Detroit’s three casinos will live to see another day, as the Michigan Gaming Control Board (MGCB) voted unanimously to renew the licenses of MGM, Hollywood Casino at Greektown, and MotorCity on Tuesday.
The licenses – which are granted in one-year increments – must be approved by the board individually.
“A casino license is a privilege granted by the State of Michigan,” Henry Williams, the executive director of the MGCB, said in a press release announcing the renewals. “Board members and agency staff take seriously our responsibilities when reviewing this privilege each year as required by law.”
According to the release, the Michigan Gaming Control & Revenue Act established the casino license application process (Section 432.205) and the information applicants must share with the MGCB. Additionally, the MGCB must also consider the “integrity, moral character and reputation, business probity, financial ability and experience, and compulsive gambling programs adopted and implemented by the casino” when contemplating whether to renew a license.
Each of the three casinos are taxed at 18% on adjusted gross receipts and must pay the taxes on a daily basis. The state of Michigan receives 8.1% of the tax, and the city of Detroit gets the other 9.9%.
On the sports betting side of the ledger, the casinos must pay 8.4% of qualified adjusted gross receipts (QAGR).
As part of the licensing process, each casino must promote responsible gaming, including the display of the state’s gambling helpline number (800-270-7117) at each entrance and exit, on all electronic funds transfer terminals, and on all advertisements and promo materials.