Many casino suppliers will be required to be licensed by the Michigan Gaming Control Board (MGCB) in accordance with the Michigan Gaming Control & Revenue Act, as amended (Public Act 69 of 1997). The following is provided as a general reference to help you understand MGCB licensing requirements and procedures.
The MGCB issues Supplier Licenses to many suppliers of goods/services, depending on the kinds of goods/services provided and the total monetary value of those goods/services. Requirements for a Supplier License are usually more detailed than those for an Occupational (Employee) License.
Gaming-Related - All persons or businesses providing gaming-related goods/services to a casino must obtain a Supplier License regardless of the amount of business conducted. Gaming-related goods/services are those directly related to the conduct of gambling, or which otherwise affect the play and results of gambling games or devices (dice, tables, gaming chips, tokens, security cameras, etc.).
Non-Gaming-Related - Persons or businesses providing non-gaming-related goods/services must be licensed if the amount of the goods/services exceeds the following monetary thresholds:
1.$300,000 of nongaming-related goods and services to one casino licensee; or 2.$600,000 of nongaming-related goods and services to two or more casino licensees, but does not provide more than $300,000 of nongaming-related goods and services to any one casino license If you do not meet either of these monetary thresholds, you may qualify to obtain a Vendor Exemption.
Special Note - The Board adopted resolutions that may affect your need to be licensed as a Supplier. See Resolutions.
Resolution #1998-07- If your company provides goods/services during the construction phase
Resolution #1998-08- Need for Statement of Intent prior to processing Supplier License application
Also, see Exemptions from Supplier licensing requirements.
The first step to apply for a Supplier License is to contact the casino's Purchasing Department. If the casino wishes to conduct business with your company, you may need to complete a Supplier License application form (the casino will have information about whether you need to be licensed).
Your application must be accompanied by an Application Fee (the casino will have information about Application and Licensing Fees).
Upon receipt of the application and fee, the MGCB and its staff will conduct a background investigation of each applicant and will determine if a license should be issued.
An Occupational (Employee) License is required if the individual is employed by a supplier and his/her work duties are:
* Related to, or involved with, the gambling operation.
* Performed in a restricted area of a casino.
The MGCB will not process an application for a Supplier License without a written statement from the casino that the casino has contracted (or intends to contract) you or your company to provide goods/services. For this reason, you must first apply to the casino's Purchasing Department.
Fees
The MGCB requires a non-refundable *Application Fee from each Supplier License applicant. Application Fees are based on the dollar amount of business with all casinos in any rolling 12-month period. The MGCB also requires a License Fee upon issuance of a license and upon any renewal. Supplier licenses are valid for one year, and may be renewed by the MGCB.
Amount of Business with all casinos in any rolling 12-month period:
* Greater than $500,000 -Application Fee * $2,500/License Fee $5,000
* Less than $100,000 - Application Fee * $ 500/License Fee $5,000
* Application Fee is non-refundable, but may be reduced if it is later determined that the amount of business conducted was less than estimated when the fee was paid. The License Fee is $5,000, regardless of the amount of business conducted.
Temporary License
The MGCB may grant a Temporary license allowing a supplier to provide goods/services while the MGCB conducts its background investigation. To obtain a Temporary license, the applicant must:
* Submit an application, all required documentation, and the appropriate application fee.
* Submit a written statement from the casino that the casino intends to do business with the applicant.
* Pass a preliminary review of the application and criminal history investigation.
* Have no apparent deficiencies in the application that might warrant denial.
Timeframe
Depending on the Level of license required and extent of investigation deemed necessary by the MGCB, background investigations could take six weeks or more. The MGCB will make every reasonable effort to handle each application in the most judicious manner possible. However, the MGCB will take whatever time and energy it deems necessary to conduct a thorough investigation.
Appeal Process
Persons denied a license by the MGCB may appeal to a Circuit Court. You may wish to be represented by legal counsel, but it is not required.
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