Michigan Cracks Down on Unlicensed Sports Prediction Markets

A Push to Protect Bettors

“We take consumer protection very seriously,” said MGCB Executive Director Henry Williams, vowing to keep residents wagering on safe, legit options. The state’s digging in to shield bettors and its $2.9 billion sports betting market.

The MGCB’s not alone, other states are sniffing out similar setups, and Michigan’s joining the pack to check these rogue players. These platforms pitch themselves as slick financial tools, letting users trade predictions on game outcomes like stocks. But by skipping the state’s rules, they’re stirring up confusion, blurring the line between fun bets and high-stakes investing.

“Unlicensed entities pose a risk to consumers and undercut the integrity of our industry,” Williams added, signaling a tough road ahead for these operators.

What’s at Stake

Due to MGCB, prediction markets are gambling with trust. Licensed sportsbooks in Michigan jump through hoops: age checks (21+ only), Know Your Customer (KYC) protocols, anti-money laundering measures, self-exclusion options, and integrity monitoring.

Unlicensed platforms might skip it all, leaving bettors open to fraud, identity theft, or weak data security. “Consumers can be left vulnerable,” the MGCB warned, and that’s a problem when the state’s legal market handled $2.4 billion in 2024 alone.

It’s not just about cash, though lost tax revenue stings, with Michigan pulling $23 million from sports betting last year. These platforms muddy the waters, framing bets as investments, which clashes with the state’s responsible gaming vibe.

“Sports betting is meant to be entertainment, not a financial vehicle,” Williams said. Worse, some let 18-year-olds play, ducking Michigan’s 21+ rule. That’s a red flag for a state dead-set on keeping gaming safe and above board.