As states begin to examine and take action against sports event trading platforms, Michigan sports betting regulators could add this to their growing list of actions.
The Michigan Gaming Control Board confirmed with LSR Friday that it has opened investigations into the sports prediction markets offered by unlicensed Michigan sports betting entities. A spokesperson said the agency has issued no cease-and-desist letters.
“The Michigan Gaming Control Board currently has investigations open regarding sports prediction markets offered in Michigan by unlicensed entities,” the MGCB spokesperson said. “These investigations aim to address concerns about consumer protection and ensure that residents of Michigan are safeguarded against potential risks posed by unregulated operators. The MGCB has not issued cease-and-desist letters to such entities at this time.”
Active Michigan Sports Betting Regulators
The MGCB had a busy week, as it issued 13 cease-and-desist letters to unlicensed online casino and sportsbook operators. That included two on Tuesday and 11 on Thursday.
The agency said it “continues to monitor the online gaming landscape to ensure that all operators within the state comply with the highest standards of consumer protection, fairness and security.”
Michigan regulators have sent more than 30 cease-and-desist letters to offshore and illegal operators. This week’s letters went to:
- Bet Big Dollar
- Blood Moon Casino
- DogsFortune
- Grand Eagle Online Casino
- Highway Casino
- Jumba Bet Casino
- Las Atlantis Casino
- Lucky Tiger Casino
- Rich Palms Casino
- Ruby Slots Casino
- Shazam Casino
- Slotsroom
- Spinfinity
Following investigations of the unlicensed operators, the MGCB found them to be in violation of the Lawful Internet Gaming Act, Michigan Gaming Control and Revenue Act and the Michigan Penal Code.
Prediction Market Crackdown
It has been a newsworthy week for the sports prediction market.
In recent weeks, Nevada and New Jersey both sent the trading platform Kalshi cease-and-desist orders related to unlicensed sports betting offerings. Kalshi has in return filed lawsuits against Nevada and New Jersey.
The actions by longtime regulated gambling states have been followed by other states taking action. Ohio and Illinois have now sent cease-and-desist orders to Kalshi, Robinhood and Crypto.com.
Other states, including Connecticut, Kansas, Louisiana, Massachusetts and Washington, are reportedly looking into the prediction market uptick as well.
Federal Attention, Too
The Commodity Futures Trading Commission regulates the event trading markets nationally.
A CFTC round table on sports markets is slated for the near future.
Nevada Rep. Dina Titus, who regularly champions gambling issues at a federal level, has called on the CFTC to suspend sports event trading.
