Section R. 432.21111 - Summary suspension proceedingsRule 111.
(1) To advance the public policy of prohibition against all gambling activities not conducted in strict conformance with expressed legislative exceptions, including the regulatory framework established by the act, the commissioner may summarily order the suspension of a license as provided by section 16(1) of the act and in accordance with section 92 of the Administrative Procedures Act, upon a determination that any 1 or more of the following circumstances exist: (a) The licensee has obtained the license by fraud, misrepresentation, or concealment.(b) The decision to issue the license was a product of a material mistake of law or fact.(c) The licensee or lessor has engaged in an act, practice, or course of conduct that would operate as a fraud or deceit on a person or persons, or has employed a device, scheme, or artifice to defraud a person or persons.(d) The licensee or lessor has repeatedly violated, or repeatedly failed or refused to comply with, any of the provisions, requirements, limitations, or duties imposed by the act, these rules, terms of probation, directives of the bureau, public policy of the state of Michigan, or any other local, state, or federal law or regulation after having been previously notified by the bureau that a violation or violations of the same or similar provisions had been, or were being, committed by the licensee or lessor.(e) The licensee, lessor, or any owner, shareholder of the privately held corporation, partner, officer, or agent of the licensee has been charged with or convicted of a violation of the act.(f) The licensee or lessor has or there is reasonable cause to believe the licensee or lessor engaged in illegal gambling, or a fraud or larceny offense.(g) That the immediate cessation of the licensed gaming event by the licensee is necessary for the protection or preservation of the welfare of the community within which these activities are being conducted, or for the protection or preservation of public policy of the state of Michigan, or any other local, state, or federal law or regulation respecting unlawful gaming activity.(2) If the commissioner summarily suspends a license, then the licensee shall be afforded a prompt hearing before the bureau on the question forming the basis of the suspension of the license.Mich. Admin. Code R. 432.21111