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The Michigan Gaming Control Board (MGCB) wrote a letter earlier this week to formally withdraw any association from the National Council on Problem Gambling (NCPG) over prediction market affiliations.
Recently, the NCPG became partners with Kalshi, a popular prediction market operator, which is the reason the MGCB is cutting ties with the organization.
Michigan regulators have notched two court wins against Kalshi and Polymarket last month. The MGCB is taking a hard stance against organizations who align themselves with unlicensed gambling operators.
The state offers 13 Michigan sports betting platforms, which are licensed through the MGCB. Many of these operators offer sign-up promotions, like these Michigan sports betting bonuses.
MGCB’s core objection
The MGCB has been one of the most aggressive regulators in fighting illegal gambling and unlicensed operators. Prediction markets, who’ve been offering sports contracts, do not have the same licenses as legal platforms.
In the MGCB’s formal withdrawal from NCPG membership, Executive Director Henry Williams made one thing clear:
“I regret that this action is necessary but trust you understand the MGCB’s need to ensure that it is not associated with organizations that are affiliated with companies engaged in illegal gambling.”
Kalshi has been ordered by a Michigan judge to halt any sports operations in the state. Last month, another judge made a similar ruling against Polymarket.
In Williams’ letter, he also noted that Kalshi is operating illegally in other states, facing multiple lawsuits.
The ‘entertainment purposes only’ argument
The MGCB believes sports wagering is for entertainment purposes only, which Williams addressed in the letter.
He took exception to the fact that Kalshi views sports contracts as investment products. He wrote:
“The notion that internet sports betting can and should be pursued as a viable means of financial gain or protection against financial loss undermines this position and increases the risk of irresponsible and problem gambling behavior.”
Williams went on to write that the NCPG’s alignment with Kalshi creates confusion suggesting prediction markets follow the same consumer protection protocols of licensed operators, which is not the case.
What’s changing
The MGCB is cutting all ties with the NCPG. Williams urged the NCPG to remove all references and membership affiliations with the MGCB immediately.
In addition, MGCB employees will no longer serve on any board or committee of the NCPG and will no longer attend events, including the annual conference. It is also cancelling all paid sponsorship for the conference at the end of the month.
The MGCB is sticking to its core values, which Williams referenced in the letter:
“After considering this matter, I have concluded that continuing our membership in NCPG is inconsistent with the MGCB’s mission, statutory responsibilities, and its commitment to responsible gaming and to protecting the public from the risks of problem gambling in Michigan.”
