The Michigan Gaming Control Board (MGCB) has opened a series of investigations into unlicensed sports prediction markets operating within the state. These unlicensed wagering platforms impact consumer protection and “may jeopardize the integrity of Michigan’s legal sports betting system,” according to the MGCB.
“We take consumer protection very seriously and are committed to ensuring that Michigan residents are engaging with safe and legal sports betting options,” said Henry Williams, Executive Director of the MGCB.
“Unlicensed entities not only pose a risk to consumers but also undercut the integrity and revenue-generating potential of the state’s regulated sports betting industry. We are actively investigating these practices and will pursue appropriate measures to protect Michigan bettors.”
Sports prediction markets allow users to trade their predictions on the outcomes of sports events via contracts. These exchange-traded markets are available on platforms like ForecastEx2, Kalshi, Polymarket, and PredictIt.
However, unregulated platforms bypass regulatory protections of Michigan’s legal sports betting market, which can confuse bettors and “blur the line between sports betting as entertainment and sports betting as a financial trading vehicle,” says the MGCB.
Michigan Gaming Control Board Says Sports Betting Should Never Be Viewed As Investment Vehicle
In addition, the MGCB takes issue with platforms promoting sports betting as “an investment opportunity,” which goes against the state’s established responsible gaming principles.
“Sports betting is meant to be a form of entertainment, not a financial investment,” Williams added. “By framing sports contracts as investment vehicles, these platforms risk confusing consumers and undermining the state’s commitment to responsible gaming.
“Moreover, many of these unlicensed platforms are often accessible to individuals as young as 18, in stark contrast to Michigan’s 21+ age requirement for legal sports betting.”
Offshore platforms also expose Michigan residents to fraud and identity theft.
Unlicensed operators oftentimes fail to adhere to regulations including “age verification, Know Your Customer (KYC) protocols, anti-money laundering (AML) measures, self-exclusion policies, and integrity monitoring.”
That ultimately puts consumers at risk of potential financial harm.
Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.
