The National Council on Problem Gambling (NCPG) has adopted a more assertive position regarding prediction markets, citing potential financial, emotional, and relational damages linked to the sector. This decision follows months of scrutiny over its approach to Kalshi's membership.
In a statement released on Tuesday, NCPG board president Derek Longmeier emphasized that individuals are facing significant “real financial, emotional, and relationship consequences due to prediction markets.”
“The harm is tangible, and we cannot delay our response. NCPG's mission is not to determine whether prediction markets or similar activities fit the legal definition of gambling, but rather to mitigate and prevent gambling-related harm wherever it appears,” Longmeier stated.
The NCPG proposed that the baseline requirement for organizations providing “gambling and functionally gambling products” should be to “promote and establish genuine consumer protections, including responsible engagement tools, self-exclusion options, age verification, transparent risk disclosures, and direct access to support services.”
This statement comes in the wake of intensified criticism after Kalshi became the first prediction market to join NCPG in May. The company also contributed $2 million to enhance “trader health and safety,” while continuing to refer to its user activities as “trading” instead of “betting” or “gambling.”
NCPG introduced a new membership category for Kalshi, labeled “financial services and trading companies,” a decision that faced backlash from various problem gambling organizations.
Following this, the Nevada Council on Problem Gambling decided to leave NCPG. Its executive director, Trey Delap, expressed concerns that the “scale and visibility of this partnership might confuse the distinction between harm reduction efforts and endorsement.”
In July, the Michigan Gaming Control Board (MGCB) terminated its NCPG membership, stating: “Kalshi's description of its sports event contracts as investment products contradicts responsible gaming principles, which advocate for viewing gambling as a form of entertainment rather than a financial strategy.”
Earlier in September, the Evergreen Council on Problem Gambling also withdrew its membership, citing dissatisfaction with NCPG's management of the situation. It had previously expressed concern over the Kalshi partnership, noting that the prediction market “has demonstrated minimal regard for consumer protections while persistently denying that its activities amount to gambling.”
Longmeier noted in June that “being a member of NCPG does not equate to endorsing any organization or its products, services, business practices, or policy positions.”
Kalshi spokesperson Elisabeth Diana remarked, “All financial markets carry risks, especially those involving retail participation, which is why we collaborated with NCPG to establish a new financial services category. We offer industry-leading consumer protections and resources for traders, and while we may disagree with NCPG's evaluation, we appreciate the ongoing dialogue.”