a separate device.
(b) Non-transferability; display. Licenses issued under this article shall not be transferable to any other person, partnership, corporation, or other entity and the business may be conducted only at the location for which the license is issued. The license must be so placed as to be made conspicuously visible and shall list each computerized sweepstake terminal with serial number.
(c) Disposition of license fees. License fees received by the City of Toledo Department of Finance, Division of Taxation and Treasury shall be deposited to the general fund and subject to appropriation by City Council for purposes consistent with the purposes of this Chapter.
(Ord. 272-12. Passed 6-5-12.)
(a) Creation of Review Board A Sweepstake Terminal Café License Review Board is hereby created to hear complaints concerning Sweepstake terminal café licenses. The Board shall consist of the Director of Law, the Safety Director, the Director of Inspection, the Finance Director, and the Plan Commissioner or their respective designees.
(b) Revocation or suspension of license. A license may be suspended or revoked at any time by the Board on satisfactory proof that violation of the laws of the State of Ohio, the Codified Ordinances of the City of Toledo or this Chapter occurs at a Sweepstake Terminal Cafe. In addition to any license suspension, the Board may assess the licensee a penalty fee of not less than $500.00 or more than $1000.00 for any violation of this Chapter. Each day a continuing violation exists shall constitute a separate violation for purpose of assessing penalty fees. Suspensions, revocations and assessments of penalty fees by the Board is in addition to and separate from any criminal liability and does not preclude criminal prosecution for any violation of this article or other County, State of Ohio or federal laws. Penalty fees shall be disposed of in the same manner as license fees as set forth in Section 736.04(c).
(c) Submission of complaint; regular inspection. Any resident of the City of Toledo may submit a written notice of complaint to the City of Toledo Department of Finance, Division of Taxation and Treasury any Sweepstake Terminal Café located within the city of Toledo. The notice of complaint will include the name, phone number and address of the resident, the address of the location, the OCA device number, if applicable, and the specific reasons why the resident is complaining. The Director of Inspection, the Commissioner of Building Inspection, or the Certified Building Official, or their designated representative, are authorized to enter a structure or premises at reasonable times to inspect or to perform the duties imposed by this code provided that credentials are presented to the occupant and that entry is required and obtained. Where permission to enter has not been obtained, is denied, or the Department of Inspection has probable cause to believe that there exists in a structure or upon a premises a condition which is a serious hazard, the Division of Building Inspection shall have recourse to the remedies provided by law to secure entry.
(d) Interview of complainant. The City of Toledo Department of Finance, Division of Taxation and Treasury may interview the complainant and inquire as to the specific reasons for the complaint. The City of Toledo Department of Finance, Division of Taxation and Treasury may dismiss the complaint if it is determined that:
(1) The specific reasons listed in the complaint are not proper grounds for suspension or revocation of the license; or
(2) There are not substantial credible facts to support the complaint by the township resident.
(e) No appeal from dismissal of complaint. No appeal shall lie from the decision of the City of Toledo Department of Finance, Division of Taxation and Treasury to dismiss a complaint.
(f) Fact-finding conference. If the complaint is not dismissed by the City of Toledo Department of Finance, Division of Taxation and Treasury, the Office will then notify the licensee and the owner of the devices on the premises, as listed on the license application, that a complaint has been filed and will set a date for a fact-finding conference on the matter. Extensions will be granted and necessary investigations will be conducted at the discretion of the City of Toledo Department of Finance, Division of Taxation and Treasury and the Office may request the assistance of the law enforcement agency to assist in the investigation. The City of Toledo Department of Finance, Division of Taxation and Treasury and any assisting law enforcement agency officer shall have access to the Sweepstake Terminal Cafe and the records of the licensee during all times that the computerized sweepstake terminals are available for play.
(g) Resolution of complaint. At the time of the conference, the resident, the licensee, and the owner of the devices will meet and attempt to amicably resolve the situation. If the resident, licensee, and the owner can reach an amicable solution, the City of Toledo Department of Finance, Division of Taxation and Treasury will issue a written notice directing the licensee to comply with the agreed resolution of the complaint.
(h) Referral to the Board. If the parties cannot agree upon an amicable solution to the problem, the City of Toledo Department of Finance, Division of Taxation and Treasury, will transmit the complaint, together with its recommendation thereon, to the Sweepstake Terminal Café Review Board. The Office's recommendation may be for dismissal of the complaint, suspension of the license and assessment of penalty fees, or revocation of the license.
(i) Hearing. The Board may accept, reject, or modify the recommendation of the City of Toledo Department of Finance, Division of Taxation and Treasury. The resident, the licensee and the owner of the devices, as listed on the license application, shall be notified in advance by any method or combination of methods consistent with the Ohio Rules of Civil Procedure regarding service of a complaint. Notice shall include the day, time and location of the hearing to consider the complaint; and shall advise the licensee, if they so choose, be present during consideration of the complaint. The licensee shall be advised of its right to have the right to be represented by counsel, and have the right to examine and cross-examine witnesses and to call witnesses on its behalf. Consideration of the complaint before the Board shall be a public hearing which shall be held within 30 days after said notice is given. The Board shall enter its decision the day of hearing. In the event of a decision and ruling adverse to the licensee, the licensee shall have the right to appeal such decision and ruling to a court of competent jurisdiction under authority of and pursuant to the provisions of Chapter 2506 of the Ohio Revised Code.
(j) Other enforcement actions. The complaint process set forth in this section is separate and distinct from any law enforcement action taken to enforce the laws of the State of Ohio or the Codified Ordinances of the City of Toledo and this Chapter, and is not a condition precedent or otherwise an impediment to enforcement of said laws by criminal prosecution.
(Ord. 272-12. Passed 6-5-12.)
(a) Limitation on location. No license shall be granted to a Sweepstake Terminal Cafe that will conduct its business at a location that is within 500 feet from the boundaries of a parcel of real estate having situated on it a school, public library, public playground.
(b) Exception; change in ownership. This section shall not apply to any Sweepstake Terminal Café locations in existence at the time of the passage of this ordinance, and shall not apply to any duly licensed Sweepstake Terminal Café locations in existence at the time a school, public library, public playground, or any establishment that has been issued a liquor permit by the State of Ohio moves within 500 feet of said entertainment device arcade. However, closing of the business for a time period of one year or greater or change in location will remove said entertainment device arcade from this exception.
(Ord. 272-12. Passed 6-5-12.)
(a) Supervision of computerized sweepstake terminals. Any Sweepstake Terminal Cafe shall have an adult who is 21 years of age or over on the premises and supervising at all times the computerized sweepstake terminals during all hours of operation.
(b) Square-footage. The interior of the Sweepstake terminal cafe shall provide a minimum area of 30 square feet per computerized sweepstake terminal in each room in which computerized computer terminals are located.
(c) Public peace. No operator shall fail to maintain order and quiet on the premises so as not to violate the public peace.
(d) No minors. No persons under the age of eighteen years shall be permitted on the premises of any sweepstake terminal café.
(e) Photo identification. The operator shall require a photo identification of every person to whom anything of value is given in connection with the Sweepstake Terminal Cafe and, if the dollar value of the thing given to a person is $600.00 or more, the operator shall make and maintain a copy of the person's photo identification and shall record the person's name and home address and a description of the thing given, a stated dollar value of the thing given, the date and time of the giving and, if a computerized sweepstake terminal is involved in the circumstances of the giving, the serial number or other identifying description of the device. If the dollar value of the thing given to a person is more than ten dollars, the operator shall include in the record a copy of the person's photo identification. By the second Tuesday of each month the operator shall cause to be delivered to the City of Toledo Department of Finance, Division of Taxation and Treasury a copy of the record of things given to persons together with the above required information given during the preceding month. If the records pertaining to photo identification contain social security numbers or drivers license numbers, the operator and the City of Toledo Department of Finance, Division of Taxation and Treasury shall not disclose those numbers to anyone except as required by the laws of the State of Ohio and the United States government.
(f) Posting. The operator shall post in a conspicuous place on the premises in the room where the Computerized Sweepstake terminals are located in no less than twenty point type:
(1) Each separate prize that may be given and each separate dollar amount that might be given.
(2) The odds as stated in the filing with the City of Toledo Department of Finance, Division of Taxation and Treasury as required in Section 736.03(b)(7).
(3) A complete statement of the rules and conditions pertaining to the giving of any prizes or anything of value to any person, whether or not the determination the giving of the thing of value or the delivery of the thing of value occurs totally within the confines of the premises or requires some event, occurrence or happening at another location.
(g) Records. The operator shall keep a complete set of all records of the operations at the premises at all times, including all federal, state and local tax records, all records of payments and receipts, all records of expenses and revenues of the operation, all banking records, all contracts, leases and agreements affecting the premises, equipment and operation, all personnel records and all other records pertaining to the business, which shall be available for inspection and copying by any entity provided a right of entry under subsection 736.03(f). Records more than 10 years old are exempt from this requirement.
(h) Correct information. No applicant shall make a false or incorrect statement in an application for a Sweepstake Terminal Café license and no operator shall fail to update the information supplied to the City of Toledo Department of Finance, Division of Taxation and Treasury to reflect existing operations as required in Section 736.03(b).
(i) Reporting of Internet Time. Any entertainment device arcade that engages in the sale of internet time or computer usage time in exchange for anything of value shall provide to the City of Toledo Department of Finance, Division of Taxation and Treasury no later than the 2nd Tuesday of each month a report detailing the daily amount of time sold in the preceding calendar month.
(j) Strict liability for violations. It is the intent of this Chapter that operators are strictly liable for any violations of this Chapter.
(Ord. 272-12. Passed 6-5-12.)
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