Vendor Exemptions

The Michigan Gaming Control Board's Administrative Rule 432.1322(3) requires a person to hold a Supplier's License if non-gaming related business transactions with a casino licensee exceed certain monetary thresholds.

To effectively monitor when supplier licensing is necessary, the MGCB requires anyone providing non-gaming related goods or services in excess of $600.00 in any 12-month period to obtain a vendor exemption number from the MGCB. Each casino licensee is required to report to the MGCB information regarding its transactions with each supplier.

A supplier must submit to the MGCB an application for a Supplier License if any of the following conditions exist:

• A supplier has a direct contract with a casino licensee that exceeds $200,000 in any 12-month period.
• A supplier has contracts with more than one casino licensee that combined exceed $400,000 in any 12-month period.

The MGCB reserves the right to require any supplier to apply for a Supplier's License (even if monetary thresholds have not been met) if it is deemed necessary by the MGCB in order to protect the public interest, or to accomplish the policies and purposes of Michigan's casino law and MGCB Administrative Rules.

After a supplier and a casino licensee reach an agreement to conduct business, the casino licensee will assist the supplier in completing the required forms for the MGCB (each casino licensee has its own particular process for completing the form). See the Forms Section on this website to view a sample representation of the MGCB's Vendor Exemption Application Form and the Vendor Exemption Application Short Form. These forms cannot be downloaded from this website.

A completed vendor exemption form must be submitted to the MGCB by the casino licensee, not by the supplier.

Once a vendor exemption number has been issued, the MGCB will notify the supplier and begin monitoring the supplier's total sales of goods or services to the casino licensee(s).

Note - A supplier may begin providing goods/services to the casino licensee(s) as soon as a vendor exemption number has been issued by the MGCB. A supplier may not conduct business with any casino licensee unless the supplier is listed on the MGCB website.

Fees

The MGCB does not require a fee to process and issue a vendor exemption number.

Timeframe

The MGCB will make every effort to issue a vendor exemption number within one week from the date the vendor exemption information is received from the casino. However, the MGCB will take whatever time is necessary to conduct a thorough review of the vendor exemption information.

Vendor Exemption Number

An exemption that is based on the type of good or service provided permits the exempt person to provide only the goods or services encompassed by that exemption. Each casino licensee is required to notify the MGCB that a supplier has agreed to provide goods/services.

The casino licensee is responsible for reporting the supplier's total sales of goods/services to the MGCB.

Exceeding Monetary Thresholds

If the supplier knows prior to conducting business with a casino licensee that it will exceed the monetary thresholds for a vendor exemption, the supplier is required to file an application for a non-gaming supplier license or an application for supplier exemption.