Michigan Gaming Control Board. What Detroit Casino Vendors Must Know

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1 Michigan Gaming Control Board What Detroit Casino Vendors Must Know 1

2 Our Mission and Vision Mission: The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the State of Michigan. Vision: To be a premier gaming and horse racing regulatory agency through the effective application of laws and regulations in a reasonable, consistent and efficient manner. 2

3 How to Get Started Letter of Intent Required Obtain a Letter of Intent from the casino: a written statement from the casino s purchasing staff expressing the casino s interest in hiring you or your firm Submit the statement with your license application 3

4 Types of Goods and Services Gaming Related Directly related to the conduct of gambling Affect the play and results of gambling games or devices (dice, tables, gaming chips, tokens, security services, etc.) Non-Gaming Related Amenities such as dry cleaning or laundry services Goods such as fresh fruits and vegetables, beverages Services such as snow removal 4

5 Automatic Exemption A person or entity providing no more than $50,000 worth of non-gaming-related goods or services to each casino licensee in any rolling 12- month period may receive an automatic exemption The MGCB does not require submission of documentation or fees for review at this level of business 5

6 Vendor Exemptions Anyone providing more than $50,000 worth of nongaming-related goods and services to a casino licensee in any 12-month period must obtain a vendor exemption. Allows a person or entity to conduct business with the Detroit casinos up to a monetary threshold of $400,000 per casino in any rolling 12-month period. Before exceeding the $400,000 threshold, a person or entity must secure a temporary supplier s license or an exemption in a different category of goods or services The vendor exemption form is found at (go to Licensing> forms>vendors> exemption application form) 6

7 Vendor Exemption: Disclosure Requirements Who Must Disclose Information Applicant Owners holding over 25% Principal Officers (CEO, CFO, COO) Agreement Holder Disclosure Information Required General Information Criminal History Tax Liabilities/Deficiencies Releases and IRS Form 4506Ts 7

8 Supplier Licensing Exemptions The MGCB may waive the supplier licensing requirements in certain circumstances for non-gaming suppliers providing goods or services to a casino licensee. Examples include but are not limited to: Publicly Traded Domestic Corporation Law Firm Professional Entertainer Media Outlet Medical Corporation Insurance Company Theatre Ballroom Hall Arena Park Stadium Golf Course Special Event Venue Financial Institution Public Institution Documentary evidence must be submitted. For additional examples and more details, see the MGCB website 8

9 When Is A Supplier License Required? Gaming Related Entities providing a casino licensee with goods or services directly related to the conduct of gaming, or which otherwise directly affect the play and results of gambling games, must obtain a supplier license Non-Gaming Related Typically an entity that exceeds $400,000 worth of goods or services to each casino licensee in any rolling 12-month period must obtain a supplier license prior to reaching the $400,000 threshold 9

10 Licensure: Disclosure Requirements Who Must Disclose Information Applicant Owners holding over 1% (or 5% if publicly traded) Principal Officers (CEO, CFO, COO) Board of Directors Owners, Principal Officers and members of the Board of Directors of Qualifying Businesses 10

11 Licensure: Disclosure Requirements Disclosure Includes General Information Criminal History Tax Liabilities/Deficiencies Tax Returns Net Worth Statements Releases and 4506Ts Onsite Investigation Other supporting schedules and documentation A temporary license may be available prior to the completion of the background investigation 11

12 Licensing Fee Structure Gaming Related Fee >$0 License Required $5,000+ Non-Gaming Related (per casino over 12 months) $0 $50k Automatic Exemption $0 $50 - $400k Vendor Exemption $200 Over $400k License Required $5,000+ Renewals Vendor Exemption Renewal application and $100 renewal fee required Supplier License Renewal application and $5,000 license fee required 12

13 MGCB Website: More Resources For more information: See Click the licensing tab (home page, left side) Licensure Determination Flowchart: Helps you determine the appropriate licensure level and applicable applications Forms: Everything you need to apply 13

14 Contact Information Vendor Exemption Telephone: (313) Supplier License Telephone: (313)