Michigan Gaming Board Leaves National Council on Problem Gambling Due to Kalshi Membership

• The Michigan Gaming Control Board announced today it will be leaving the National Council on Problem Gambling
• The gaming regulatory board noted it is leaving due to Kalshi’s recent partnership with the National Council on Problem Gambling
• Michigan recently obtained a temporary restraining order against the prediction market operator

The Michigan Gaming Control Board has formally withdrawn from the National Council on Problem Gambling due to Kalshi’s recently announced membership with the organization.

Henry Williams, executive director of the Michigan Gaming Control Board (MGCB), noted in letter sent to the organization that its relationship with the National Council on Problem Gambling could no longer continue with the prediction market operator also being among its ranks.

“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,” Williams noted.

Avoiding Public Confusion

All references to the MGCB have been removed from the National Council on Problem Gambling’s (NCPG) website. Kalshi is currently listed as a “Platinum Member” of the NCPG, which requires annual membership dues between $8,000 and $15,000. It is the highest level of NCPG membership, which is also held by the likes of DraftKings, FanDuel, Major League Baseball, and several other organizations.

Williams criticized the NCPG’s decision to allow Kalshi membership, noting that Kalshi is involved in a number of lawsuits against states as means to overstep “countless regulations and the consumer-protection safeguards which Michigan and other states have enacted to protect their residents and uphold the integrity of sports betting.”

“Additionally, NCPG’s partnership with Kalshi also creates substantial confusion by suggesting to the public that Kalshi is subject to the same consumer protections, licensing requirements, and regulatory oversight as licensed sports betting operators. It is not. Any affiliation which blurs this distinction undermines the MGCB’s statutory responsibilities and jeopardizes the clarity of the regulatory framework which it enforces,” Williams wrote.

Williams also pointed to Michigan’s recently obtained temporary restraining order against the prediction market operator as a reason for its membership withdrawal.

“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,” he wrote.

Judge Grants Temporary Restraining Order

A Michigan Circuit Court judge for the 30th Judicial Circuit, Ingham County, this week granted Michigan Attorney General Dana Nessel’s request for a temporary restraining order and preliminary injunction against prediction market operator Kalshi.

Judge Rosemarie E. Aquilina granted the motion, which requires Kalshi utilize a third-party service to geofence the state from its sports event contracts. The company will be prohibited from offering its sports event contracts in Michigan until Monday, July 13.

Elisabeth Diana, Head of Communications and spokesperson for Kalshi, noted earlier this week in a statement to Sports Betting Dime that the company will fight the decision in court, but will be implementing the temporary Michigan geolocation requirements.

“It’s no surprise that we disagree with the state’s decision and will fight it in court. Kalshi is subject to exclusive federal jurisdiction. We won’t be bullied by interests that care more about protecting their monopolies than their consumers. In the meantime, we’re implementing restrictions,” she said.