October 23, 2012
Time: 3:00 p.m.
Location: Cadillac Place, 3062 W. Grand Blvd., L-700 - Detroit.
DETROIT CASINO REVENUES & WAGERING TAXES FOR THE MONTH OF SEPTEMBER 2012
Casino Operations - September 2012
Aggregate revenue for the three Detroit casinos for the month ended September 30, 2012 was up by 0.2% when compared to the same month last year. Revenue was down by 2.4% when compared to the previous month, August 2012.
Revenue for MGM and Greektown was up by 4.5% to $50.0 million and 3.4% to $27.8 million respectively, whereas MotorCity was down 7.5% to $35.5 million when compared to September 2011.
The market shares for MGM, MotorCity, and Greektown for September 2012 were 45%, 31%, and 24% respectively.
For the month ending September 30, 2012, gaming taxes for the three Detroit casinos were $9.2 million compared to $9.2 million for the same period last year.
MICHIGAN GAMING CONTROL BOARD (BOARD) ESTABLISHES NEW SUPPLIER POLICIES
The Michigan Gaming Control Board issued a Board Resolution establishing new policies for non-gaming companies. The new resolution makes key changes in the following areas:
Automatic Non-Gaming Supplier Exemption Threshold Increased from $ 5,000 to $15,000
Board Resolution 2012-01 allows non-gaming vendors who supply up to $15,000 worth of goods or services to a casino licensee (up to a total of $45,000 in business with all 3 Detroit casinos) in any 12-month rolling period are now automatically exempt from the non-gaming supplier licensing requirements.
Vendor exemption registration and background information requirements remain for those non-gaming suppliers that exceed the revised threshold amounts.
Currently, of the approximate 1,011 vendors required to obtain a vendor exemption (i.e. registration and background investigation process), (approximately 658 or 65%) will no longer be required to be registered as a vendor with the Gaming Board. This allows small vendors to supply the three Detroit casinos seamlessly without having to engage in the regulatory process, thus making it cheaper, easier, and quicker to do business with the casinos.
Publicly-Traded Exemption Expanded to Foreign Publicly - Traded Companies
Board Resolution 2012-01 also allows for publicly traded non-gaming companies, whose stock is traded on a foreign exchange, to be considered for an exemption from licensing requirements. Previously only companies traded on a domestic exchange were considered for this exemption.
