The Michigan Gaming Control Board left the National Council on Problem Gambling over the decision to partner with Kalshi.
In a letter addressed to NCPG Executive Director Heather Maurer, the regulator noted Michigan’s temporary restraining order against Kalshi that prevents its operations in the state through July 13. The letter to Maurer was addressed Wednesday but the MGCB announced the news Thursday afternoon.
By working with Kalshi, which is suing and being sued by multiple states over the right to offer sports contracts on prediction markets, the NCPG “directly undermines state enforcement actions and risks weakening the positions of state regulatory bodies nationwide,” MGCB Executive Director Henry Williams said.
The NCPG announced Kalshi as a member in May under a new Financial Trading & Services category. Kalshi also donated $2 million to fund the Financial Trader Health and Safety Initiative, which the NCPG said would “expand education and awareness of responsible trading across these markets through the development of practical, evidence-informed, and data-driven resources designed to keep pace with rapidly evolving platforms.”
NCPG has been on the offensive
Ever since the Kalshi membership was announced May 18, the NCPG has issued multiple press releases related to the partnership as well as the results of a survey on consumer protection at prediction markets.
The most recent release from Monday, “Membership and Donations Do Not Equal Endorsement,” said membership, sponsorships and donations to the NCPG from any organization do not serve as endorsements from the NCPG:
The answer is no (emphasis in original).
As a nonprofit organization, NCPG maintains a clear separation between funding and influence. Contributions, sponsorships, membership dues, grants, and donations support our mission and programs, but they do not provide donors or members with authority over NCPG’s governance, policy positions, educational content, research priorities, advocacy efforts, strategic direction, or organizational decisions.
NCPG’s educational programs, conference content, policy positions, research initiatives, and advocacy efforts are developed through established organizational processes and guided by our mission, available evidence, subject matter expertise, strategic plan, and the needs of those affected by gambling-related harm.
Maurer did not respond to Legal Sports Report‘s request for comment before publication.
MGCB: gambling is only recreational
Williams worked through multiple reasons why the regulator felt it needed to withdraw its membership.
He noted deep concern over Kalshi attempting to differentiate sports contracts from sports betting. Saying those contracts are like investments “undermines a foundational message of responsible gaming: that gambling in any form is for entertainment purposes only,” he said (emphasis in original).
The partnership between Kalshi and the NCPG also creates public confusion, Williams continued, suggesting Kalshi is being held to the same standards of consumer protections that other state-regulated gaming operators must maintain.
“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.”
MGCB pulls out of sponsorships
The regulator will not be at any NCPG events nor will it be sponsoring its conference at the end of the month, Williams said.
“Accordingly, MGCB is formally withdrawing its membership from NCPG. Please remove all references to the MGCB’s membership or affiliation with NCPG immediately. Additionally, MGCB employees will no longer serve on any board or committee of NCPG and will no longer attend any NCPG events, including the annual conference.
“Finally, please note the MGCB is cancelling its paid sponsorship for the conference scheduled at the end of July. We will follow up separately to address any steps necessary to ensure all references to MGCB sponsorship are removed.
“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.”
