Kalshi has committed to providing $2 million over the next two years to the National Council on Problem Gambling (NCPG) as the prediction market operator aims to redefine customer protection using terminology from financial trading amidst increasing scrutiny at the state level.
This funding will support the NCPG's new initiative, the “Financial Trader Health and Safety Initiative,” which is designed to enhance education and awareness regarding responsible trading practices across financial markets.
The initiative will focus on creating practical, evidence-based, and data-informed resources for rapidly evolving platforms that are attracting more retail participants.
Kalshi, along with other prediction market operators like Polymarket, asserts that they function as financial exchanges rather than gambling entities. They contend that their operations are governed by federal commodities law instead of state gambling regulations, a stance that is increasingly challenged by state officials who perceive prediction markets as a form of gambling that operates outside traditional oversight.
This debate has intensified as prediction markets have proliferated across the U.S., even in states where conventional gambling has been long restricted or prohibited. These platforms enable users to trade on the outcomes of various events, including elections, sports, geopolitical occurrences, and award ceremonies.
The expansion of prediction markets has coincided with the surge in U.S. sports betting following widespread legalization starting in 2018, raising concerns about addiction, risky behaviors, and the societal implications of products that merge retail participation with event-based outcomes. Notably, Kalshi reported over $1 billion in trading volume on Super Bowl Sunday this year.
Cole Wogoman, director of policy and partnerships at the NCPG, stated, “NCPG’s role is not to determine whether a particular product or platform meets a legal definition of gambling. Our responsibility is to understand where risky behaviors are emerging and ensure people have access to education, prevention resources, and support to help mitigate harm.”
As part of this collaboration, the NCPG has established a new membership subcategory for “Financial Services & Trading” firms. Kalshi will join as a “Platinum-level member,” becoming the first company in this new category. The nonprofit organization described this move as a significant commitment to long-term customer safety from the financial sector.
The NCPG is primarily funded by the gambling industry, with other “Platinum members” including MGM Resorts International, DraftKings, FanDuel, the NBA, MLB, and NFL, positioning Kalshi alongside casino operators, betting companies, and major sports leagues within the organization.
Kalshi has consistently distanced itself from gambling comparisons. In February, the company emphasized that its platform differs from casinos and sportsbooks, operating more like a derivatives market. However, on Monday, the company acknowledged the inherent risks associated with prediction markets.
Tarek Mansour, Kalshi’s co-founder and CEO, remarked that the company recognizes that prediction markets, “like any financial trading products, come with risks.” He added, “As prediction markets continue to evolve, we are deeply committed to establishing a new standard for responsible trading by investing in the tools, education, and protections necessary to promote healthy participation and customer safety. We hope that, over time, all trading platforms with significant retail involvement will follow suit.”
The NCPG indicated that this initiative arises amid broader public discussions about “emerging platforms and consumer protection, behavioral health, and financial well-being.” Wogoman also clarified that engagement with financial trading platforms and prediction markets should not be interpreted as support for any specific company or legal stance.
Kalshi reiterated this distinction in a social media post, asserting that while financial markets differ from casinos and sportsbooks, they still carry risks. The company emphasized that no financial market with substantial retail participation is devoid of risk.