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Dowling v. Ohio Casino Control Comm.

Citation: 2022 Ohio 2698Docket: 21AP-646 & 21AP-647

Court: Ohio Court of Appeals; August 4, 2022; Ohio; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves the appeal of Arthur Dowling and NFA Wholesale, LLC, against the Ohio Casino Control Commission's denial of their applications for skill-based gaming licenses. Dowling applied for a key employee license, while NFA sought an operator license. Both applications were denied based on suitability investigations that uncovered issues such as Dowling's failure to disclose involvement in a civil suit related to gaming, past criminal charges, and the seizure of gaming machines. After a hearing, the examiner recommended denial due to Dowling's inability to provide clear and convincing evidence of suitability, which was upheld by the commission. The common pleas court affirmed the commission's decision, emphasizing substantial evidence supporting the denial and compliance with legal standards. The appellate court's review focused on potential abuses of discretion by the lower court, finding no errors. The court highlighted that NFA's denial was also due to Dowling's unsuitability as a key employee. Ultimately, the denials were upheld, citing the appellants' failure to meet the burden of proof and the necessity for accurate information in license applications.

Legal Issues Addressed

Accuracy of Information in License Applications

Application: Dowling's application denial was significantly influenced by his failure to disclose involvement in a civil action related to gaming, which the commission found misleading.

Reasoning: He answered 'NO' to a question regarding his involvement in a civil legal action related to gaming, despite being named as a defendant in 2011.

Burden of Proof in Suitability for Licensure

Application: Dowling and NFA failed to meet the clear and convincing evidence standard required to demonstrate suitability for licensure under the Ohio Administrative Code.

Reasoning: The commission presented evidence of Dowling's involvement in a federal lawsuit alleging deceptive trade practices in 2011, as well as past criminal charges from 2005 related to operating a gambling house.

Impact of Prior Criminal Charges on Licensure

Application: Dowling's previous arrest for operating a gambling house and the 2005 seizure of gaming machines were considered in assessing his suitability.

Reasoning: His prior arrest for operating a gambling house in 2005.

Licensure Denial Based on Suitability Investigations

Application: The Ohio Casino Control Commission denied the licensure applications of Arthur Dowling and NFA Wholesale, LLC, citing issues revealed during suitability investigations including past legal actions and criminal charges.

Reasoning: Both applications were denied based on findings from suitability investigations which revealed significant issues.

Role of Key Employees in Licensing Decisions

Application: NFA's licensure denial was linked to Dowling's unsuitability as the sole key employee, thereby affecting NFA's eligibility for a license.

Reasoning: Dowling was identified as a key employee of NFA, the denial extended to NFA as well.

Standard of Review for Administrative Decisions

Application: The court's review focused on whether the common pleas court abused its discretion, defined as an unreasonable, arbitrary, or unconscionable attitude, while legal questions were reviewed de novo.

Reasoning: An appellate court's review of an administrative decision is limited to determining whether the common pleas court abused its discretion, defined as an unreasonable, arbitrary, or unconscionable attitude.