## Facts

- In November 2013, the Ohio Casino Control Commission (the Commission) issued Vanessa Smith a casino-gaming-employee license.
- Ohio’s casino-licensing statute characterized casino-gaming licenses as revocable privileges and required that licensees be investigated at least every three years to determine continued compliance with licensing requirements.
- The statute required applicants for initial, new, or renewal licenses to submit an application form and fee to the Commission.
- The statute also required “all applicants” to establish suitability for a license by clear and convincing evidence and defined “applicant” as any person who applies to the Commission for a license.
- In July 2016, Smith submitted an application to renew her casino-gaming-employee license.
- After reviewing Smith’s renewal submission and conducting its investigation, the Commission sent Smith a Notice of Opportunity for Hearing stating it intended to deny renewal.
- The notice alleged that Smith had not demonstrated suitability and that her renewal application failed to disclose: a wage garnishment, a bankruptcy, nine instances of criminal conduct, and five civil complaints that resulted in judgments or liens.
- An administrative hearing was held before a hearing officer.
- The hearing officer issued a report and recommendation concluding, among other things, that Smith did not establish her suitability for a renewal license by clear and convincing evidence.
- The Commission adopted the hearing officer’s recommendation and denied Smith’s renewal application.
- Smith appealed to the Franklin County Court of Common Pleas, which reversed and remanded for a new hearing, reasoning that because Smith already held a license and was seeking renewal, she was not an “applicant” and therefore did not bear the clear-and-convincing burden.
- The Commission appealed the common pleas court’s decision to the Tenth District Court of Appeals.

## Issues

1. Whether a current casino-gaming-employee licensee who applies to renew her license is an “applicant” under R.C. 3772.10 and therefore must prove suitability by clear and convincing evidence.
2. Whether the court of common pleas erred as a matter of law by reversing the Commission on the ground that the Commission applied the wrong burden of proof in the renewal proceeding.

## Decision

- The court of appeals held that a licensee seeking renewal is an “applicant” within the meaning of the casino-licensing statute.
- The court of appeals held that the clear-and-convincing-evidence burden applies to renewal applicants, not only first-time applicants.
- The court of appeals reversed the judgment of the court of common pleas.
- The court of appeals reinstated the Commission’s order denying Smith’s renewal application.

## Legal Principles

- Under R.C. 3772.10, “applicant” means any person who applies to the Commission for a license; submitting a renewal application fits within that definition.
- R.C. 3772.10 places the burden on all applicants—including renewal applicants—to establish suitability for licensure by clear and convincing evidence.
- Ohio’s casino-gaming-employee licenses are revocable privileges, and the statutory scheme permits periodic investigation and a fresh suitability determination at renewal; renewal is conditioned on continued compliance.
- In an administrative appeal under R.C. 119.12, the court of common pleas reviews whether the agency order is supported by reliable, probative, and substantial evidence and is in accordance with law; on further appeal, legal questions such as statutory interpretation are reviewed independently.

## Conclusion

The Tenth District Court of Appeals ruled that a casino-gaming-employee licensee who seeks renewal remains an “applicant” under Ohio’s casino-licensing statute and must prove suitability by clear and convincing evidence; because the Commission applied the correct burden, the common pleas court erred in reversing, and the appellate court reinstated the Commission’s denial of renewal.


Smith v. Ohio Casino Control Commission, 149 N.E.3d 981 (2019)