http://www.reddit.com/r/Bitcoin/comments/244att/bitcoin_banned_for_alcohol_sales_in_state_of_ohio/
The reddit community had some valuable suggestions.
The ODPS has to stand by their statements, as this was made in our major newspaper, The Plain Dealer.
However, this decision was made late Friday and of course no one can be reached on weekends there. I contact the agent in charge Monday, and they are reviewing their position, hopefully in time for our event on Thursday.
Most of these merchants are using BitPay with 100% USD settlement. So, this is no different than accepting a foreign credit card. The transaction is between BitPay and the merchant, not the customer and the merchant, and this transaction is 100% USD. THIS is not what was passed down to the legal team at the state, even though it was thoroughly discussed. What was passed down was only the information about BTC-BTC direct wallet transactions, which only 1 merchant was hoping to do.
The agent gave me the opportunity to submit in my own words what needs to be conveyed, and I did this with support from BitPay, including additional information from BitPay themselves.
What I am hoping for now is a compromise. 1) No for BTC-BTC transactions for alcohol, as this would be barter, and is prohibited by current Ohio liquor law. 2) Yes for BTC-USD using 3rd party payment processor like BitPay, no different than foreign credit card transactions not originating in USD.
This is a work in progress, as to be expected.
This is also required part of the Bitcoin adoption process. It would be incredibly irresponsible not to include the regulators in this conversation, as the merchants' entire livelihood is at stake when it comes to liquor control violations.
As of 4:40pm Wednesday, we are still waiting for an answer as is the Press, which is all over this now. Wired just published an article too: http://www.wired.com/2014/04/bitcoin_beer/
I hope to have good news for everyone, otherwise this will energize a very interesting debate to a long time to come.
I hope you can update with more news as this develops.
Also everyone in Ohio, please contact your state representatives.