Michigan Regulator Confirms Exit From NCPG Over Kalshi

Any hope that problem gambling could unite the prediction and sports betting industries grew a bit dimmer last week.

The Michigan Gaming Control Board has confirmed its exit from the National Council on Problem Gambling. In a letter sent to the NCPG by the regulator’s Executive Director, Henry Williams, cited Kalshi’s new membership as the reason for its exit. 

“I am writing to express my strong disapproval of Kalshi’s recently announced membership and investment partnership with the National Council on Problem Gambling (NCPG),” the letter reads. “Further, by partnering with a company that numerous states, including Michigan, are actively litigating against for disregarding state gaming laws, NCPG directly undermines state enforcement actions and risks weakening the positions of state regulatory bodies nationwide.”

In May, Kalshi announced it was joining the NCPG as its first prediction market member. The move was made to ease growing concerns over the industry’s impact on problem gambling. The operator also donated $2 million to the group’s fight against the growing crisis.

While responsible gambling advocates celebrated the move, it seems lawmakers in Michigan took the addition personally.

NCPG Caught in Tricky Spot

The letter from the MGCB doesn’t leave much room to question why the regulator exited the group. Given its ongoing legal fight against Kalshi partly revolves around problem gambling, it's clear the state views the NCPG’s decision almost as a direct attack.

While other states could follow Michigan’s lead, it's hard to criticize the NCPG’s decision to embrace sports prediction market operators. 

Over the last year, the prediction industry has largely resisted calls to increase responsible gambling tools and resources. Kalshi’s decision to reach out to the NCPG was a significant first step towards changing that approach. By adding the operator as a member, the group hopes it will inspire its rivals to do the same.

There is little question that the NCPG ignored state concerns when adding Kalshi, but it seems the group believed the move would bolster its fight against problem gambling.