The National Council on Problem Gambling (NCPG) has taken a firmer stance on prediction markets, warning of financial, emotional, and relationship harms associated with the industry following months of criticism over its handling of Kalshi’s membership.
In a new statement published Tuesday, NCPG board president Derek Longmeier said people are experiencing “real financial, emotional, and relationship consequences as a result of prediction markets.”
“The harm is not theoretical, and we cannot wait to act. NCPG exists not to litigate whether prediction markets or other emerging activities meet a legal definition of gambling, but to prevent and reduce gambling-related harm wherever it occurs,” Longmeier said.
NCPG said the minimum standard for entities offering “gambling and functionally gambling products” should be to “advocate for and build real consumer protections such as responsible-engagement tools, self-exclusion options, age verification, clear risk disclosures, and direct lines to help.”
The statement follows criticism that intensified after Kalshi became the first prediction market to join NCPG in May. The company also provided $2 million in funding to support “trader health and safety,” while continuing to describe its user activity as “trading” rather than “betting” or “gambling.”
NCPG created a new membership category for Kalshi, called “financial services and trading companies,” a move that drew criticism from some problem gambling organizations.
The Nevada Council on Problem Gambling subsequently exited NCPG. Its executive director Trey Delap said the “scale and visibility of this partnership may create confusion regarding the distinction between harm reduction engagement and endorsement.”
In July, the Michigan Gaming Control Board (MGCB) canceled its NCPG membership, saying: “Kalshi’s characterization of its sports event contracts as investment products conflicts with responsible gaming principles, which emphasize that gambling should be viewed as entertainment rather than a financial strategy.”
The Evergreen Council on Problem Gambling withdrew its membership earlier in September, citing NCPG’s handling of the issue. It had previously said it was “troubled” by the Kalshi partnership and that the prediction market “has shown little regard for consumer protections while continuing to deny its activities constitute gambling.”
Longmeier said in June that “membership in NCPG does not constitute an endorsement of any organization or their products, services, business practices, or policy positions.”
“All financial markets have risk, especially those with retail participation, and it’s exactly why we worked with the NCPG to create a new financial services category,” Kalshi spokesperson Elisabeth Diana said. “We have industry-leading consumer protections and resources for traders, and while we disagree with the NCPG on their assessment, we welcome the dialogue.”