Michigan Regulator Issues Warning on Prediction Markets to All Licensees
The Michigan Gaming Control Board (MGCB) has formally warned all state licensees that involvement in prediction markets, particularly those offering sporting event contracts, will negatively affect their license suitability. Executive Director Henry Williams sent the memorandum on October 3, 2025, to all commercial casinos, sports betting operators, iGaming operators, and fantasy contest operators.
The MGCB acknowledged that some licensees might consider operating or facilitating access to prediction markets. These markets allow individuals to trade contracts based on a future event or outcome. The regulator made clear that contracts on sporting events “would not operate in accordance with state gaming laws or pursuant to state-issued gaming licenses.” Any participation, whether direct or through an affiliate, “will have implications” for licensure in Michigan.
MGCB to Evaluate Continued Suitability
The MGCB holds a statutory duty to assess a licensee’s suitability, both at the time of application and on an ongoing basis. Licensees must demonstrate strong character, reputation, integrity, business probity, and financial ability.
To fulfill this duty, the MGCB will actively monitor licensees and their associates for any involvement in offering sporting event contracts, both in Michigan and in other jurisdictions.
The conduct that will be considered for suitability evaluation includes, but is not limited to:
- Direct or indirect operation of, or facilitating access to, sporting event contracts in Michigan without explicit MGCB approval and compliance with state law.
- Partnering or coordinating with an entity that offers such unauthorized contracts in Michigan.
- Operating or associating with an entity that offers sporting event contracts in any other jurisdiction where a regulatory body, law enforcement agency, or other government authority has expressly objected to or acted to prevent the offering of the contracts.
Requirement for Prompt Notification
The MGCB reminded all licensees of their ongoing duty to notify the agency of any material changes to their licensing information or any circumstance relevant to their suitability.
Consequently, the MGCB “expects any licensee that is actively pursuing any involvement in the offering of sporting event contracts will provide prompt notice to the MGCB.” This requirement ensures the regulator can immediately review the licensee’s qualifications.
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