The Michigan Gaming Control Board (MGCB) has withdrawn its membership from the National Council on Problem Gambling (NCPG) following the organization’s newly announced partnership with prediction market operator Kalshi.
The decision was revealed by MGCB Executive Director Henry Williams in a letter addressed to NCPG Executive Director Keith Whyte Maurer, arguing that the partnership conflicts with the regulator’s efforts to enforce state gambling laws.
In the letter, Williams criticized Kalshi’s continued legal battles with state regulators and alleged that the company has sought to operate sports event contracts in jurisdictions where regulators consider the activity to be unlicensed sports betting.
He also argued that Kalshi’s positioning of its products as financial investment or insurance instruments undermines responsible gambling messaging.
“The notion that internet sports betting can and should be pursued as a viable means of financial gain or protection against financial loss undermines this position and increases the risk of irresponsible and problem gambling behavior,” Williams wrote.
The MGCB said the partnership also risks weakening the position of state regulators by aligning a responsible gambling organization with a company currently challenging gaming authorities in multiple states.
The dispute follows Kalshi’s announcement of a two-year, $2m investment in the NCPG to establish a new initiative focused on trader health and safety. As part of the agreement, Kalshi also became the first member of the organization’s newly created Financial Services & Trading membership category.
Recently, the Supreme Court of Nevada denied Kalshi’s emergency request to delay the implementation of geolocation requirements while litigation continues.
The National Council on Problem Gambling has defended its new Financial Services & Trading membership category, saying it was created to address consumer protection risks associated with products that may function similarly to gambling
