Michigan regulator approves license renewals for Detroit casinos, passes resolution to support small businesses

The Michigan Gaming Control Board (MGCB) announced Tuesday that Board Members have unanimously approved the one-year renewal of licenses for Detroit’s three commercial casinos, including MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown. The Board also passed a resolution to allow more small businesses to provide goods and services to the Detroit casinos.

As reported by the regulator, the decision to renew the commercial casinos’ licenses followed a thorough review of the operations and compliance of each casino, as required per the Michigan Gaming Control and Revenue Act, "demonstrating their commitment to upholding gaming regulations and promoting a safe and responsible gaming environment in the city."

"I am pleased to announce the unanimous approval of the license renewals for Detroit’s three authorized commercial casinos," said MGCB Executive Director Henry Williams. "This decision reaffirms our confidence in the casinos' commitment to maintaining high standards of integrity, security, and fairness in their operations. We look forward to continued cooperation with the casinos to ensure the best possible experience for patrons while prioritizing responsible gaming practices."

Henry Williams

"The renewal of these licenses underscores the MGCB’s dedication to fostering a thriving and well-regulated gaming industry in Michigan that benefits the City of Detroit and its residents," the MGCB stated.

Licensees are taxed 18% on adjusted gross receipts and remit their wagering tax daily via electronic funds transfer. The state receives 8.1% and the City of Detroit receives 9.9% of the wagering tax plus development agreement payments. The casinos also pay an 8.4% tax on retail sports betting qualified adjusted gross receipts, as well as an annual fee to cover the state’s regulatory expenses.

A table detailing how tax revenue is distributed for Internet gaming, internet sports betting, and fantasy contests is available on the agency's website. The three Detroit casinos will each be eligible for license renewals again next year, in August 2025.

In a move to boost opportunities for small businesses, the Board also passed Board Resolution 2024-03, introducing changes to vendor exemptions and waivers under the Michigan Gaming Control and Revenue Act. Notable changes include revisions offering subcontractors greater flexibility by allowing them to provide up to $500,000 in nongaming-related goods and services to each casino licensee annually, alongside their construction-related services, without the two amounts conflicting.

"This adjustment, known as the 'Subcontractor 2' exemption, aligns with the Board's commitment to fostering a more inclusive and diverse supplier landscape within the Detroit casino industry," said Williams. "Enabling subcontractors to operate similarly to vendor-exempt businesses brings significant positives for businesses, providing new job opportunities and driving economic growth within the industry."

The next regularly scheduled public meeting of the MGCB will take place at 9:30 a.m. on Tuesday, September 10, 2024.