The Michigan Gaming Management Board is chopping ties with the Nationwide Council on Downside Playing after the group introduced a membership and funding partnership with prediction market operator Kalshi.
In a July 1 letter to NCPG Govt Director Heather Maurer, Michigan Gaming Management Board Govt Director Henry Williams mentioned the partnership clashes with the company’s mission to advertise accountable gaming whereas imposing the state’s playing legal guidelines. Together with ending its membership, the board is canceling its sponsorship of the group’s annual convention later this month and withdrawing from NCPG committees, boards and occasions.
Michigan Gaming Board cites accountable gaming considerations in relation to Kalshi
Williams tied the choice on to Michigan’s authorized battle with Kalshi. The state secured a short lived restraining order towards the corporate on June 29, 2026, after alleging Kalshi was providing unlicensed sports activities betting to Michigan residents by way of sports-related occasion contracts. In response to Williams, Kalshi continues providing related merchandise in different states whereas going through litigation throughout the nation.
The state’s problem follows a lawsuit filed in March by Michigan Legal professional Common Dana Nessel, who accused Kalshi of working what amounted to an unlicensed sportsbook whereas presenting itself as a monetary buying and selling platform. The criticism argued that clients may buy contracts tied to sporting occasions, with payouts decided fully by recreation outcomes. Michigan contends these contracts violate the Lawful Sports activities Betting Act as a result of they perform as sports activities wagers with out approval from the Michigan Gaming Management Board.
Williams mentioned he believes Kalshi is pursuing a wider effort to reshape the playing business by difficult state gaming rules and client safety requirements. He argued that NCPG’s partnership with the corporate undercuts enforcement actions pursued by Michigan and different state regulators.
The letter additionally centered on how Kalshi characterizes its merchandise. Williams mentioned describing sports activities occasion contracts as funding or insurance coverage merchandise conflicts with a core precept of accountable gaming.
He wrote that portraying web sports activities betting as a technique to earn monetary returns or hedge losses weakens the long-standing message that playing must be seen as leisure moderately than an funding and will enhance the chance of irresponsible playing conduct and downside playing.
Williams additionally argued that the partnership may confuse customers by implying Kalshi operates below the identical licensing requirements, client protections and regulatory oversight as licensed sportsbooks. He mentioned that’s not the case and warned that any affiliation blurring these distinctions interferes with the board’s statutory tasks.
Michigan’s place is unfolding alongside authorized disputes involving prediction markets. Earlier this yr, a federal decide rejected Polymarket’s request for an emergency injunction that will have blocked potential enforcement by Michigan officers. The court docket discovered the corporate had not proven it was prone to succeed on its declare that federal commodities legislation preempts state playing regulation or that speedy enforcement towards it was imminent.
Williams added that remaining an NCPG member is now not in line with the company’s mission of defending Michigan residents and selling accountable gaming. He instructed the group to take away all references to the Michigan Gaming Management Board’s membership and convention sponsorship.
“I remorse that this motion is critical however belief you perceive the MGCB’s want to make sure that it’s not related to organizations which can be affiliated with corporations engaged in unlawful playing,” Williams wrote.
Featured picture: Kalshi / Canva
