Kalshi Membership Puts Problem-Gambling Groups at Odds
Prediction markets face fresh scrutiny as NCPG defends Kalshi membership, while affiliates and regulators cut ties over gambling risks. The post Kalshi Membership Puts Problem-Gambling Groups at Odds appeared first on ReadWrite .
National Council on Problem Gambling (NCPG) President Derek Longmeier stated that prediction markets are functionally gambling, despite the organization defending Kalshi's membership. Kalshi donated $2 million and joined NCPG in June. Longmeier argued that regardless of legal classification, prediction markets can expose users to the same risks as traditional gambling.
This position drew pressure and prompted the resignation of Jaime Costello, NCPG's director of programs. The organization created a financial-services subcategory for Kalshi, a move some affiliates say blurred the line between harm-reduction outreach and endorsement. Nevada's chapter of NCPG ended its affiliation in August, citing a fundamental difference in how the organization should respond to emerging gambling risks.
Other states, including Michigan, Ohio, and Massachusetts, also cut ties with NCPG over the Kalshi membership. Kalshi and rival Polymarket argue their event contracts are financial instruments, not sports betting products. The Supreme Court has now taken up the underlying jurisdictional question, adding a federal dimension to the fight that has played out state by state and inside advocacy groups.
NCPG maintains it takes no position on whether prediction markets should be legal, focusing instead on preventing gambling-related harm. However, this stance hasn't satisfied regulators and affiliates who argue accepting Kalshi's money while calling its products gambling sends a mixed signal.
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