Responsible Gambling Caught in Crossfire Between NCPG & MGCB

The effort to fight problem gambling hit a major roadblock earlier this week.

The Michigan Gaming Control Board announced it was leaving the National Council on Problem Gambling. The move was in response to the national group's acceptance of Kalshi, the prediction market leader, as a new member. 

While the state regulator’s goal was to show its opposition to the emerging prediction industry, it also may have dealt a blow to responsible gambling efforts across the US.

MGCB Delivers Blow to NCPG’s Fight

It's no secret that the MGCB opposes sports prediction markets, but it went too far with its recent move.

By exiting the NCPG, the regulator is sending a message that it won’t work with operators like Kalshi, even when public health is at stake. While its concerns over the controversial industry’s impact on problem gambling are legitimate, the MGCB just publicly rejected an attempt to fix them.

That regulator’s decision is a blow to the NCPG’s national efforts, and could deter other prediction operators from joining in the future. This could make the crisis even worse for prediction market users, making them the ultimate victims of this petty fight.

MGCB Believes Kalshi is Dangerous

While the MGCB’s move will rightfully draw criticism, it's clear the regulator believes Kalshi is a direct threat to residents. We’ve seen that made clear in the state’s lawsuits against the prediction industry, including one ongoing legal fight against Kalshi. 

In a press release, MGCB Executive Director Henry Williams shared exactly how the regulator views Kalshi. 

Kalshi is targeting Michigan's most vulnerable residents with sports betting dressed up as investing — and without intervention, the harm will keep getting worse. Our licensed sportsbooks follow strict rules designed to protect consumers — verifying that bettors are at least 21 years old, offering responsible-gaming tools, and protecting patron funds. Kalshi has refused to play by the same rules, and our agency will continue to use every regulatory and legal tool available to make sure Michigan families, our schools, and our first responders are protected from this unchecked exploitation.

Another Loss for NCPG

Late last year, the NCPG was forced to cease operating the well-known 1-800-GAMBLER hotline. The Council on Compulsive Gambling of New Jersey owns the rights to the number, and decided against renewing the national group’s lease to use it. A court sided with the New Jersey group, which now operates the hotline nationally.

The NCPG hoped that adding Kalshi would help expand its resources to help more struggling bettors. However, Michigan’s exit means that won’t be the case.

Instead, the group will have to reestablish its importance to prevent other states from following Michigan’s lead.