The Michigan Gaming Control Board has formally withdrawn its membership from the National Council on Problem Gambling, citing strong opposition to Kalshi’s recent induction.
Kalshi, a prediction markets platform, joined the problem gambling organisation as a platinum-level member in May, committing a two-year $2 million investment.
MGCB executive director Henry Williams expressed his disapproval in a formal letter dated 1 July, directed at the national council’s leadership.
Williams argued that Kalshi’s membership directly undermines state enforcement actions already underway against the prediction markets platform across the country.
“I am deeply concerned that Kalshi’s attempts to distinguish sporting event contracts from other forms of sports betting by claiming that its offerings are akin to ‘investment’ or ‘insurance’ products directly undermines a foundational message of responsible gaming: that gambling in any form is for entertainment purposes only,” Williams wrote.
The MGCB also raised concerns that the council’s association with Kalshi creates significant public confusion about licensing requirements and consumer protections.
Williams argued that Kalshi does not face the same regulatory conditions as licensed sports betting operators, yet the partnership implies otherwise to the general public.
The National Council on Problem Gambling had already addressed criticism of its decision in June, stating it “does not advocate for or against the legality of specific products or platforms.”
The council further clarified that its primary purpose is to support “prevention, education, consumer protection, harm reduction, and access to care,” and has not publicly responded to Michigan’s exit.
The withdrawal comes amid an active legal dispute between Michigan and Kalshi, with the state securing a temporary restraining order against the platform on 29 June.
That court order prevents Kalshi from offering sports event contracts within Michigan’s borders, with regulators contending the company has been operating without the required state licence.
Michigan staff will immediately step down from all NCPG boards and committees, and the state has also cancelled its paid sponsorship for the council’s upcoming annual conference.
Kalshi, for its part, continues to maintain that regulatory authority over prediction markets belongs exclusively to the federal Commodity Futures Trading Commission, not individual states.
The council maintains a neutral stance on wagering product legality and has previously stated that corporate donations do not constitute policy endorsements of any kind.
Michigan officials concluded that continuing the national council relationship was incompatible with their responsibility to protect local residents from unlicensed gambling activity.
