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MGCB Chairman: A ‘real reckoning’ over prediction markets is near…

Michigan Governor Gretchen Whitmer appointed Jim Townsend as new MGCB Chairman on July 23, succeeding Jim Ananich who had been leading the regulator since April 2025.

6 min read
MGCB Chairman Analysis
Key Points
Townsend noted the ‘explosive growth’ of prediction markets as one of the primary threats to Michigan gaming
The new MGCB Chairman serves alongside four Board members, as well as Executive Director Henry Williams
Townsend wishes to ‘build on the foundation’ Ananich left behind, rather than ‘reinvent’ the former Chairman’s strategy

Having started your tenure as new MGCB Chairman on August 1, what are your main priorities to help continue the Board's mission of protecting Michigan gaming?

Under the law, the Michigan Gaming Control Board (MGCB)’s mission is to regulate the gaming industry to serve the interests of the people of Michigan. My top priority is continuity with accountability – the Michigan Gaming Control Board has built real credibility over the years, and my job is to protect that while making sure we’re keeping pace with a gaming industry that's changing faster than most regulatory frameworks were built for. Concretely, that means staying aggressive on illegal and unlicensed operators, making sure responsible gaming is built into how we regulate, and getting Michigan's regulatory posture right on emerging issues like prediction markets before they get ahead of us.

Could you speak on the legacy of former Chairman Jim Ananich and the impact he had while serving with the MGCB?

Jim Ananich left the Board in a strong position. He came in during a period of real growth for online gaming and sports betting in Michigan and helped steer the Board through it with a steady hand. I want to build on the foundation he and the staff put in place, not reinvent it.

In your mind, what are the most notable threats to Michigan gaming, whether that's prediction markets or perhaps illegal online gambling?

Two things stand out. First, the explosive growth of prediction markets operating between federal derivatives regulation and state gambling law – that's a live, unresolved issue right now.

States that get ahead of that, rather than reacting case by case, are going to be better positioned

Second, illegal offshore and unlicensed online gambling operators continue to target Michigan residents outside any consumer protection framework. Both point to the same underlying challenge: technology and new business models are moving faster than the regulatory lines are drawn. 

Following the CFTC's response to Kalshi's temporary restraining order in Michigan, what are the next steps to properly regulating prediction markets across the state?

The Board is currently involved in litigation regarding this matter. As such, we will let the courts decide.

Are there ways in which your previous career experience can assist in serving as MGCB Chairman? Such as your background in politics or even while working with Ford?

My time at Ford, running national marketing and sales for a multi-billion dollar business line, taught me how to think about consumer behavior, competitive markets and brand risk at scale – all things that matter when you're regulating an industry built around consumer engagement. My time in the Michigan House gave me the legislative and political grounding, and directing the Levin Center has been about oversight and accountability full-time. Between the business side, the legislative side and the oversight side, I've essentially spent my career preparing for exactly this kind of role – where you need to understand the industry commercially, understand it politically and hold it accountable.

Promoting responsible gambling has also been a key initiative of the MGCB. What does safe play mean to you and how can the Board continue to protect those who gamble?

Safe play means people can enjoy gaming as entertainment without it costing them their financial stability or their relationships. That's not an abstract goal for this Board – it's why the MGCB has built out programs like Don't Regret the Bet and expanded it into Don't Bet on Your Future, specifically to reach young people before they're ever legally exposed to real-money gambling.

It's why we partnered with Gamban to offer free gambling-blocking software licenses to Michigan residents who want that extra layer of protection. It's why we're funding high school booster clubs to help carry a responsible-gaming message directly into their communities. And it's why we're launching the Gambling Awareness Education Program – GAP – soon, so schools finally have structured resources to address gambling prevention, which right now there's no statewide mandate for.

I want to build on the foundation he and the staff put in place, not reinvent it

But none of this can be a check-the-box requirement for licensees. The Board has to actually measure whether these tools are reaching people and changing behavior – not just that they exist on paper.

When did you first establish an interest in gaming and how did that eventually lead to being appointed as Chairman of the MGCB?

My interest in gaming policy stems from the work I have done – from my early days as a congressional staffer and later in industry and law – but most directly it grows out of my time in the Legislature. A lot of my work there touched on economic development, taxation and licensing – the same regulatory levers that sit at the core of how gaming actually gets governed in Michigan.

Gaming revenue is a real driver for the state and for local communities, but it only works if the licensing and oversight structure behind it is solid, and that's exactly the kind of policy area I spent years working in. So, when the opportunity to chair the MGCB came up, it wasn't a departure for me – it was a continuation of work I'd already been doing, just applied to one specific, high-stakes industry.

Not just in Michigan but across the US, how do you see gaming evolving over the next 3-5 years? A greater online presence, integrating prediction markets, etc.?

I think you'll see continued growth in online and mobile gaming, a real reckoning over prediction markets and whether they get treated as gambling or as financial products, and more pressure on states to modernize regulatory frameworks that were built for casino floors, not apps. States that get ahead of that, rather than reacting case by case, are going to be better positioned.

How do you intend to collaborate with fellow state regulators, as well as balance the MGCB's responsibility with ensuring Michigan is up to date with gaming innovation?

Regulators talk to each other more than people think – through organizations like the National Council of Legislators from Gaming States (NCLGS) and informally with other state gaming boards, especially on shared problems like prediction markets and illegal operators. As a lawmaker, I often tried to learn from how other states were addressing difficult issues, and I will bring that curiosity and openness to my role as chair of the MGCB. If, for example, a state has been successful in reaching young people to help them understand gaming’s risks and develop a healthy relationship with this form of entertainment, I want the MGCB to take note and explore whether that is something worth adopting here.

My view is that innovation and oversight can work together, not against each other, when done correctly. The goal isn't to slow down new products – it's to make sure they follow the same rules as everything else in this industry: proper licensing, taxation and consumer protection.

Good to know

The MGCB reported the total casino activity from Detroit’s three commercial gaming establishments for July on August 11, as the operators combined to increase revenue 5.2% to $112.6m

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