The Michigan Gaming Control Board has fined MGM Grand Detroit 0,000 for violating multiple casino regulations.
The largest fine, $150,000, was for failing to properly supervise a former employee who allegedly embezzled $688,000 from the casino. The employee worked in the casino’s credit department.
A $100,000 fine was levied against the casino for using 3LK Construction as a middleman to get around rules for casino suppliers, such as soliciting three bids for a job. 3LK has offices in Detroit and Las Vegas.
The casino was fined $62,500 fine for using vendors that were not state-licensed suppliers. Vendors are required to have a supplier license from the gaming board after they exceed doing $300,000 in annual business with Detroit casinos.
A $25,000 fine was set for allowing a banned individual to gamble at MGM for several hours and to cash three checks at the cashier’s cage.
The casino also was fined $12,500 for allowing five minors to gamble and for serving some of them alcoholic drinks. The minimum age to enter a Detroit casino is 21.
Other alleged MGM violations—including using improper procedures for issuing tax forms to jackpot winners–did not result in fines.
MGM Grand attorney Peter Ellsworth of Dickinson Wright acknowledged all of the violations and said the casino accepts the penalties. “We’re satisfied we’ve negotiated a fair result here,” he said.
Some of the violations occurred as long ago as 2007. Richard Kalm, executive director of the gaming board, said the time lag was due to the Michigan State Police’s ongoing investigation into the embezzlement. However, board Chairman Robert Anthony said, “The idea behind moving on these actions and moving on the fines is to modify behavior. If it takes six years to get this thing resolved are we just playing a game where the regulators have to regulate and the casinos have to be regulated?”
The state gaming board also recently announced gambling revenues at Detroit’s three casinos rose 6.6 percent in October compared to October 2013. However, total revenues year-to-date in October were down 2 percent compared to the first 10 months of 2013. In October, MGM Grand’s revenues increased 1.6 percent, to $47 million, compared to last year; MotorCity Casino Hotel’s revenues rose 7.4 percent to $37.7 million; and revenues at Greektown Casino-Hotel increased 15 percent to $28.7 million. The three casinos brought in $9.2 million in casino taxes in October, compared to $8.6 million in October 2013.
