The Michigan Gaming Control Board (MGCB) has officially severed ties with the National Council on Problem Gambling (NCPG), citing a conflict of interest due to NCPG's partnership with Kalshi. This decision underscores MGCB's commitment to consumer protection and responsible gaming.
In a letter dated July 1, MGCB Executive Director Henry Williams informed NCPG Executive Director Heather Maurer that the board could no longer maintain its affiliation following NCPG's announcement of a membership and investment partnership with Kalshi in May.
This move comes shortly after a Michigan judge issued a temporary restraining order that prohibits Kalshi from offering sports-event contracts in the state. The ongoing legal dispute raises questions about the classification of federally regulated prediction markets under state gambling laws.
Williams expressed concern that Kalshi is actively involved in unregulated sports gambling in Michigan and is facing legal challenges in multiple states. He criticized the company's efforts to redefine sports-event contracts as investment or insurance products, arguing that this undermines responsible gambling principles.
He emphasized that promoting internet sports betting as a legitimate financial opportunity could lead to increased irresponsible gambling behaviors. Additionally, he warned that the NCPG's affiliation with Kalshi might confuse consumers regarding the company's regulatory status.
Williams concluded that remaining a member of NCPG was incompatible with MGCB's mission to uphold responsible gaming standards and protect the public from problem gambling risks. As a result, MGCB has requested the immediate removal of all references to its membership and will cease participation in NCPG events and committees.