The Michigan Gaming Management Board (MGCB) has opened an investigation into sports activities prediction markets working and not using a license within the state. These platforms, which permit customers to position monetary stakes on the result of sporting occasions, have raised pink flags over the shortage of client safeguards and regulatory oversight.
In an announcement made on April 11, the MGCB expressed that these companies—although usually offered as buying and selling platforms—fall underneath the class of sports activities betting underneath Michigan legislation. The regulator emphasised that bypassing the state’s regulatory framework exposes customers to appreciable dangers, together with fraud, information breaches, and misuse of private data.
Leisure or Funding? State Pushes Again on Gray Space
In response to the MGCB, the core challenge lies in how these unlicensed platforms “blur the road” between sports activities betting as a type of leisure and as a car for monetary hypothesis. The company warned that this recharacterization might mislead customers into treating playing as a professional funding alternative.
“Sports activities betting is supposed to be a type of leisure, not a monetary funding,” said MGCB government director Henry Williams. “By framing sports activities contracts as funding automobiles, these platforms danger complicated customers and undermining the state’s dedication to accountable gaming.”
Whereas the MGCB didn’t disclose the names of particular corporations underneath investigation, comparable enforcement actions have already been taken in states like Nevada, New Jersey, Ohio, Illinois, and Maryland. In these states, cease-and-desist orders have been issued to entities akin to Kalshi, Robinhood, and Crypto.com, all of which preserve that their choices are federally compliant and are contesting the orders in courtroom.
Regulatory Safeguards Missing in Unlicensed Operations
In contrast to Michigan’s accepted sportsbook operators—who should implement measures akin to age verification, KYC protocols, anti-money laundering safeguards, and self-exclusion instruments—these unlicensed platforms usually have few to no such protections in place. The MGCB warned that this opens the door to id theft, monetary exploitation, and entry by underage customers.
“Furthermore, many of those unlicensed platforms are sometimes accessible to people as younger as 18, in stark distinction to Michigan’s 21+ age requirement for authorized sports activities betting,” Williams added.
Whereas the lack of tax income is a priority, the MGCB famous that the first motivation for the investigation is the necessity to protect consumers. Williams reaffirmed that unlicensed operators compromise not solely participant security but additionally the integrity and viability of the state’s authorized betting market.
“We take client safety very critically and are dedicated to making sure that Michigan residents are partaking with secure and authorized sports activities betting choices,” he mentioned.
Broader Enforcement Efforts Proceed
This investigation is a part of a broader crackdown on illegal gambling activities in Michigan. Earlier in April, the MGCB despatched cease-and-desist notices to 13 offshore playing websites, together with Fortunate Tiger On line casino and Wealthy Palms On line casino. These websites, managed by Curaçao-based Alistair Options NV, have been discovered providing slot machines, desk video games, and video poker to Michigan residents with out correct licensing.
Others cited within the enforcement motion embody Shazam On line casino, Freeway On line casino, SlotsRoom, Ruby Slots On line casino, Las Atlantis On line casino, Wager Large Greenback On line casino, Blood Moon On line casino, Spinfinity, Jumba Wager On line casino, Grand Eagle On-line On line casino, and DogsFortune.
Because the probe into prediction markets advances, the MGCB confirmed it could “proceed to analyze and take all obligatory steps as deemed applicable” to uphold the authorized playing setting within the state.
Supply:
MGCB Cracks Down on Unlicensed Sports Prediction Platforms, World On line casino Listing, April 14, 2025
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