- Exemptions (from Supplier Licensing Requirements)
- Vendor Exemptions (for Non-Gaming Companies doing less than $400k/year)
Exemptions (from Supplier Licensing Requirements )
The Michigan Gaming Control Board may waive the supplier licensing requirements in certain circumstances to nongaming suppliers providing goods or services to a casino licensee where the criteria set forth in Rule 432.1322(4) and Resolution 2017-2 are met. Rule 432.1322(4) provides that the Board may exempt any person or field of commerce from the supplier licensing requirements of its administrative rules if the Board determines that any of the following provisions apply to the person or field of commerce:
a) The person or field is an agency of state, local, or federal government.
b) The person or field is regulated by another regulatory agency in Michigan.
c) The person or field will provide goods or services of insubstantial or insignificant amounts or quantities.
d) Licensing of the person or field is not deemed necessary to protect the public interest or accomplish the policies and purposes of the act. Governmental agencies and the United States Postal Service to the extent that such agencies provide services related to their agency function to a casino licensee.
Resolution 2017-2 provides that the Executive Director may grant exemptions from the supplier licensing requirements to nongaming related suppliers described below:
- Governmental agencies and the United States Postal Services to the extent that such agencies provide services related to their agency function to a casino licensee.
- Businesses regulated by another regulatory agency in the State of Michigan.
- Businesses that provide goods or services in insubstantial or insignificant amounts or quantities (factual basis required).
- Businesses that consider licensing unnecessary to protect the public interest or to accomplish the policies and purposes of P.A. 69 of 1997 (factual basis required).
- A medical corporation, partnership, sole proprietorship, or other business entities authorized to transact business in Michigan, to the extent such entities provide medical related services to a licensee.
- Insurance companies licensed or authorized to transact business in Michigan by the Michigan Office of Financial and Insurance Services to the extent such companies provide insurance related services to a licensee.
- Michigan public institutions of higher education to the extent such institutions provide education related services to a licensee.
- Public utilities regulated by the Michigan Public Service Commission to the extent such entities provide regulated utility related services to a licensee.
- Publicly traded entities. Applicant must provide documentary evidence demonstrating that Applicant is a publicly traded domestic corporation under the regulation of the U.S. Securities and Exchange Commission, or a wholly-owned subsidiary of such a corporation, that derives less than 5 percent of Applicant's annual gross revenues from business with the Detroit casinos. The Executive Director may also grant an exemption to a publicly traded foreign corporation, or its wholly owned subsidiary, if it is determined the Applicant is bound by regulations substantially similar to those imposed by the U.S. Securities and Exchange Commission.
- A professional entertainer, sports figure and other celebrity engaged by a licensed casino to appear at casino-sponsored special entertainment or promotional event, and their respective individual agents. This exemption is not available to promoters or agents that provide their services to a licensed casino on a regular or continuing basis.
- A media outlet. Applicant must provide documentary evidence demonstrating that Applicant derives less than 5 percent of the Applicant's annual overall gross revenues from advertising by Detroit casino licensees.
- A provider of a facility or a host or sponsor of an event that presents advertising on behalf of or promotes a casino licensee including but not limited to theatres, ballrooms, halls, arenas, parks, stadia, golf courses, and other entertainment, recreational and sports facilities located in the State of Michigan.
- A provider of a facility that provides entertainment, recreational, or hospitality services to a casino licensee, that is a theatres, ballroom, hall, arena, park, stadium, golf course, or a special event venue, located in the State of Michigan.
- A Michigan or federally chartered depository financial institution to the extent that the entity provides financial related services to a licensee. This does not include financial institutions that provide financing to a licensee.
- Professional legal services.
- One-time transactions. Applicant who is engaging in a one-time transaction with a single casino and is not supplying goods or services on a regular and continuing basis, regardless of the amount of the transaction.
- Business travel services. A person who provides goods or services to a casino licensee as a result of the licensee's employees engaging in business travel, including transportation, lodging, food, and fuel providers.
- Employee training or professional development services to casino licensees.
- Work performance services. A person who provides conferences, seminars, publications, or memberships that will directly contribute to the work performance or professional development of the casino licensee's employees.
- Freight-forwarding services. A person who provides freight-forwarding services to a casino licensee if the person transports property for compensation in the ordinary course of business.
- Applicants for exemptions must submit documentary evidence in support of the request which demonstrates, to the satisfaction of the MGCB, that the applicant's business is an exempt field of commerce, or that it is not necessary to license the applicant to protect the public interest, or accomplish the policies or purposes of the state laws governing casinos.
- Examples of documentary evidence may include an affidavit of current licensure by another government agency; detailed proof of regulation by another agency that involves examination of the applicant's moral character, financial responsibility, and business probity and practices; or evidence that the applicant's supplier relationship with the casino licensee will be of short duration.