MGCB Letter to CFTC: Event Contracts Undermine Legal Betting

The Michigan Gaming Control Board (MGCB) sent a letter to the Commodity Futures Trading Commission (CFTC), raising several concerns regarding the sporting event contracts available in the state.

The letter, dated 29 April, was addressed to Acting Chair Caroline Pham. The MGCB stressed that the contracts are no different from internet sports betting wagers that are subject to the Lawful Sports Betting Act (LSBA).

As such, the regulator argues that they must fully comply with the LSBA to ensure a legal, fair, and responsible framework for sports betting. Entities offering sports betting opportunities in Michigan must obtain an operator license from the MGCB to be compliant.

CFTC Approved Entities Still Bound by State Rules, Says MGCB

The regulator argues that those who offer sporting event contracts without such a license violate Michigan law. 

The MGCB executive director, Henry Williams, stated: “The offering of sporting event contracts by CFTC-regulated entities, without adherence to Michigan’s licensing requirements and in a manner that may not meet prescribed consumer protections, exposes Michigan residents to unnecessary risk and undermines public trust.”

Williams added: “We are particularly concerned that such contracts are being promoted as investment opportunities, a message that directly contradicts Michigan’s responsible gaming principles.”

Apart from endangering players, the regulator also raised concerns that diverting sports betting activity from licensed operators could reduce state, local, and tribal government revenues.

The document argues that in 2024, legal sports betting operators in Michigan contributed over $20 million in taxes and fees, resources used to support public services and responsible gambling programs.

Call for Federal-State Regulatory Alignment

If unlicensed providers can operate in the state, they would do so without paying taxes and fees, which could harm consumers and government programs financially. 

Williams argued that the threat is real: “Any erosion of the legal, regulated sports betting market undermines the very safeguards we have in place to protect Michiganders.”

The MGCB urged the federal regulator to consider these concerns and evaluate whether sporting event contracts serve the public interest. 

The MGCB has been cracking down on unlicensed operators in its state for some time now, recently issuing cease-and-desist orders to eleven online casinos.

The post MGCB Letter to CFTC: Event Contracts Undermine Legal Betting appeared first on CasinoBeats.

 The Michigan Gaming Control Board (MGCB) sent a letter to the Commodity Futures Trading Commission (CFTC), raising several concerns regarding the sporting event contracts available in the state. The letter, dated 29 April, was addressed to Acting Chair Caroline Pham. The MGCB stressed that the contracts are no different from internet sports betting wagers that
The post MGCB Letter to CFTC: Event Contracts Undermine Legal Betting appeared first on CasinoBeats.