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State of Play’s TL;DR
- The National Council on Problem Gambling says prediction markets carry gambling-like risks.
- But its relationship with Kalshi has triggered exits from affiliates and regulators.
The National Council on Problem Gambling said this week that prediction markets can expose consumers to many of the same risks as traditional gambling, but the organization is also facing growing fallout over its relationship with Kalshi.
The dispute has led to exits by affiliated problem gambling groups and state regulators.
NCPG Board President Derek Longmeier said in a statement that the organization views prediction markets as “functionally gambling,” even as it remains neutral on whether they should be legal.
Affiliate split follow NCPG statement
NCPG released its prediction markets statement on Tuesday.
The Evergreen Council on Problem Gambling then ended its 35-year affiliation with NCPG. Evergreen said it left because of how NCPG embraced Kalshi as a member and because of concerns about governance around the funding arrangement.
Kalshi joined NCPG in May and pledged a $2 million investment over two years.
Evergreen said NCPG accepted that funding without prior review and approval from the NCPG board. The group also said its executive director, Maureen Greeley, was not given a copy of the Kalshi agreement, and that it had requested more details in a June letter.
Regulators also left as questions continue
The backlash was not limited to affiliates. The Ohio Casino Control Commission withdrew from NCPG in June, while the Michigan Gaming Control Board announced its departure in early July. The Nevada Council on Problem Gambling also left in protest over Kalshi’s membership.
Louis Ruggiero, who has spoken publicly about losing $10 million to gambling addiction, called on NCPG leaders to resign and asked for more transparency about how the Kalshi money has been used.
NCPG responded by saying it is a donor-supported nonprofit and that donor engagement does not equal endorsement. The organization said membership, funding, or collaboration does not give any outside party control over its research, policy positions, advocacy, or public statements.
Based on reporting by Adam Roarty for Gaming America.
