Michigan Gaming Control Board Probes Prediction Markets
The Michigan Gaming Control Board (MGCB) has its sights on prediction markets, launching an open investigation into unlicensed operators offering sports-related contracts in the state.
Investigation Underway
A board spokesperson told Sports Betting Dime and LSR that no cease-and-desist letters have gone out yet, but the probe’s live with a clear aim: shield Michigan residents from risks tied to unregulated platforms.
Details are slim, no timeline or next steps spilled, but the MGCB’s keeping a tight watch on the online gaming scene to enforce top-tier consumer protection, fairness, and safety.
Unlike Illinois, New Jersey, Ohio, and Nevada, which already hit prediction outfits like Kalshi with cease-and-desist orders, Michigan’s playing it cautious.
The MGCB hasn’t named targets or rushed to action, possibly dodging the legal slugfests Kalshi’s waging against regulators in New Jersey and Nevada.
What’s Bugging the MGCB
The board’s got a laundry list of worries. Topping it: protecting people from shady operators running without licenses. The MGCB wants to know if these platforms safeguard users or leave them exposed.
There’s also the big question: are prediction markets just dressed-up sports betting? If so, they’d fall under the Lawful Internet Gaming Act, requiring state approval only licensed operators.
Beyond that, the probe’s checking how these markets hit Michigan’s 10 million residents, especially if they fuel problem gambling spikes: particularly with ties to crypto-trading platforms blurring lines.
The Commodity Futures Trading Commission (CFTC) oversees derivatives nationwide, and Kalshi’s leaning on that to argue states can’t touch it.
Michigan’s MGCB isn’t buying in yet, eyeing whether it’s got the juice to clamp down or if federal rules rule the day.
Crackdown Context
This fits a busy week for the MGCB. On Tuesday, it pinged Lucky Tiger Casino and Rich Palms Casino, both run by Curaçao-based Alistair Solutions NV, with cease-and-desist letters for unlicensed slots, table games, and video poker. Wednesday upped the ante: 11 more notices went to brands like Shazam Casino, SlotsRoom, Ruby Slots, Spinfinity, Jumba Bet, and Grand Eagle Online Casino.
That’s 13 total smackdowns in a week, all pegged for breaking the Lawful Internet Gaming Act, Michigan Gaming Control and Revenue Act, and Michigan Penal Code. The message is pretty clear: play by the rules or get out.
Those moves show muscle, but prediction markets are a trickier beast. The MGCB’s holding off on letters here, maybe learning from states facing Kalshi’s courtroom pushback.
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