MGCB Executive Director warns licensees of prediction markets operations
Executive Director Henry Williams stated any operators found to have involvement in the offering of sporting event contracts will face ‘implications relative to your licensure in Michigan.’
Key Points
- Williams also stated any business involving prediction markets “would not operate in accordance with state gaming laws,” such as that offered by Kalshi or Crypto.com
- On September 17, the ADG issued a warning to all operators currently conducting business in Arizona of partnering with any entity which may offer event contract trading
Michigan Gaming Control Board (MGCB) Executive Director Henry Williams issued an official memorandum to all operators currently licensed to conduct business in the state of becoming involved with prediction markets operations and the trading of sporting event contracts.
“The…(MGCB) understands that certain licensees may be considering opportunities to operate, offer or facilitate access to prediction markets, where individuals can buy, sell and trade event contracts that are based on a future event, occurrence or value,” Williams said.
“The MGCB writes to make you aware that any involvement in the offering of sporting event contracts, directly or via an affiliate, key person, related business entity or other association, will have implications relative to your licensure in Michigan.”
Operators which have already pursued entering the prediction markets business include Underdog Fantasy and FanDuel, which formed a new partnership with CME Group on August 20 to begin the development of “fully funded, event-based contracts with defined risk.”
Underdog Fantasy entered the space after facilitating a partnership with Crypto.com, a cryptocurrency exchange company which offers contracts based on the outcomes of specific events.
Williams also stated any business involving prediction markets “would not operate in accordance with state gaming laws,” and even out-of-state trading of sporting event contracts would still garner discipline from the regulator.
Good to know: Sleeper Markets LLC, the prediction market business of fantasy sports platform Sleeper, issued a letter to the OIG to accuse the CFTC of violating federal law by denying its application filed with the NFA
On September 17, the Arizona Department of Gaming (ADG) issued a warning to all operators currently conducting business in the state of partnering with any entity which may offer event contract trading.
“If the Department believes that an entity related to a licensee is partnered with a company that is selling event contracts in a jurisdiction outside Arizona in violation of the laws of that jurisdiction, that might impact a licensing decision,” ADG Director Jackie Johnson said as part of a letter sent to operators.
Currently, Arizona sports betting laws fail to indicate the legality of sports even contract trading, nor has there been previous litigation regarding the gaming type. The Arizona regulator previously sent cease-and-desist letters to Kalshi, Robinhood and Crypto.com in May 2025 for offering sports betting without an issued license.
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