Prediction markets, and especially sports event contracts, are, as we all know, “not gambling,” never mind that Kalshi is a member of the National Council on Problem Gambling (NCPG). The NCPG itself has conducted a survey according to which 45% of Americans equate prediction markets to a form of gambling.
Health Experts and Gambling Addiction Specialists Warn Over Risky Products
While the legalese is best left for the courts to sort out, the reality on the ground is that public health resources and experts across the United States are sounding the alarm over the impact prediction markets are having on consumers, driving problems best described as akin to pathological gambling.
The Guardian, which did the original reporting, cited multiple specialists in the mental health field specializing in addressing gambling problems, among which is Timothy Fong, an addiction psychiatrist and gambling researcher at UCLA, who said that having more people participate in “risky products” would naturally lead to more “side effects.”
Fong has also added that the available resources are usually used to address issues that take place at mainstream gambling companies, and they are “phenomenally behind.”
Moreover, these resources are not nearly well-funded, as states spend millions of dollars a year to address alcohol and tobacco-related problems, but the funding has not been increased to acknowledge the ongoing issue that arises from gambling-related harm.
To add insult to injury, there is also a lack of clear indication of who is responsible for that help.
Who Should Be Responsible for Helping People?
“Who’s responsible for taking care of the needs of people who develop harm from these products?” Fong added.
Another challenging aspect anyone who works in the field faces is that there are far more people who are experiencing gambling-related harm than the official estimates indicate.
But there are other intricacies to how people access responsible gambling and whether they can do it. Fong argues that many people actually do not reach for the phone or conduct a Google search.
“They endure. They suffer quietly,” Fong explains. The Guardian also highlighted another issue in its reporting – the fact that even in places such as Utah, where there is no legalized gambling, people are still gambling and they still need help.
Without legalization, there is no actual support going to people.