The Nevada Council on Problem Gambling is moving to cut ties with the National Council on Problem Gambling, claiming the national group has betrayed its mission to protect consumers by partnering with prediction platform Kalshi. The divide between the two organizations mirrors the broader tensions within the gambling sector.
Nevada Remains a Bastion Against Prediction Markets
According to a Nevada Current report, the state group intends to cut its ties after months of negotiations with the National Council leadership failed to resolve the growing dispute. This dispute mostly centers on whether prediction markets should be treated as financial instruments or just another form of gambling that requires the same safeguards as those of mainstream gambling operators.
Nevada has taken a firm stance on the issue. The Nevada Gaming Control Board has even taken legal action against Kalshi, alleging that sports-based contracts constitute a type of sports betting and should therefore be subject to state gambling regulations. The state has ordered prediction platforms to stop offering such products to Nevada residents.
According to executive director Trey Delap, the decision to leave the national organization is based on a fundamental disagreement on how to handle gambling harm. Kalshi permits customers as young as 18, while the National Council supports a minimum gambling age of 21. The language used by prediction platforms can also complicate harm prevention efforts, especially among younger consumers.
The Nevada Group Felt It Had No Other Choice
The rift started in May when the National Council launched its Financial Services and Trading initiative, funded by Kalshi. The prediction platform committed $2 million over two years to bolster trader health and safety. This caused the Nevada Council’s attempt to pause its membership in June. When that request was denied, the Nevada group decided to terminate its relationship with the National Council.
We cannot lend Nevada’s name and credibility to an organization when we no longer believe we’re aligned on a fundamental consumer-protection issue.
Trey Delap, Nevada Council executive director
This dispute coincides with the growth of prediction markets across the USA. Prediction platforms are increasingly pivoting toward contracts tied to sports events, putting them in direct competition with licensed sportsbooks. While these companies contend that they are regulated at the federal level, state authorities counter that wagering on the outcome of a sports event is effectively a bet, regardless of the legal language.
Stakeholders including gaming, treatment, regulators, and other state councils are all having serious conversations about withdrawing or redirecting their support.
Trey Delap, Nevada Council executive director
The Nevada Council is not the only one to question the National Council’s approach. Washington’s Evergreen Council has also criticized the partnership with Kalshi, while the Michigan Gaming Control Board recently announced it would be withdrawing its support from the national organization. This rift leaves public health groups split between working with the new industry or challenging it from the outside.