The Michigan Gaming Control Board (MGCB) has issued a firm warning to licensed gambling operators, advising that any connection—direct or indirect—to sports-event contracts may jeopardize their licenses in the state. In a memorandum released Friday, the MGCB cautioned that even activities involving affiliates or partners in other jurisdictions could have licensing consequences.
“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,” the memo stated.
The advisory applies to a wide range of entities, including commercial casinos, internet gaming operators and suppliers, sports betting firms, and fantasy contest providers.
Out-of-State Activities Also Under the Microscope
The MGCB stressed that its licensing standards account for conduct across all jurisdictions — particularly those that have taken regulatory action against sports-event contracts. These include Arizona, Illinois, Massachusetts, Maryland, Montana, Nevada, New Jersey, and Ohio.
According to the board, operators must demonstrate “character, reputation, integrity, business probity, and financial ability” through “clear and convincing evidence,” which can be influenced by their activities or those of associated entities, whether in Michigan or elsewhere.
The memo highlighted several prohibited actions, such as facilitating sports-event contracts without MGCB approval or partnering with entities that do so in states where regulators have opposed or banned such markets.
Implications for Big-Name Operators
This notice could have major implications for several national operators active in Michigan’s market, particularly those exploring entry into the emerging space of prediction markets.
DraftKings, which accounts for 28.6% of Michigan’s mobile sports betting handle, has reportedly held talks about acquiring Railbird Exchange, a CFTC-regulated prediction market. CEO Jason Robins told Bank of America analyst Shaun Kelly in September: “We have to make sure that we have the right thing and we are prepared to do it. It’s pretty simple. I think the TAM [Total Addressable Market] opportunity is likely to be very significant in states that do not have legal online sports betting.”
FanDuel, Michigan’s leading operator with 36.5% of mobile handle, has partnered with the Chicago Mercantile Exchange (CME), which may support prediction contracts. CME CEO Terry Duffy recently said he’s open to offering such contracts, although FanDuel has not committed to participating.
PrizePicks, which offers peer-to-peer fantasy contests in Michigan, has gained registration as a Futures Commission Merchant and is planning to launch a new platform, PrizePicks Predict.
Underdog, another fantasy sports provider in the state, has introduced a predictions platform in partnership with the North American Derivatives Exchange.
MGCB Continues Crackdown on Unlicensed Activity
The warning comes on the heels of several recent enforcement moves by the MGCB, including cease-and-desist orders against 14 unlicensed online casinos and the blocking of offshore sportsbook Bovada earlier this year.
The message is clear: any link to sports-event contracts—especially in jurisdictions that oppose them – could put Michigan licensure at risk.
Source:
“Michigan regulator warns licensed operators over sports event contracts”, linkedin.com, October 4, 2025
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