MGCB Reviewing Casino Comp Programs

MGCB Reviewing Casino Comp Programs

8/28/2008
By: Robert W. Stocker II Michigan Gaming Control Board Resolution 2006-01 sets forth a variety of situations in which exemptions and waivers from supplier licensing requirements may be obtained. The Resolution includes provisions for granting exemptions for casino "Comp Programs" subject to meeting several enumerated conditions. The Comp Programs exemption was developed at the request of local restaurants wishing to participate in Greektown Casino's Comp Program. At the August 12th Board meeting, it was disclosed that since the inception of the Comp Program exemption in 2006 approximately $43 million dollars has been paid to local businesses participating in the Comp Programs. It was also reported that several of the local business participants have received in excess of $1 million dollars by virtue of their participation in the casino Comp Programs. Expressing surprise at the total amount of payments made under the Comp Programs, the Board requested that the Board staff prepare a report on the operation of the Comp Programs for review by the Board. It is anticipated that the Board staff will provide a report on the Comp Programs to the Board at the Board's October 8th Board meeting. It will then be up to the Board to review the report and decide what modifications, if any, it wants to make to Board Resolution 2006-01. It remains uncertain what the final outcome of this review of the Comp Programs will be. However, from comments made by members of the Board, it is likely that the casino Comp Programs will be modified in some respects. Modifications in the exemption provisions could result in some of the local businesses participating in the Comp Programs being required to be licensed as non-gaming suppliers by virtue of the amounts received by them in connection with the Comp Programs.
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