Michigan raises concern over CFTC-approved sports contracts
The Michigan Gaming Control Board (MGCB) has officially raised concerns with the U.S. Commodity Futures Trading Commission (CFTC) about “sporting event contracts” being offered in the state. These contracts allow people to take financial positions based on the outcomes of sports events, similar to internet sports betting.
In a letter to Acting Chairperson Caroline Pham, MGCB Executive Director Henry Williams explained that such contracts fall under the Lawful Sports Betting Act (LSBA). This law sets the rules for legal and responsible sports betting in Michigan. Williams warned that offering these contracts without a proper sports betting operator licence from the MGCB could break Michigan laws.
Williams said, “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. We are particularly concerned that such contracts are being promoted as investment opportunities, a message that directly contradicts Michigan’s responsible gaming principles.”
Key standards for internet sports betting in Michigan
The MGCB highlighted key rules that apply to internet sports betting in Michigan:
- Licensing and Oversight: All operators, platform providers, and certain individuals must be licensed, pass background checks, and prove they can protect consumers.
- Responsible Gaming: Michigan provides responsible gaming tools and runs a self-exclusion programme to support people with gambling problems.
- Consumer Protection: Licensed operators must keep patron funds safe, handle withdrawals quickly, and offer complaint resolution services.
- Event Integrity: All events and bet types must be approved by the MGCB and monitored for fairness and fraud.
Revenue and market protection concerns
The from licensed operators, it could reduce funds for state, local, and tribal governments. In 2024, over $20 million in taxes and fees from legal sports betting supported public services and responsible gaming.
“The potential for financial harm to both consumers and government programs is real,” added Williams. “Any erosion of the legal, regulated sports betting market undermines the very safeguards we have in place to protect Michiganders.”
The MGCB has also urged the CFTC to take these concerns seriously when deciding if sporting event contracts are in the public interest.
Recent actions by the MGCB
Recently, the MGCB issued cease-and-desist orders to the Panama-based operators of SportsBetting.ag and BetOnline.ag for illegally offering gambling services in Michigan. These platforms were found to be violating the Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code by accepting wagers on sports, casino games, politics, and more, without holding the required licences. The orders followed an investigation triggered by an anonymous tip, and the operators were given 14 days to stop all operations in the state or face further legal action.
In the weeks before, the MGCB also took action against several offshore and unlicensed gambling websites. It sent orders to 11 online platforms, like Club Player Casino and Bookmaker.eu, telling them to stop offering services in Michigan because they didn’t have state approval.
Earlier in April, the MGCB had already ordered 13 other websites to stop for the same reason. The agency said these sites did not follow Michigan’s rules for safe and fair gambling, protecting users, or keeping personal data secure.
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