Michigan Gaming Regulator Leaves NCPG over Kalshi Partnership

DETROIT: The Michigan Gaming Control Board has withdrawn from the National Council on Problem Gambling over the council’s relationship with Kalshi.

The move adds a responsible gambling dispute to Michigan’s wider enforcement fight with the prediction market operator.

MGCB Executive Director Henry Williams told NCPG Executive Director Heather Maurer that Michigan was formally ending its membership. In a July 1 letter, Williams said Kalshi’s recently announced membership and investment partnership with the council conflicted with the regulator’s mission and enforcement responsibilities.

MGCB Says Kalshi Partnership Undermines Enforcement

Williams said Michigan strongly disapproved of Kalshi’s relationship with the NCPG because the company had offered what the MGCB views as unlicensed sports gambling in the state. He also said Kalshi was still involved in lawsuits with multiple states over its prediction market products.

The withdrawal comes shortly after a Michigan court temporarily blocked KalshiEX sports betting products in the state. That temporary restraining order required Kalshi to stop offering sports-related event contracts to Michigan residents or face daily fines.

In the letter, Williams said the NCPG relationship risked weakening state enforcement positions across the country. He argued that partnering with a company being challenged by state gaming regulators undermined consumer protection safeguards and the integrity of sports betting oversight.

The MGCB also said it did not want to be associated with organizations affiliated with companies it views as engaged in illegal gambling. Williams asked the NCPG to remove all references to the MGCB’s membership or affiliation immediately.

Responsible Gambling Message at Issue

Williams also objected to Kalshi’s description of sports event contracts as investment or insurance-style products. He said that framing undermines a basic responsible gambling message: that gambling should be treated as entertainment, not a way to generate financial gain or protect against loss.

The MGCB said that distinction matters because licensed sportsbooks in Michigan must follow consumer protection, licensing and oversight rules. Kalshi has argued that its products are federally regulated event contracts, not state-regulated gambling products.

Williams said the NCPG partnership could create public confusion by suggesting Kalshi is subject to the same protections as licensed sports betting operators. He said Kalshi is not subject to those same state licensing requirements in Michigan.

The regulator said any affiliation blurring that distinction undermines the MGCB’s statutory duties and the clarity of the regulatory framework it enforces.

Conference Sponsorship Also Canceled

The MGCB said its employees will no longer serve on NCPG boards or committees and will no longer attend NCPG events. The regulator also canceled its paid sponsorship for the NCPG conference scheduled for the end of July.

Williams said the agency would follow up to ensure references to MGCB sponsorship were removed. He said continuing NCPG membership was inconsistent with the agency’s commitment to responsible gaming and protecting the public from problem gambling risks in Michigan.

The dispute shows how prediction markets are increasingly colliding with responsible gambling policy, not only state licensing rules. Michigan’s withdrawal places new pressure on the NCPG as regulators and industry groups debate whether sports event contracts should be treated as financial products or sports wagers.

For Michigan, the decision extends its Kalshi fight beyond the courtroom. The regulator is now also distancing itself from responsible gambling organizations that maintain formal relationships with companies it says are bypassing state gaming law.

RELATED TOPICS: Regulation