The National Council on Problem Gambling (NCPG) believes prediction markets are “functionally gambling” regardless of they are “currently legally defined.”
Tuesday‘s statement from Board President Derek Longmeier comes about two weeks after the Massachusetts Gaming Commission discussed potentially leaving the NCPG over its partnership with Kalshi announced in May.
The MGC meeting also revealed the Ohio Casino Control Commission had left the NCPG, joining the Michigan Gaming Control Board and the Nevada Council on Problem Gambling as the two other known groups to leave amid the NCPG’s expansion into financial services and trading.
Longmeier’s statement is now the third issued by the NCPG to address concerns over the Kalshi partnership. As part of the agreement, Kalshi is investing $2 million into an initiative focused on “trader health and safety.”
NCPG adds pop-up for statement
The NCPG makes sure the first thing seen when accessing its site is a pop-up containing a shorter version of the statement concerning prediction markets with a link to the full post:
Prediction markets have moved rapidly to a mainstream product used by millions of Americans. Regardless of how prediction markets are currently legally defined, NCPG believes trading event contracts is functionally gambling and carry the potential for significant gambling-related harm, particularly as access, advertising, and participation continue to expand.
As we were founded to protect those at risk and negatively impacted, we insist on getting ahead of any trending source of harm.
In the full statement, Longmeier emphasizes the urgency needed given how quickly “new platforms are reaching young Americans.”
“For more than 50 years, NCPG’s mission has been to serve individuals and families experiencing gambling-related harm,” Longmeier said. “That mission has never depended on a regulatory ruling or a legal label, and it does not now.”
“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.”
Previous NCPG messages
The first memo released concerning the Kalshi partnership came out June 15, about a month after the original announcement that created the new category.
“The creation of this membership subcategory reflects NCPG’s commitment to fostering informed dialogue, advancing research and education, strengthening consumer protections, and ensuring that individuals and families affected by gambling-related harm remain at the center of our work.
“Our goal is to better understand emerging risks and mitigate harm in order to ensure that those who may experience harm have access to the resources, support, and services they need.”
Just two weeks later, the NCPG was more direct in addressing a member question, titling the memo “Membership and Donations Do Not Equal Endorsement.”
“The answer is no,” the NCPG wrote (emphasis in original). “As a nonprofit organization, NCPG maintains a clear separation between funding and influence. … With full transparency, membership in NCPG does not constitute an endorsement of any organization or their products, services, business practices, or policy positions.“
Leavers disagree
It is not that cut-and-dry for the three organizations that have left.
NVCPG Executive Director Trey Delap told the Nevada Current there was a “fundamental difference in how we believe a problem gambling organization should respond to emerging gambling risks.”
MGCB Executive Director Henry Williams was a bit more direct: “I regret that this action is necessary but trust you understand the MGCB’s need to ensure that it is not associated with organizations that are affiliated with companies engaged in illegal gambling.”
That language is nearly identical to the letter sent by the OCCC, which was the first to leave the NCPG in June.
“I regret this action is necessary but trust you will understand the Commission’s need to ensure that it is not associated with organizations that are affiliated with companies engaged in illegal gambling in Ohio,” Interim Executive Director Andromeda Morrison wrote.
