Michigan regulator confirms sports prediction markets investigation

The Michigan Gaming Control Board (MGCB) has confirmed an investigation has been launched into unlicensed sports prediction markets operating in the state.

Within the news release, the board states that these platforms, which bypass Michigan’s regulatory framework, have “raised significant concerns about consumer protections.”

This marks the latest state to take similar actions to look at unlicensed operators, with the MGCB stating it will take all necessary steps as deemed appropriate within the investigation.

“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 MGCB.

“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.”

The regulator highlights how these platforms can “pose a serious risk to consumers” as they can cause potential confusion among bettors and blur the line “between sports betting as entertainment and sports betting as a financial trading vehicle.”

Our April episode of the Double Down Michigan podcast is launching soon! Hear from John Sullivan, Section Manager of the Enterprise Licensing Section, and Laura Chaparro, Manager of Enterprise Licensing, as they discuss the latest updates on gaming licenses, regulations, and the… pic.twitter.com/fSuytV7iWH

— Michigan Gaming Control Board (@MichiganGCB) April 9, 2025

A number of concerns have been raised, including lost tax revenue, risks of unregulated platforms, fraud, identity theft, and inadequate data security.

In Michigan, the sportsbooks that are licensed must adhere to strict regulations which include age verification, Know Your Customer (KYC) protocols, anti-money laundering (AML) measures, self-exclusion policies and integrity monitoring.

The board is also worried that promoting sports betting as an investment opportunity contradicts the regulator’s responsible gaming principles.

“Sports betting is meant to be a form of entertainment, not a financial investment,” Henry Williams added.

“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.”

Featured Image: Royalbroil on Wikimedia Commons

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