The National Council on Problem Gambling has defended its decision to accept prediction-market operator Kalshi as a member, arguing that it must address gambling-related harm wherever it arises rather than decide whether the products should be legal.
In a Sept. 24 statement, the council said prediction markets were now used by millions of Americans and should be considered functionally gambling, regardless of their legal definition. It said the platforms can create many of the same risks as traditional gambling, with financial, emotional and relationship consequences for users.
NCPG President Derek Longmeier said the organisation was neutral on the legality of prediction markets but not on harm prevention. He described the scale, speed and reach of the products, particularly to new and often young users, as unprecedented, and said consumer-protection infrastructure was not keeping pace with the platforms.
The council said it wanted providers of gambling and functionally gambling products to adopt minimum safeguards including responsible-engagement tools, self-exclusion, age verification, clear risk disclosures and direct routes to help. It said it welcomed participation from operators, regulators, researchers, treatment professionals and consumer advocates in developing those protections.
The defence follows criticism from members concerned about being associated with prediction markets, including contracts tied to sports and elections that are considered illegal gambling in numerous US jurisdictions. Kalshi’s membership prompted the Michigan Gaming Control Board, the Nevada Council on Problem Gambling and the Ohio Casino Control Commission to leave NCPG.
Kalshi became NCPG’s first Financial Services & Trading subcategory member in May, joining at Platinum level and committing $2 million over two years to the Financial Trader Health and Safety Initiative. The programme covers education and awareness across prediction markets and other trading products, including equities, options, cryptocurrencies and leveraged commodity futures.
NCPG said its donor-supported status did not amount to endorsement of contributors, and that membership, funding and collaboration gave no organisation control over its research, advocacy, policy positions or public statements. It said donations allow it to address gambling-related harm amid a lack of federal funding.
Kalshi operates a federally regulated exchange on future event outcomes. At the time of the May announcement, the company said it offered trading breaks, self-limits, self-exclusion and mental-health resources; its contribution was intended to support consumer education, awareness of problematic behaviour and responsible trading.
The council also pointed to a Harris Poll conducted on its behalf, in which 85% of Americans agreed that people can develop unhealthy or addictive behaviours related to prediction-market platforms, while 84% said the platforms should receive consumer protections similar to gambling.
