The Michigan Gaming Control Board (MGCB) has ended its membership with the National Council on Problem Gambling (NCPG), citing concerns over the organization’s new partnership with prediction market operator Kalshi.
MGCB Executive Director Henry Williams announced the decision in a letter to NCPG Executive Director Heather Maurer, arguing that the regulator could no longer support an organization affiliated with a company it believes is offering unauthorized sports wagering products in Michigan.
The dispute follows NCPG’s decision to accept Kalshi as its first member under a newly created Financial Services & Trading category. The partnership includes a $2 million commitment from Kalshi aimed at supporting education, awareness, and resources focused on responsible trading and consumer protection.
However, Michigan regulators argue the relationship creates a conflict with responsible gambling principles. Williams said Kalshi’s position that sports event contracts should be viewed as financial products rather than gambling risks confusing consumers about the nature of the activity.
According to the MGCB, gambling should be promoted only as entertainment, not as a potential investment strategy or protection against financial losses. The regulator also warned that Kalshi’s association with NCPG could give the public the impression that the platform operates under the same licensing requirements and consumer safeguards as regulated sportsbooks.
The decision comes amid an ongoing legal battle between Kalshi and state gaming authorities. Michigan recently secured a temporary restraining order preventing the company from offering sports event contracts in the state, while similar debates continue elsewhere in the US over whether prediction markets fall under federal financial regulation or state gambling laws.
As part of its withdrawal, MGCB has asked NCPG to remove all references to the regulator’s membership. The agency’s representatives will also stop participating in NCPG boards, committees, events, and its annual conference.
Kalshi maintains that it operates as a federally regulated exchange rather than a gambling operator. The company has said its partnership with NCPG is intended to improve safeguards for users, including education, responsible trading tools, and access to support resources.
The split highlights the growing tension between traditional gambling regulators and the expanding prediction market sector, where the line between financial trading and betting remains heavily contested.