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FAQ
  Supplier Licenses
What do construction suppliers need to know?
 
Answer:

The following questions and answers pertain to construction suppliers only. If you have questions about any information on this page, please contact the MGCB Licensing Division at 517/-241-0040, or send us an Email.

 

Supplier License applications may be found here.

 

Vendor Exemption Number applications may be found here.

 

 

What is the goal of the MGCB? - Our goal is to maintain a high level of integrity and confidence in the casino gaming industry in Michigan, and to prevent criminal activity. The MGCB also wants to assist developers in getting the proper documentation completed during the initial licensing and vendor exemption processes as soon as possible.

 

What is the casino licensee or its affiliates role in the application process? - The casino assists with the submission of applications, assuring they are complete, and that the appropriate fee is paid.

 

Are providers of building, construction or other materials/equipment used in a casino construction project required to obtain a supplier's license where the goods are being provided for use by another contractor to complete construction of the casino project?

Yes. A manufacturer, fabricator, distributor or material man having a subagreement greater than $8 million to furnish materials and/or equipment at the casino construction site is required to obtain a supplier's license. 

 

What is a Construction Vendor Exemption? -  A person who is a party to any contract or subcontract related to the construction of one or more of the permanent casino complexes who does not have a direct contract with a casino licensee or any of its affiliates related to construction of a permanent casino complex and whose contract for work to be performed on any single permanent casino complex is worth less than $8 million over the life of the contract.

 

Which construction providers of goods or services must complete the Vendor Exemption Application form? - All construction providers of goods or services identified for any casino construction project must complete the Vendor Exemption Form.

 

What distinguishes a Licensed Construction Supplier from a Vendor Exemption? - The following chart was developed to quickly answer some of the most frequently asked questions. This chart is intended as a general guide.  The MGCB may require any vendor to be licensed as a Supplier.  (Refer to MGCB Board Resolution 2006-01 for additional information)

 

If you . . .

Your status is

You must complete

 

Licensing
process

Vendor

Exemption
process

Are providing gaming goods or services.

Licensed

Supplier

Yes

No

Have a direct contract

with the casino licensee that exceeds $200,000

in any 12-month period.

Licensed

Supplier

Yes

Yes

Have contracts with

more than one

permanent casino

project.

Licensure is

based

on each permanent

casino construction project

Direct contract - Yes

Indirect contract less than $8 mil - No

Yes

Construction

 

 

 

Subcontractor

providing goods or services identified for casino construction projects that are

equal to or greater

than $8 million.

Licensed Supplier

(each

supplier 

would need to be licensed)

Yes

Yes

Subcontractors

providing goods

or services identified

for casino

construction

projects that

are less

than $8 million.

Vendor Exemption

* No

Yes

 

* The MGCB may require any party providing goods or services to any casino project to complete the licensing process.

 

Licensing

 

Will subcontractors be required to hold a license? - Subcontractors for construction are required to comply with licensing requirements stated in Board Resolution 2006-01. However, the MGCB reserves the right to require that any party, at any level, providing goods or services to any casino project to complete the licensing process.

 

May the casino licensee issue two-part contracts? For example, first contracting for shop drawings then contracting for the remaining services upon receipt of license. - Yes. However, the casino licensee assumes the risk that the supplier may not be approved for licensing. Rule 432.1221, paragraph 2 requires that all contracts contain "...a provision permitting the casino licensee or casino license applicant to terminate the contract if the board determines that the contract does not comply with the act and these rules."

 

Which gaming suppliers are required to hold a license? - All persons providing gaming-related goods and services must be licensed.

 

How do supplier license applicants obtain the proper forms? - The supplier may obtain an application package from the MGCB website or from the casino.

 

Is a temporary license required in hand before a casino may order materials from a supplier? - No, however a vendor exemption must be issued by the MGCB before person(s) can provide goods and/or services. The licensee assumes all risk should a contract be executed prior to the issuance of a vendor exemption.

 

Vendor Exemption Application Form

 

How can vendors receive the application forms? - Contact the casino licensee. The casino must submit the completed form to the MGCB in an electronic format. The casino is ultimately responsible for getting the data to MGCB.

 

What format will be used? - Each casino licensee will establish its own format; however, all data submitted to the MGCB must be submitted in an electronic format as specified by the MGCB.

 

Who at the MGCB is the casino contact regarding vendor issues? - The casino contact person at the MGCB is the Casino & Service Industry Section manager (phone 517/-241-0040).

 

When should the vendor exemption application form be submitted? - The "fast track" nature of each project necessitates submission of contractor and subcontractor Vendor Exemption Application forms and disclosure forms as soon as possible in order to provide adequate processing time.

 

How will vendor exemption application forms be prioritized? - The casino licensee should prioritize each submission. The MGCB is reliant upon each casino's input to expedite supplier and vendor application processing.

 

How are Vendor Exemption numbers issued? - The casino must submit a completed vendor exemption application form for all vendors. The Vendor Exemption Number will be issued while the MGCB background investigation is conducted.

 

Must vendor contracts contain a termination clause? - Yes. Rule 432.1221, paragraph 2, requires "...a provision permitting the casino licensee or casino licensee applicant to terminate the contract if the Board determines that the contract does not comply with the Act and these Rules."

 

When can vendors begin work? - Once the completed application form is forwarded to our office by the casino licensee, the vendor will be issued a Vendor Exemption Number. A vendor may begin providing goods or services to the casino licensee once a Vendor Exemption Number has been issued by the MGCB.

 

What if the MGCB finds a problem with a vendor? - Should the MGCB determine the vendor to be invalid, the casino must cease conducting business with the vendor.

 

If the Board determines that a Vendor Exemption Number is invalid, can that vendor be paid amounts due for goods or services provided prior to invalidation of the Vendor Exemption Number? - Invalidation of the Vendor Exemption Number does not preclude payment for performance of contractual obligations occurring prior to invalidation absent fraud or bad faith.

 

What is the grace period allowed for a vendor to submit an application for a supplier's license? - The MGCB will allow the vendor 30 days in which to make application for a supplier license.


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