Michigan Regulator Quits Problem Gambling Council Over Kalshi Partnership as Fight Against Prediction Markets Escalates

The Michigan Gaming Control Board (MGCB) is withdrawing from the National Council on Problem Gambling (NCPG), citing the organization’s partnership and investment relationship with prediction market operator Kalshi. The move expands Michigan’s campaign against the company beyond the courtroom and into the responsible gambling sector, just days after regulators secured a temporary restraining order against Kalshi’s sports event contracts in the state.

MGCB Executive Director Henry Williams confirmed the withdrawal this week, arguing that NCPG’s ties to Kalshi undermine state-level gambling enforcement and consumer protection efforts that Michigan has spent years building around its licensed sports betting market.

A Restraining Order Sets the Stage

The decision follows a ruling from the Ingham County Circuit Court granting a temporary restraining order against KalshiEX, immediately barring the platform from offering sports-related event contracts to Michigan residents. Judge Rosemarie Aquilina signed the order, which threatens fines of up to $120,000 per day for any noncompliance.

That legal fight is part of a broader, multi-state pushback against prediction markets offering sports contracts that regulators argue function identically to traditional sports betting, despite operating outside state licensing and consumer protection frameworks.

Williams Accuses Kalshi of Misleading Framing

In a letter addressed to NCPG Executive Director Heather Maurer, Williams sharply criticized Kalshi’s characterization of its sports event contracts as investment or insurance products rather than gambling. “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 undermine a foundational message of responsible gaming: that gambling in any form is for entertainment purposes only,” Williams wrote.

Michigan has repeatedly stressed that licensed sportsbooks in the state must comply with strict consumer protections, including age verification, self-exclusion programs, and deposit limits. Regulators contend Kalshi offers functionally similar wagering products while sidestepping those same requirements.

Williams also warned that NCPG’s partnership with Kalshi risks creating public confusion about regulatory oversight. “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,” he stated.

What It Means for the Prediction Markets Fight

Michigan joins a growing list of states pushing back against prediction markets that offer sports-adjacent contracts without traditional gaming licenses. The MGCB’s decision to sever ties with a national responsible gambling organization over the issue underscores how seriously state regulators are treating the threat to their licensed markets, both from a revenue and consumer protection standpoint.

With the restraining order still in effect and daily fines on the table, Kalshi’s path back into Michigan’s sports contract market remains uncertain, and the fallout from this dispute could influence how other states approach similar partnerships between prediction market operators and gambling harm prevention groups going forward.