Michigan Gaming Control Board Withdraws From NCPG Over Kalshi Partnership

The regulator said the National Council on Problem Gambling's partnership with Kalshi conflicts with its mission to protect consumers and support responsible gaming.

Michigan Gaming Control Board Withdraws From NCPG Over Kalshi Partnership
Photo by Junseong Lee on Unsplash

The Michigan Gaming Control Board (MGCB) has withdrawn its membership from the National Council on Problem Gambling (NCPG). The regulator cited the organization’s partnership with Kalshi as a conflict with MGCB’s mission to protect consumers and promote responsible gaming.

In a July 1 letter addressed to NCPG Executive Director Heather Maurer, MGCB Executive Director Henry Williams said the regulator could no longer remain affiliated with the organization after it announced a membership and investment partnership with Kalshi in May.

The decision comes just days after a Michigan judge granted the state’s request for a temporary restraining order requiring Kalshi to stop offering sports-event contracts in Michigan. The litigation is part of a broader nationwide legal battle over whether federally regulated prediction markets fall under state gambling laws.

MGCB Says Kalshi Partnership Undermines Responsible Gambling

Williams wrote that Kalshi is “actively involved in offering unlicensed sports gambling in Michigan.” He added that the company is engaged in litigation with numerous states as part of what he described as a broader effort to “remake the gambling industry” by “bulldozing countless regulations and the consumer-protection safeguards” enacted by state regulators.

Williams also argued that Kalshi’s attempts to characterize sports-event contracts as investment or insurance products conflict with a core responsible gambling message.

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 further warned that the NCPG’s partnership with Kalshi could mislead consumers about the company’s regulatory status.

NCPG’s partnership with Kalshi also creates substantial confusion by suggesting to the public that Kalshi is subject to the same consumer protections, licensing requirements, and regulatory oversight as licensed sports betting operators. It is not.”

He concluded that remaining a member of the organization was no longer compatible with the regulator’s mission.

After considering this matter, I have concluded that continuing our membership in NCPG is inconsistent with the MGCB’s mission, statutory responsibilities, and its commitment to responsible gaming and to protecting the public from the risks of problem gambling in Michigan.”

Michigan Ends NCPG Participation

The MGCB requested that the NCPG immediately remove all references to the regulator’s membership and affiliation.

Williams also said MGCB employees would no longer serve on NCPG boards or committees, attend NCPG events, or participate in the organization’s annual conference. The regulator is also canceling its paid sponsorship of the conference scheduled for later this month.

Williams closed the letter by stating:

I regret that this action is necessary, but trust you understand the MGCB’s need to ensure that it is not associated with organizations that are affiliated with companies engaged in illegal gambling.”

Michigan Ends NCPG Ties Amid Responsible Gambling Funding Debate

The MGCB’s withdrawal also comes as Michigan continues facing criticism over its funding for problem gambling programs.

Michigan allocated approximately $10 million to problem gambling services in 2025 despite collecting roughly $1.78 billion in gaming and lottery-related tax revenue the previous fiscal year.

The Center for Addiction Science, Policy, and Research (CASPR) has argued Michigan should strengthen its responsible gambling framework. CASPR gave the state an F- in its 2026 Gambling Policy Report Card. It cited shortcomings in funding for responsible gambling and in consumer protection measures.

The organization also described Michigan’s online gambling tax as “unusually low”. It recommended banning credit cards for gambling while requiring a mandatory cooling-off period for players who lose more than $500 within a 30-day period.

The withdrawal, therefore, ends Michigan’s affiliation with one of the nation’s leading responsible gambling organizations at a time when the state’s own approach to problem gambling funding continues to face scrutiny.

Kalshi Partnership Has Drawn Industry Criticism

The move follows NCPG’s announcement that Kalshi had joined the organization under its new Financial Services & Trading membership category as part of a $2 million strategic partnership.

The partnership immediately drew criticism from the regulated gaming industry. Opponents argued it risked legitimizing a company that remains embroiled in legal disputes with gaming regulators across multiple states. At the same time, they say, it raises questions about how prediction markets fit within existing responsible gambling standards.

The partnership is not the first time prediction markets have intersected with the NCPG. Earlier this year, the organization released a resolution encouraging prediction market operators to promote 1-800-MY-RESET, the National Problem Gambling Helpline.

Whether Michigan’s decision prompts other state regulators to reconsider their relationships with the NCPG remains to be seen. However, Michigan’s withdrawal marks the first significant organizational fallout from the partnership.

Topics
PartnershipsPrediction MarketsResponsible Gambling
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Chavdar Vasilev
Global Wire Editor

Chavdar Vasilev is the Global Wire Editor at Gambling Insider, overseeing first-day coverage of breaking developments across the global gambling industry. His work focuses on regulation, enforcement actions, earnings, market activity, and emerging sectors, including prediction markets and sweepstakes casinos.

Previously, Vasilev reported for publications including CasinoBeats and Bonus.com, covering industry-shaping stories across the U.S. and beyond, from legislative debates and market expansion to financial performance and operator strategy.

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