HomePublicationsNewsletter ArchiveNewslettersVolume 21Issue 2Michigan Gaming Control Board Expands Supplier License Exemption Programs

On Tuesday, January 13, 2015, the Michigan Gaming Control Board (“MGCB”) approved a wide range of supplier licensing changes that will provide non-gaming suppliers with more opportunities for exemptions from the state’s supplier licensing process. These changes include increases in the supplier licensing business volume thresholds for various license categories.

Resolution 2015-01(“Resolution”), effective February 1, 2015, rescinds non-gaming supplier licensing requirements that were issued by the MGCB through various resolutions dating back to 1998, the most recent of which occurred in 2012. The Resolution provides guidance for the MGCB’s licensing policy for non-gaming suppliers – vendors that provide goods or services that generally do not affect the gambling activity at the casino, such as advertisers, food providers, outdoor maintenance, and other companies – primarily by increasing the business volume thresholds that trigger licensing requirements. The changes include:

1. Increase in Automatic Exemption Threshold from $15,000/year to $50,000/year: Those suppliers that provide less than $50,000 in any 12-month period are now automatically exempt from the licensing process. There are no reporting or approval requirements for these companies. The MGCB previously allowed for automatic exemptions for those companies providing up to $15,000 worth of goods or services in any 12-month period.

2. Increase in Discretionary Exemption Threshold from $300,000/year to $400,000/year: Suppliers that provide $50,000-$400,000 worth of goods or services in a 12-month period may apply for a license exemption with the MGCB. The exemption application includes a streamlined filing and review process that greatly reduces the filing burdens placed upon suppliers. The MGCB previously allowed for discretionary exemptions for those companies providing $15,000-$300,000 worth of goods or services in any 12-month period.

Under these new requirements, a supplier license will be required for those companies that provide $400,000 or more in goods or services to a casino licensee. According to a press release from the MGCB, the agency expects the new filing requirements to result in an 80% drop in exemption requests and a 54% drop in license requests. As of December 31, 2014, the MGCB reported 1,000 active vendor exemptions and 426 discretionary exemptions are in place.

In a statement released from the MGCB, Executive Director Richard Kalm noted that “[t]he MGCB is making the regulatory process less cumbersome for the Detroit casinos and their non-gaming suppliers, which often are Michigan small businesses. We will continue to maintain the integrity of gaming.” 

In addition to the changes noted above, the Resolution also reestablishes licensing exemptions for certain fields of commerce, such as professional legal services, media outlets, and workplace training providers, which were included with past MGCB resolutions related to non-gaming suppliers.

Click here for the full text of the Resolution.

 

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