Kalshi Joins NCPG, Pledges $2 Million as Platinum Member

^{The NCPG will be using the money pledged by Kalshi to figure out the needs of prediction market users. (Photo courtesy of National Council of Problem Gambling)}

The National Council on Problem Gambling (NCPG) announced Monday that prediction market platform Kalshi will be joining the organization as a Platinum-level member, with Kalshi pledging to invest $2 million into the NCPG over two years.

Kalsi will become the first member in a new subcategory for the NCPG, known as the Financial Services & Trading Subcategory.

Gambling or Not, NCPG Looks to Reduce Risky Behaviors

The investment comes as Kalshi and other prediction markets look to differentiate themselves from sportsbooks and other forms of gambling. That issue has led to lawsuits in state courts across the country, as state gaming regulators say prediction markets are skirting sports betting laws while the platforms themselves say they are regulated solely at the federal level by the Commodity Futures Trading Commission (CFTC).

But the NCPG – which maintains a neutral stance on the legality of any specific gambling or trading products – says that its interest in prediction markets exists regardless of how they are categorized.

“NCPG’s role is not to determine whether a particular product or platform meets a legal definition of gambling,” NCPG Director of Policy and Partnerships Cole Wogoman said, via The Guardian. “Our responsibility is to understand where risky behaviors are emerging and ensure people have access to education, prevention resources, and support so we can help mitigate harm.”

In a press release, the NCPG announced a Financial Trader Health and Safety Initiative, which it says will “expand education and awareness of responsible trading across these markets through the development of practical, evidence-informed, and data-driven resources designed to keep pace with rapidly evolving platforms.”

“Innovation and responsibility can and must evolve together,” NCPG Executive Director Heather L. Maurer said in a statement. “Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”

While Kalshi might not want its services to be seen as betting, the company is acknowledging that it needs to get in front of the problem gambling issue.

“We have a responsibility here,” Kalshi Head of Government Relations John Bivona told Axios. “We want to set the standard. We hope others in the industry follow suit.”

Gambling Language Could Be Sticking Point for Partnership

That said, the details of the partnership haven’t yet been ironed out. According to Wogoman, the money being granted by Kalshi will help the NCPG figure out the needs of prediction market users. But given the hot-button issues surrounding prediction markets at the moment, there could be some tension points when integrating with an organization devoted to fighting problem gambling.

“We want to see [NCPG hotline] 1-800-MY-RESET promoted on these apps, and that’s what we are working on,” Wogoman told Axios. “Is there language we could use, rather than calling it the National Problem Gambling Helpline? Is there something we could use that would make traders or customers more comfortable calling if they’re feeling that they are running into problems?”

But regardless of the language used or the specific areas of partnership, Kalshi’s decision to join the NCPG appears to be an admission that problematic behavior can be an issue on prediction markets.

“At Kalshi, we believe in the power of prediction markets, and we are sensitive to the fact that they, like any financial trading products, come with risks,” Kalshi CEO Tarek Mansour said in a statement. “As prediction markets continue to evolve, we are deeply committed to setting a new standard for responsible trading by investing in the tools, education, and protections needed to promote healthy participation and customer safety and hope that over time all trading platforms with significant retail participation follow suit.”