HomePublicationsCurrent NewsletterVolume 27Issue 19MGCB Authorizes New Exemptions for Non-Gaming Businesses and Approves Online Operator Licenses

At its June 8 meeting, the Michigan Gaming Control Board passed Resolution No. 2021-03 to reduce the licensing and reporting requirements for certain small, non-gaming businesses and online gaming vendors. The resulting changes are reflected in an updated interpretation of Rule 432.1322(4) of the Michigan Gaming Control and Revenue Act.

Pursuant to the MGCB’s power to “exempt any person or field of commerce from the supplier-licensing requirements of its administrative rules,” the resolution automatically exempts businesses providing no more than $100,000 worth of nongaming-related goods or services to any casino licensee within a 12-month period. In a press release announcing the resolution, the MGCB noted that this automatic exemption is a $50,000 increase from previous exemption provisions.

The resolution also provides for automatic exemption of any vendor registered under either the Lawful Internet Gaming Act or the Lawful Sports Betting Act on the basis that the licensing of these entities is not considered essential to protect the public interest. Each exemption is contingent upon a vendor providing less than $400,000 of nongaming-related goods and services to any casino licensee.

Additionally, the MGCB extended the term of each exemption from one year to five years. Any current exemption, however, will remain effective until the expiration of its one-year term. If renewed, each exemption will assume a five-year term.

These updates to licensing and reporting requirements, according to MGCB Executive Director Henry Williams, will “allow more small businesses to supply things like food and beverages, snow removal or laundry services to the Detroit casinos without disclosing information to the MGCB.” And the exemptions will improve operating efficiency of online gaming vendors by enabling them to “skip the added paperwork.”

At its meeting, the MGCB also approved the pending online gaming operator license applications of ten operators. In addition to the three Detroit casinos, the licensed operators include seven tribal gaming entities: Bay Mills Gaming Authority, Gun Lake Tribal Gaming Authority, Hannahville Indian Community, Keweenaw Bay Indian Community, Little River Casino Resort Enterprise of Little River Band of Ottawa Indians, Little Traverse Bay Bands of Odawa Indians, and Pokagon Gaming Authority.

 

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