The Michigan Gaming Control Board has withdrawn its membership from the National Council on Problem Gambling after Kalshi joined the council, breaking with the group over a partnership the state regulator says clashes with its enforcement and responsible-gaming mission.
In a July 1 letter, MGCB executive director Henry Williams said Kalshi was, and may still be, actively involved in offering unlicensed sports gambling in Michigan. He pointed to Michigan’s June 29 temporary restraining order against the company and said Kalshi was also still offering the products in other states while facing lawsuits nationwide.
Williams said the NCPG arrangement creates substantial confusion by suggesting Kalshi is subject to the same consumer protections, licensing requirements and regulatory oversight as licensed sports betting operators. He said that blurs a distinction the MGCB is required to enforce and weakens state regulatory positions more broadly.
He also argued that Kalshi’s effort to describe sporting event contracts as investment or insurance products undermines responsible-gaming messaging. In his view, treating internet sports betting as a way to gain financially or hedge against losses increases the risk of irresponsible and problem gambling behavior.
The board said its employees will no longer serve on any NCPG board or committee and will no longer attend NCPG events, including the annual conference. It also cancelled its paid sponsorship for the conference scheduled for the end of July and asked that all references to MGCB’s membership or affiliation be removed immediately.
Williams, who was appointed MGCB executive director in 2021 by Gov. Gretchen Whitmer, wrote that continuing the relationship is inconsistent with the agency’s mission, statutory responsibilities and commitment to protecting the public from problem gambling in Michigan. Michigan’s responsible-gaming materials say the agency regulates commercial casinos, horse racing, millionaire parties, internet gaming, internet sports betting and fantasy sports, and provides information and resources, including a hotline that connects callers to the state Problem Gambling Helpline.
The split follows NCPG’s May 18 announcement that Kalshi would become its first Financial Services and Trading Subcategory member. NCPG said the company was making a $2 million, two-year investment to support its Financial Trader Health and Safety Initiative.
NCPG said the initiative was meant to address behavioural risks linked to emerging financial trading platforms and prediction markets, and to build national capacity through infrastructure, public awareness, support, research, education and collaboration. The council also said it was evaluating its Internet Compliance Assessment Program for possible adaptation across the financial services and trading sector.
Kalshi has said it operates a federally regulated exchange where users trade on future event outcomes, and that it offers trading breaks, self-limits, self-exclusion and mental-health resources. Its spokesperson said the company disagreed with Michigan’s decision and would fight it in court, while implementing the temporary Michigan geolocation requirements in the meantime.
