The MGCB has withdrawn its membership from the NGCP over the council’s new partnership with prediction markets platform Kalshi.
The Michigan Gaming Control Board (MGCB) has formally withdrawn its membership from the National Council on Problem Gambling (NCPG), citing deep opposition to the council’s new partnership with prediction markets platform Kalshi.
In a letter dated 1 July, MGCB executive director Henry Williams expressed strong disapproval of Kalshi’s recent induction.
Kalshi joined the problem gambling group as a platinum-level member in May, committing a two-year $2m investment to the organisation.
Williams stated that the affiliation directly undermines state enforcement actions against prediction markets. It also risks weakening the regulatory positions of state bodies nationwide, he wrote.
“I am deeply concerned that Kalshi’s attempts to distinguish sporting event contracts from other forms of sports betting by claiming that its offerings are akin to ‘investment’ or ‘insurance’ products directly undermines a foundational message of responsible gaming: that gambling in any form is for entertainment purposes only,” Williams wrote.
The NCPG had already addressed the decision to allow Kalshi to join, stating in June that it “does not advocate for or against the legality of specific products or platforms.”
Instead, its primary purpose is only to support “prevention, education, consumer protection, harm reduction, and access to care.”
It has not issued a response to Michigan’s decision to exit the organisation.
The decision comes amid an intensifying legal dispute between Michigan and Kalshi over alleged online wagering. The state obtained a temporary restraining order against the platform on 29 June.
The court order halts Kalshi from offering sports event contracts within Michigan borders. Regulators contend that Kalshi has actively offered unlicensed sports gambling in Michigan and other states.
Division in the gaming industry grows
The regulatory board raised concerns that the council’s tie with Kalshi creates substantial public confusion, by suggesting Kalshi faces the same consumer protections and licensing requirements as authorised sports betting operators.
Williams argued that Kalshi does not and that the company treats its contracts as financial products like investments or insurance.
Officials argue this positioning violates a foundational tenet of responsible gaming, that gambling must be used solely for entertainment purposes.
Michigan staff will immediately step down from all NCPG boards and committees. The state has also cancelled its paid sponsorship for the upcoming annual conference.
The council maintains a neutral stance on the legality of specific wagering products and has stated previously that corporate donations do not equal policy endorsements.
However, Kalshi remains locked in several federal and state regulatory battles, while it claims that exclusive regulatory oversight over prediction markets belongs to the federal Commodity Futures Trading Commission.
Michigan will continue its consumer protection efforts via its own domestic gaming channels. State officials deemed the national council relationship incompatible with protecting local residents.