Kalshi is to become the first prediction market to join the National Council for Problem Gambling (NCPG) as the company aims to push back against a wave of recent negative press.
It will hand $2 million to the group as part of the deal, in a move that will support an initiative to promote safe and responsible trading practices.
“Innovation can and must evolve together”, says NCPG
In a statement, Heather L. Maurer, Executive Director of NCPG. said: “NCPG’s goal has always been to mitigate harm by increasing education, awareness, and understanding of risky behaviors, while ensuring access to trusted, scientific, and evidence-based information and healthcare resources,
“Innovation and responsibility can and must evolve together. Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”
Earlier this year, Kalshi announced it would become the first prediction market to embrace responsible gambling tools, such as deposit limits. Tarek Mansour, co-founder and CEO of Kalshi, said: “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,
“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.”
The partnership will see a new sub-category created within the NCPG for “Financial Services & Trading” firms. The NCPG is largely funded by the gambling industry and has previously been critical of the industry.
In February, the non-profit revealed strong concerns in a statement: “The buying and selling of futures contracts via prediction markets carries substantially similar levels of risk to the consumer as traditional sports betting, including risks associated with chasing losses, impulsive behavior, financial harm, and the development or escalation of gambling-related harm,” adding they were urging prediction markets to include the 1-800-MY-RESETNational Problem Gambling Helpline to all its messaging.
They added: “Consumers engaging with prediction markets may not recognize their activity as functionally gambling, irrespective of whether legally defined as such, and may therefore be less likely to demonstrate responsible gambling behavior or seek support for a gambling problem,”
Financial Trader Health and Safety Initiative will expand awareness, NCPG says
As part of the new partnership, NCPG will expand consumer education efforts, raise awareness of warning signs associated with problematic behavior and encourage responsible trading and informed decision-making. Kalshi will also join NCPG’s Leadership Circle, a group recognizing key partners that help strengthen the organization’s operations, long-term sustainability and innovation efforts.
Maurer added: “NCPG’s goal has always been to mitigate harm by increasing education, awareness, and understanding of risky behaviors, while ensuring access to trusted, scientific, and evidence-based information and healthcare resources.”
There are concerns that prediction markets are merely accelerating a gambling addiction epidemic spreading throughout the population and in young men in particular.
Cynthia Grant, vice president of clinical services at Birches Health, which operates a nationwide network of gambling addiction treatment providers, told AP Newsat the start of the month: “There may be real differences in how these products are defined or regulated, but in the therapy room, we are often seeing the same cycle of anticipation, action and reaction play out again and again,
“I sometimes think of it like different doors into the same room. The label on the door may change, but once someone’s inside, the experience can feel very familiar.”
Prediction markets face stiff resistance from state lawmakers
Meanwhile, state lawmakers across the country are rallying to restrict prediction markets, arguing platforms are operating as unregulated gambling businesses under the guise of financial trading. Officials in several states have introduced legislation or issued cease-and-desist orders targeting companies offering event-based contracts tied to sports, elections and other outcomes.
The pushback comes as prediction markets rapidly expand beyond political forecasting into sports and entertainment wagering. Critics say the products closely resemble traditional sportsbooks but fall outside state gaming frameworks because they are overseen federally by the Commodity Futures Trading Commission (CFTC).
Gaming regulators and tribal casino groups have warned that prediction market operators could undermine state-regulated betting industries that generate tax revenue and fund responsible gambling programs. Some lawmakers also raised concerns that consumers may not fully understand the financial and addiction risks tied to the platforms.
Prediction market companies have defended their offerings as legal financial instruments that provide valuable information about public sentiment and future events. The firms argue federal law gives the CFTC primary authority over the contracts, setting up a growing legal and political clash between state regulators and the emerging industry.
