On July 17, 1997, with the approval of then-Governor John Engler, the Michigan Gaming and Revenue Act took effect. The bill permitted up to three casinos in Detroit, established the Michigan Gaming Control Board and imposed an 18 percent tax rate on gross gaming revenues. Previously in a statewide referendum, voters had approved casino gambling. In the following two decades, Detroit’s casinos have paid out more than .5 billion in tax, with .9 billion going to statewide education programs, according to gaming board figures.
In 2004 the measure was amended to lower the state tax rate to its current level of 8.1 percent; however, Detroit’s three casinos are required to pay 10.9 percent of their gross gaming receipts to the city. As a result, the city of Detroit has received $2.6 billion in 20 years of casino gambling.
Richard Kalm, executive director at the Michigan Gaming Control Board since 2007, said, “The Michigan Gaming Control Board grew from 19 people hired in 1997 to 138 people today. The agency regulates not only the Detroit casinos but also parimutuel horseracing and charitable casino-style gaming. It additionally audits twelve tribes’ compliance with compacts covering 23 tribal casinos. For 20 years, the Michigan Gaming Control Board has been dedicated to protecting Michigan’s citizens by ensuring the integrity of gaming.”
Kalm continued, “Through the years, we oversaw the move from temporary to permanent casinos, watched the addition of hotels and other amenities and weathered the Greektown Casino Hotel bankruptcy. The Michigan Gaming Control Board has worked hard for 20 years to represent the interests of Michigan citizens while allowing the casinos’ management to run their businesses with reasonable oversight. The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the state of Michigan.”
MGM Grand Detroit opened in July 1999 with a casino and a 400-room hotel. Five months later, MotorCity Casino Hotel opened, owned by Ilitch Holdings Incorporated. In November 2000, the 30-story Greektown Casino Hotel, now operated by Jack Entertainment, began operations.
Also since 1997, the Michigan Gaming Control Board has licensed or registered more than 1,400 businesses, including 800 native firms, that supply goods and services to the state’s casinos.
Kalm added more than 6,800 Michigan residents are licensed to work at the state’s casinos. “We conduct background investigations to determine the applicant’s suitability to work in the casinos,” he said. Sever thousand more, including hotel and kitchen staff, are not required to be licensed.
Kalm also noted more than 4,000 problem gamblers have placed themselves on the state’s lifetime voluntary exclusion list since the program started in 2001.
