- The Michigan Gaming Control Board warned operators in the state about offering prediction markets.
- Sports betting licenses could be revoked in Michigan if operators are caught offering those markets.
DETROIT – Over the weekend, the Michigan Gaming Control Board sent a memo out to all sports betting operators in the state warning them about offering sports prediction markets.
In addition to the warning, the memo states that online gambling operators could see implications come up on their licenses and even see them get revoked if such markets are offered on their platforms. The intro to the memo where it states that betting licenses could be in danger can be read below:
“The Michigan Gaming Control Board (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. The MGCB further understands that many of these prediction markets would offer sporting event contracts – event contracts in which an individual acquires a position on the outcome of a sporting event or other occurrence related to a sporting event – and would not operate in accordance with state gaming laws or pursuant to state-issued gaming licenses. The MGCB writes to make you aware that any involvement in the offering of sporting event contracts, directly or via an affiliate, key person, related business entity, or other association, will have implications relative to your licensure in Michigan.”
Further on in the memo, it states that the MGCB is responsible for setting the qualifications and standards that need to be met to obtain a sports betting license in the state. With that, they also make it clear that offering these sports prediction markets directly impacts the character, integrity, and reputation of the sports betting market not just in the Michigan online gambling market, but others as well.