Michigan regulator to investigate unlicensed prediction markets
The Michigan Gaming Control Board has revealed that it will be starting an investigation into unlicensed sports prediction markets found to be operating in the state unlawfully.
The regulator said the platforms to be investigated have bypassed Michigan laws and raised concerns over consumer protections, explaining that they may even pose a risk to the integrity of Michigan’s sports betting system.
“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 Michigan Gaming Control Board.
“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.”
Prediction markets are exchange-traded markets that allow users to buy or sell shares based on the outcome of a future event. The Michigan Gaming Control Board argues that to do this, prediction platforms are ignoring Michigan’s regulatory rules and can cause confusion among bettors.
“Beyond concerns over lost tax revenue, these unregulated platforms may expose Michigan residents to various risks, including fraud, identity theft, and inadequate data security. Unlike licensed sportsbooks, which are required to adhere to strict regulations including age verification, Know Your Customer (KYC) protocols, anti-money laundering (AML) measures, self-exclusion policies, and integrity monitoring, unlicensed entities may operate without these safeguards. As a result, consumers can be left vulnerable to financial harm,” the regulator said in a statement.
Williams added, “Sports betting is meant to be a form of entertainment, not a financial investment. 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.”
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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