NCPG Defends Kalshi Partnership Amid Industry Pushback

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Thu Sep 24, 2026, 10:00 am ET

Read Time: 4 minutes

NCPG Defends Kalshi Partnership Amid Industry Pushback

industry

The National Council on Problem Gambling (NCPG) is defending its partnership with Kalshi amid growing criticism from regulators and industry groups.

NCPG Board President Derek Longmeier issued the defense on September 22. His statement came as several organizations distanced themselves from the national problem-gambling group.

The statement also followed the resignation of NCPG Director of Programs Jaime Costello. Costello's departure added another layer to the dispute surrounding the organization's Kalshi relationship.

Longmeier said NCPG remains neutral regarding the legality of prediction markets. However, he stressed that the organization remains focused on reducing gambling-related harm.

"NCPG is neutral on whether prediction markets should be legal. We are not neutral on the need to prevent and reduce gambling-related harm wherever it occurs."

The comments followed NCPG's May partnership with Kalshi. Under the agreement, Kalshi committed $2 million over two years toward trader health and safety initiatives. NCPG also created a new Financial Services & Trading membership category for the company.

NCPG Focuses on Harm Rather Than Legal Classification

Longmeier said NCPG's mission does not depend on whether regulators classify prediction markets as gambling.

"For more than 50 years, NCPG's mission has been to serve individuals and families experiencing gambling-related harm," he said.

"That mission has never depended on a regulatory ruling or a legal label, and it does not now."

Longmeier added that consumers are already experiencing financial, emotional and relationship consequences from prediction markets.

"The harm is not theoretical, and we cannot wait to act," he said.

NCPG therefore intends to focus on consumer protection rather than resolving the legal dispute surrounding prediction markets.

The organization also said it welcomes participation from gambling companies, sports leagues, prediction-market platforms and regulators. Longmeier called for responsible-engagement tools, self-exclusion options and age verification.

He also identified clear risk disclosures and direct access to support services as necessary safeguards.

"Our goal is to get ahead of harm," Longmeier said. He added that these protections should represent minimum standards for gambling and functionally gambling products.

State Regulators Continue to Leave NCPG

NCPG's position has nevertheless triggered departures from several organizations.

The Nevada Council on Problem Gambling left NCPG this year after raising concerns about the Kalshi partnership. The Michigan Gaming Control Board also ended its membership in July. Meanwhile, the Evergreen Council on Problem Gambling withdrew its membership earlier in September.

Ohio also joined that group, although its departure occurred earlier than its public disclosure.

The Ohio Casino Control Commission (OCCC) withdrew its NCPG membership in June. The decision became public in September during a Massachusetts Gaming Commission meeting.

Ohio's departure carries particular significance because the OCCC is actively pursuing regulatory action against Kalshi.

The commission is seeking a $5 million fine against the company over its sports event contracts. Kalshi subsequently sued Ohio to challenge the planned penalty.

That regulatory conflict helps explain why NCPG's neutral position has drawn criticism from state authorities. The OCCC previously argued that NCPG's actions were inconsistent with its stated neutrality.

Kalshi Welcomes Dialogue With NCPG

Kalshi has defended its own approach to consumer protection while acknowledging the disagreement with NCPG.

"All financial markets have risk, especially those with retail participation, and it's exactly why we worked with the NCPG to create a new financial services category," Kalshi spokesperson Elisabeth Diana said.

"We have industry-leading consumer protections and resources for traders, and while we disagree with the NCPG on their assessment, we welcome the dialogue."

Kalshi continues to characterize its products as financial instruments rather than traditional sports betting. That distinction remains central to its disputes with state regulators.

At the same time, NCPG has increasingly emphasized that prediction markets can create risks associated with gambling. The organization says those risks warrant consumer protections regardless of the products' legal classification.

The dispute therefore extends beyond NCPG and Kalshi. It reflects a broader divide over how prediction markets should fit within the US gambling and financial markets.

As prediction markets expand into sports, their relationship with traditional US online sportsbooks will remain an important issue. NCPG's latest statement indicates that the organization intends to address potential consumer harms without taking a position on prediction-market legality.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

This site contains commercial content. We may be compensated for the links provided on this page. The content on this page is for informational purposes only. Betting News makes no representation or warranty as to the accuracy of the information given or the outcome of any game or event.