Michigan Regulator Warns Operators on Prediction Markets

Michigan has drawn a firm line against licensed operators exploring prediction markets and sports event contract trading, cautioning that such activity could directly impact their ability to do business in the state.

Good to Know

• MGCB says any involvement in prediction markets violates state gaming law.
• Licensing consequences apply even if activity occurs outside Michigan.
• Arizona issued a similar warning in September, adding national context.

In a formal memorandum, Michigan Gaming Control Board (MGCB) Executive Director Henry Williams addressed all licensed operators. He noted that the board is aware some licensees may be considering opportunities to run or support prediction markets where participants trade contracts tied to future outcomes.

“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 wrote.

Williams stressed that any connection—whether through affiliates, key persons, or related businesses—would put a license at risk. He emphasized that such practices “would not operate in accordance with state gaming laws,” and disciplinary measures would apply even if the trading occurred outside Michigan.

The message is clear: operators hoping to remain licensed in Michigan must steer clear of prediction market ventures.

Arizona Also Adding Pressure

The Michigan warning comes just after Arizona regulators echoed a similar stance. On September 17, Arizona Department of Gaming (ADG) Director Jackie Johnson told operators that links to event contract trading companies could weigh against licensing decisions.

“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,” Johnson wrote.

Arizona law does not explicitly define the legality of sports event contracts. However, in May 2025, the ADG issued cease-and-desist letters to Kalshi, Robinhood, and Crypto.com for offering betting activity without licenses.