Michigan Online Casino Licensing Process and Requirements

Michigan Gaming Control Board oversees all online casino licensing in the state through comprehensive regulatory framework established under the Lawful Internet Gaming Act. The licensing structure differs from other US states by requiring partnerships between online operators and existing land-based casino license holders — either Detroit’s three commercial casinos or Michigan’s federally recognized tribal gaming entities.

This partnership requirement creates barriers to entry while ensuring online gambling remains connected to established, vetted gaming interests. 

The MGCB doesn’t issue standalone internet gaming licenses. Instead, land-based casinos sponsor online platforms after operators complete extensive vetting processes.

Operators seeking Michigan licensure must submit detailed applications demonstrating financial stability, technical capability, and regulatory compliance history. The MGCB reviews applications through multi-stage evaluation examining corporate structure, ownership, financial health, and gaming experience.

Applications include comprehensive corporate structure information:

• Articles of incorporation and bylaws for applicant entity and all parent companies
• Ownership charts showing all individuals and entities with 5% or greater equity stakes
• Shareholder agreements, operating agreements, and partnership documents
• Corporate resolutions authorizing the license application
• Certificate of good standing from state of incorporation

The MGCB traces ownership through multiple corporate layers to identify ultimate beneficial owners. Shell companies and complex ownership structures require additional documentation explaining relationships and fund flows. Regulators verify that no prohibited individuals hold ownership interests directly or indirectly.

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Applicants must demonstrate financial resources sufficient to operate online casino sustainably while protecting player funds. Required financial documentation includes:

1. Three years of audited financial statements for applicant and parent companies
2. Bank references from primary financial institutions
3. Credit reports from major reporting agencies
4. Tax compliance verification from IRS and state revenue departments
5. Capitalization plans showing funding sources for Michigan operations
6. Pro forma financial projections for first three years of Michigan operations

The MGCB evaluates whether applicants can withstand operational losses during market entry, maintain adequate reserves for player payouts, and fund regulatory obligations including taxes and fees. Financially unstable companies get denied regardless of other qualifications.

All key personnel undergo extensive background investigations. The MGCB defines key personnel as:

• Executive officers (CEO, CFO, COO, General Counsel)
• Board members and directors
• Individuals with 5% or greater ownership
• Platform operators and technology providers
• Marketing directors and compliance officers

Each individual submits Personal History Disclosure forms detailing:

• Employment history for previous 10 years
• Residential addresses for previous 10 years
• Criminal history including arrests, charges, and convictions
• Civil litigation involvement as plaintiff or defendant
• Regulatory actions by any gaming jurisdiction
• Financial judgments, liens, or bankruptcies
• Professional licenses held or denied

Background investigations include FBI fingerprinting, multi-state criminal record checks, credit reports, and verification of disclosed information. The MGCB interviews references and may conduct in-person interviews with applicants.

Michigan requires gambling operators to demonstrate gaming industry expertise. The MGCB evaluates:

Regulatory History

• Current gaming licenses held in other jurisdictions
• Past license denials, suspensions, or revocations
• Disciplinary actions by regulators in any jurisdiction
• Compliance history including fines or warnings

Operators with poor regulatory records face scrutiny or outright denial. The MGCB shares information with other gaming regulators through Multi-Jurisdictional Personal History Disclosure forms and Association of Gaming Equipment Manufacturers databases.

Operational Capability

• Years of gaming industry experience
• Types of gaming operations managed (retail, online, tribal, commercial)
• Scale of operations in other markets
• Technical platform reliability and performance history

New entrants without gaming experience face additional requirements demonstrating capability. This might include hiring experienced management, partnering with established platform providers, or posting larger financial guarantees.

Vladyslav Lazurchenko mentions that all gaming systems deployed in Michigan undergo independent testing laboratory certification. The MGCB maintains an approved testing lab list. Operators submit technical specifications for:

• Random number generators
• Game servers and databases
• Player account management systems
• Geolocation verification technology
• Age verification systems
• Responsible gaming tools
• Anti-money laundering monitoring

Testing labs verify systems meet Michigan technical standards for security, fairness, and functionality. Certification typically takes 6-12 weeks depending on system complexity. Operators cannot launch until receiving technical approval certificates.

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Game manufacturers require separate approval before their titles can be offered in Michigan. The MGCB maintains lists of approved game providers and certified games. Major providers already approved include 

• NetEnt, 
• IGT, 
• Evolution, and 
• Scientific Games.

Newer or smaller providers like NextGen and Yggdrasil must complete their own approval processes before Michigan operators can offer their games. This involves:

1. Corporate background investigation of the provider
2. Financial stability verification
3. Game mathematics certification by approved testing labs
4. Technical integration testing with Michigan operator platforms
5. Compliance with Michigan game standards

Each individual game title requires certification before deployment. Operators cannot add new games without MGCB approval even if the provider is already approved. This creates delays when popular titles launch in other markets but await Michigan certification.

Michigan charges substantial fees throughout the licensing process and operational period:

These fees cover MGCB regulatory costs including staff salaries, investigations, and auditing. Revenue from fees supplements but doesn’t fully cover MGCB operations – gambling taxes fund the remainder.

Michigan currently licenses 14 online casino operators through various partnerships:

Commercial Casino Partnerships:

• BetMGM (MGM Grand Detroit)
• FanDuel Casino (MotorCity Casino)
• Caesars (Greektown Casino)
• WynnBET (Greektown Casino)

Tribal Partnerships:

• DraftKings (Bay Mills Resort & Casino)
• BetRivers Casino (Little River Casino Resort)
• PointsBet (Lac Vieux Desert Band)
• Golden Nugget (Gun Lake Tribe)

Additional operators include Barstool, TwinSpires, and several smaller platforms. Each partnership involves negotiated terms between the online operator and sponsoring casino regarding revenue sharing, operational responsibilities, and brand usage.

BetRivers Casino and FanDuel Casino represent different operational models. BetRivers operates as part of Rush Street Interactive’s multi-state platform, offering consistent experience across markets. FanDuel leverages its sports betting dominance to cross-promote casino products, creating integrated gaming ecosystems.

Licensing represents the beginning, not end, of regulatory obligations. Operators must:

Monthly Reporting

• Gross gaming revenue by game type
• Player account activity statistics
• Promotional credit issuance and redemption
• Responsible gaming tool usage data
• Geolocation verification success rates

Quarterly Submissions

• Financial statements showing Michigan operations
• Tax payments and reconciliation
• Self-exclusion database updates
• Problem gambling incident reports

Annual Requirements

• License renewal applications
• Updated financial statements and projections
• Key personnel background refreshes
• Technical system re-certification for modified software

The MGCB conducts periodic audits of licensed operators examining financial records, game integrity, responsible gaming implementations, and anti-money laundering programs. Audits can be scheduled or surprise inspections depending on risk assessment.

Operators violating Michigan gaming regulations face consequences ranging from warnings to license revocation:

1. Written warnings for minor first-time violations
2. Financial penalties from $1,000 to $100,000 depending on severity
3. License suspension for serious violations pending corrective action
4. License revocation for egregious violations or repeated non-compliance

The MGCB publishes enforcement actions on its website, creating reputational consequences beyond financial penalties. Operators facing actions in Michigan may see increased scrutiny in other jurisdictions where they’re licensed.

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Michigan gaming licenses require periodic renewal – typically every five years. Renewal applications involve:

• Updated financial statements
• Refreshed background checks for key personnel
• Compliance history review
• Technical system re-certification
• Payment of renewal fees

The renewal process is less intensive than initial licensing but still requires substantial documentation. Operators with clean compliance records face streamlined reviews. Those with violations undergo enhanced scrutiny before renewal approval.

Michigan’s regulatory framework balances market access with consumer protection. The partnership requirement limits operator numbers while ensuring quality. Extensive vetting processes protect players from fraudulent or financially unstable operators. 

Ongoing compliance obligations maintain standards throughout operational periods. This comprehensive oversight makes Michigan one of America’s most thoroughly regulated online casino markets.