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By Authority Conferred on the Michigan Gaming Control Board by Section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204)

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By Authority Conferred on the Michigan Gaming Control Board by Section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204) DEPARTMENT OF TREASURY MICHIGAN GAMING CONTROL BOARD CASINO GAMING (By authority conferred on the Michigan gaming control board by section 4 of the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.204) PART 1. DEFINITIONS R 432.1101 Definitions; A to C. Rule 101. As used in these rules: (a) "Act" means the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to 432.226. (b) "Application" means all materials and information comprising the applicant's request for a casino license, supplier's license, or occupational license submitted by the applicant to the board, including, but not limited to, the instructions, forms, and other documents required by the board for purposes of application for a license under the act and these rules. (c) "Associated equipment" means any of the following: (i) Any equipment which is a mechanical, electromechanical, or electronic contrivance, component, or machine and which is used indirectly or directly in connection with gaming. (ii) Any equipment that would not otherwise be classified as a gaming device, including, but not limited to, links, modems, and dedicated telecommunication lines, that connects to progressive electronic gaming devices. (iii) Computerized systems that monitor electronic gaming devices, table games, and other gambling games approved by the board. (iv) Equipment that affects the proper reporting of gross receipts. (v) Devices for weighing and counting money. (vi) Any other equipment that the board determines requires approval as associated equipment to protect the integrity of gaming and ensure compliance with the act and these rules. (d) "Attributed interest" means any direct or indirect interest in a business entity deemed by the board to be held by an individual through holdings of the individual's immediate family or other persons and not through the individual's actual holdings. (e) "Bill validator" means an electromechanical device attached either on or into an electronic gaming device for the purpose of dispensing an amount of credits equal to the amount of cash or cash equivalency inserted into the bill validator. (f) "Board" means the Michigan gaming control board. Page 1 Courtesy of www.michigan.gov/orr (g) "Board surveillance room" means dedicated office space in each casino for the exclusive use of the board for the monitoring and recording of gaming or any other activities. (h) "Cash" means United States currency and coin or foreign currency and coin that has been exchanged for its equivalent United States currency and coin value. (i) "Cash equivalent" means an asset that is readily convertible to cash, including, but not limited to, any of the following: (i) Travelers checks. (ii) Certified checks, cashier's checks, and money orders. (iii) Personal checks or drafts. (iv) Credit extended by the casino licensee, a recognized credit card company, or banking institution. (v) Any other instrument that the board deems a cash equivalent. Other than recognized credit cards or credit extended by the casino licensee, all instruments that constitute a cash equivalent shall be made payable to the casino licensee, bearer, or cash. If an instrument is made payable to a third party, then the instrument is not a cash equivalent. (j) "Casino critical computerized systems" means 1 or more computer systems which are approved by the board and which meet all of the following requirements: (i) Are connected to all electronic gaming devices in the casino to record and contemporaneously monitor the play and cash flow and security of each electronic gaming device. (ii) Are capable of monitoring the activities of the live gaming devices, including, but not limited to, any of the following or their equivalents: (A) Table fills. (B) Table credits. (C) Table gaming receipts, disbursements, and revenues. (iii) Are capable of tracking the activities of the live gaming devices, including, but not limited to, either of the following or their equivalents: (A) Table game inventories. (B) Employee gratuity receipt and disbursement accounting. (iv) Are capable of monitoring the activities of the main bank and all cages, including, but not limited to, either of the following or their equivalents: (A) Manual payouts. (B) Table credits and fills. (v) Are capable of tracking the activities of the main bank and all cages, including, but not limited to, any of the following or their equivalents: (A) Receipt and record of soft count. (B) Record of gaming receipts, disbursements, and revenues. (C) Cashier checkout. (D) Main bank and cage inventory. (E) Deposits. (F) Cash transaction reports. (G) Patron credit. (vi) Are capable of monitoring the casino licensee's casino accounting package. Page 2 Courtesy of www.michigan.gov/orr (vii) Are linked by dedicated telecommunication lines to board-designated computer terminals located in board offices on and off the casino premises. The terminals shall be able to access, receive, and display the information required and prescribed by the board. (k) "Casino license" means a license issued by the board to a person to own or operate a casino in this state under the act. (l) "Casino operations" means operations of a casino or a casino enterprise other than gambling operations, including, but not limited to, the purveying of food, beverages, retail goods and services, and transportation. (m) "Casino surveillance room" means a room or rooms at each casino for monitoring and recording casino operations and gambling operations by the casino licensee. (n) "Certificate of suitability" means a written document issued by the board certifying that an applicant has been chosen for licensure if the applicant meets all of the following: (i) The conditions of a certified development agreement with a city. (ii) The conditions set forth by the board in the certificate of suitability and the requirements of the act and these rules. (o) "Chip" means a representation of value redeemable for cash only at the issuing casino and issued by a casino licensee for use in gaming, other than in electronic gaming devices. (p) "Contest" means a gambling game which is offered and sponsored by a gambling operation in which patrons of the gambling operation are assessed an entry fee to play the game or games and in which winning patrons receive a portion of or all of the entry fees that may be increased with cash and noncash prizes from the gambling operation. (q) "Counterfeit chips" means chip-like objects that have not been approved under these rules, including objects commonly referred to as slugs, but not including legal coins of the United States or any other nation. (r) "Count room" means the room or rooms designated for the counting, wrapping, and recording of a casino licensee's gaming receipts. History: 1998-2000 AACS; 2019 MR 9, Eff. May 17, 2019. R 432.1102 Definitions; D to F. Rule 102. As used in these rules: (a) "Debt instrument" means any of the following: (i) Bond. (ii) Loan. (iii) Mortgage. (iv) Trust. (v) Deed, when committed in any form as collateral. (vi) Note. (vii) Debenture. (viii) Subordination. (ix) Guaranty. (x) Letter of credit. (xi) Security agreement. Page 3 Courtesy of www.michigan.gov/orr (xii) Pledge. (xiii) Chattel mortgage. (xiv) Other form of indebtedness. (b) "Debt transaction" means a transaction in which a person that has applied for or holds a casino license or holding company or affiliate that has control of the applicant or holder of the casino license, acquires debt, including, but not limited to, bank financing, private debt offerings, or any other transaction that results in a change of encumbrance of more than 1% in capitalization or debt-to-equity ratio of the licensee, applicant, holding company, or affiliate of the applicant or holder of the casino license. (c) "Dependent" means any individual who received over 1/2 of his or her support in a calendar year from any other individual. (d) "Drop" means the total amount of EGD drop and table drop. (e) "Drop box" means the box attached to a live gaming device table or electronic gaming device that may be used to collect, items including, but not limited to, any of the following: (i) Currency. (ii) Tickets. (iii) Chips. (iv) Cash equivalents. (v) Damaged chips. (vi) Documents verifying the extension of credit. (vii) Request for fill and credit forms. (viii) Fill and credit slips. (ix) Error notification slips. (x) Table inventory forms. (xi) All other forms used by the casino licensee and deposited in the drop box as part of the audit trail. (f) "Drop meter" means an electronic or mechanical device or devices, or both, that automatically and continuously count the number of dropped electronic gaming device credits. (g) “EGD drop” means the total value of currency and tickets collected from the drop box. If a patron is utilizing an electronic card, then the drop includes the amount transferred to an EGD. (h) “EGD win” means the EGD drop minus hand-paid jackpots, tickets issued, and electronic credits transferred from an EGD. (i) "Electronic card" means a card purchased from, or provided by, a casino licensee for use at the licensee's casino as a substitute for currency for the conduct of gaming. (j)"Electronic credit" means a value owed to a patron on an electronic gaming device. (k) "Electronic gaming device" or “EGD” means an electromechanical device, or electrical device or machine which, upon payment of consideration, is available to play or operate as a gambling game. The operation of the device or machine, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the device to receive any of the following, whether the payoff is made automatically from the machines or in any other manner: (i) Premiums.
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