Michigan regulator opens investigations into unlicensed sports prediction platforms
The MGCB says unregulated platforms may expose residents to risks.
US.- The Michigan Gaming Control Board (MGCB) has initiated investigations into unlicensed sports prediction markets. The regulator said the platforms had raised concerns about consumer protections.
It stated: “Michigan’s investigations align with similar actions already taken by other state regulatory bodies and focus on how this form of unlicensed sports betting may jeopardize the integrity of Michigan’s legal sports betting system.
“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.”
Henry Williams, executive director of the MGCB, said: “We take consumer protection very seriously and are committed to ensuring that Michigan residents are engaging with safe and legal sports betting options. 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 MGCB is also concerned that promoting sports betting as an investment opportunity contradicts responsible gaming principles. Williams said: “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.”
The MGCB recently took action against 13 offshore gambling websites, which were found to be unlawfully targeting Michigan residents. The websites Captain Jack Casino, Casino Brango, Ducky Luck Casino, El Royale Casino, Jazz Casino, Jazz Sports Casino Racebook, Looselines, Planet 7 Casino, Red Dog Casino, Royal Oak Casino, Silver Oak Casino, Skybook, and Slots of Vegas were operating without state licences.
