Kalshi’s growing prediction markets led to Michigan withdrawing itself from the National Council on Problem Gambling (NCPG).
Key Takeaways
- Michigan had to sue to get Kalshi to temporarily shut down its prediction markets inside state lines.
- Kalshi and other prediction platforms maintain that they are not gambling operators.
- Williams said Kalshi was operating an illegal gambling platform in his state.
Michigan - which secured a temporary restraining order against Kalshi on June 29 - announced Wednesday its decision to back out of the NCPG. The council is a nonprofit organization focused on reducing and preventing instances of gambling harm, often caused by gambling addictions.
Michigan Gaming Control Board (MGCB) executive director Henry Williams notified the NCPG of his “strong disapproval” of Kalshi’s membership and investment partnership with the Council. In a letter addressed to NCPG executive director Heather Maurer, Williams accused Kalshi of operating an illegal sports betting operation.
“Kalshi was (and may still be) actively involved in offering unlicensed sports gambling in Michigan,” Williams wrote. “Kalshi is also currently still offering unlicensed sports gambling in numerous other states. Kalshi is involved in countless lawsuits against numerous states across the country.
Michigan’s leading gaming enforcement regulator also accused the NCPG of undermining its own objectives by teaming up with Kalshi.
“These efforts are part of Kalshi’s broader strategy to remake the gambling industry - by bulldozing countless regulations and the consumer-protection safeguards which Michigan and other states have enacted to protect their residents and uphold the integrity of sports betting,” he said. “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.”
Enjoying Covers content? Add us as a preferred source on your Google account
Is Kalshi gambling or not?
Despite what the NCPG’s title might suggest, Kalshi and other prediction operators maintain they are not gambling platforms. They refer to their platforms as a tool used for financial investment in a peer-to-peer format that contrasts with sportsbooks’ house-versus-player model.
That argument has largely fallen on deaf ears with state regulators, who believe that distinction is merely an unintended gray area.
Sports event contracts have drawn the most ire, both because of their popularity and because they offer similar, if not identical, markets to legal sportsbooks. That includes the Michigan sports betting market.
“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 notion that internet sports betting can and should be pursued as a viable means of financial gain or protection against financial loss undermines this position and increases the risk of irresponsible and problem gambling behavior.”
Prediction platforms are licensed at the federal level by the Commodity Futures Trading Commission (CFTC). They have been allowed to expand across the country largely because of the CFTC’s backing and the Supremacy Clause in the U.S. Constitution, which states federal authority supersedes state law.
Williams highlighted that partnering with Kalshi may create the impression its prediction markets were subjected to the same regulations as state-licensed sportsbooks.
“NCPG’s partnership with Kalshi also creates substantial confusion by suggesting to the public that Kalshi is subject to the same consumer protections, licensing requirements, and regulatory oversight as licensed sports betting operators,” he wrote. “It is not. Any affiliation which blurs this distinction undermines the MGCB’s statutory responsibilities and jeopardizes the clarity of the regulatory framework which it enforces.”
Removing all affiliations
Withdrawing from the NCPG means Michigan will not uphold its end of a paid sponsorship at a conference scheduled for the end of the month. Williams also said he would be back in touch to ensure all future references to the MGCB’s 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,” he wrote.
Kalshi’s already extraordinary growth shifted into another gear during the 2026 World Cup. The platform reported $17.4 billion in total trading volume at the end of the second week of the tournament and processed more than $10 billion during the second week alone. That translates to more than $1.4 billion daily.
