HomePublicationsCurrent NewsletterVolume 24Issue 38MICHIGAN HOUSE OF REPRESENTATIVES PASSES BILL AMENDING GAMING ACT: BILL ADVANCES TO SENATE FOR CONSIDERATION

The Michigan Legislature continues to move through the final days of the 2018 Session, which currently has sessions scheduled through December 20th.   While leadership in the House and Senate, which are controlled by the Republican party, continue to debate hot pressure issues, include campaign finance enforcement, minimum wage and paid sick leave, the House advanced a bill that would make several modernization changes to the Gaming Control Act. The Gaming Control Act was adopted by voters in 1996 and authorized up to three casino in Detroit and established a regulatory framework for the industry.  It has not been significantly updated to keep up with changes in the industry’s evolution in over 20 years.   The bill now moves to the Senate for review.   Persons interested and reviewing the full bill can obtain a copy at:

https://www.legislature.mi.gov/(S(032bdrbbdhq10abnv3xu32e1))/mileg.aspx?page=getObject&objectName=2018-HB-5881

Below is a summary of certain proposed changes to the Gaming Act:

  1. Increases the disclosure level for applications from 1% owner to greater than 5% owner (pg. 3, Section 2 (e) definition);
  2. Changes the definition of an “occupational license” by adding a requirement that the services must occur “in a casino or a casino enterprise” and must “directly impacts the integrity of gaming”;  (pg. 9, Section 2 (dd))
  3. Deletes “realty, construction, maintenance, junket enterprises, security businesses, manufactures, distributors, persons who service gaming devices or equipment, garbage haulers, maintenance companies, food purveyors and construction companies” from the definition of supplier (pg. 10, Section 2(ff));
  4. Expressly permits the MGCB to enter into agreement with other jurisdictions to offer multijurisdictional games if the games are only in the U.S. (pg. 23, Sec 4a(1)(u));
  5. Modifies the FOIA provisions to: (a) eliminate the waiver of otherwise nonpublic info if presented during a public hearing; (b) permit any information to be designated as confidential by the applicant, licensee or board; (c) exempt any employment or travel schedule, vehicle info or other info that might endanger casino employees or investigators; and (d) exempt business holdings, criminal info, license revocation, bankruptcy, delinquent taxes, public official owners/creditors, and loan information for applicants   (Pgs. 24-25, Section 4(c)(1)(a) and (d) and 4c(2)(c) through (i);
  6. Modifies the criminal history bar to the previous 10 years for felony and 5 years for misdemeanors involving dishonesty for supplier license applicants (pgs. 55-56, Section 6(4)(a) and (b));
  7. Modifies the criminal history bar to the  previous 10 years for felony and 5 years for misdemeanors involving dishonesty for occupational license applicants (pgs. 71-72, Section (8)(3)(c) and (d));
  8. Eliminates the bar to occupational licensing if the applicant owns more than a 10% ownership interest in a casino licensee (pg. 74, Section 8)(6)(i));

Separately, the amendment addresses the following issues:

  1. Permits gaming control board members to receive $1000 per meeting beginning 1/1/23 and the chair $1250 per meeting (pg. 11, Section 4 (4));
  2. Reduces the time period from 3 years to 1 year prior that a board appointee or MGCB employee can’t have worked for a casino (pg. 13, Section 4(10));
  3. Reduces the time period from 4 years to 2 years after that a board appointee or MGCB employee is banned from working for a casino (pg. 14, Section 4(12));
  4. Deletes the explicit authority for the board to discipline a casino license for violation of the Michigan  liquor control act (pg. 23, Section 4a (1)(o)(i));
  5. Allows for people to buy food and drinks for MGCB employees if they submit an annual report if total amounts exceed $500 annually (pg. 35, Section 4d(11) and (12));
  6. Modifies criminal history bar to previous 10 years for felony and 5 years for misdemeanors involving dishonesty for casino license applicants (pgs. 47-48, Section 7a)(4)(a) and (b));
  7. Eliminates the requirement that any horse racetrack shall allow wagering on simulcast horse races “only at the licensees casino” (pg. 83, Section 12(9));

The Michigan Legislature continues to work through other related gaming issues including horse racing, advanced deposit wagering, charitable gaming, internet gaming, sports wagering and fantasy sports.

 

Upcoming Events

Michigan Gaming Control Board Public Meeting 

Tuesday, December 18, 2018 - 9:30AM

Casino Job Board

Official Publications

 

RMC Legal

Visit our other website below: