Michigan Gaming Control Board Leaves NCPG Over Kalshi Partnership

After the National Council on Problem Gambling partnered with Kalshi, a prediction market platform, the Michigan Gaming Control Board sent a letter announcing its exit from the partnership. 

"Accordingly, MGCB is formally withdrawing its membership from NCPG. Please remove all references to the MGCB’s membership or affiliation with NCPG immediately. Additionally, MGCB employees will no longer serve on any board or committee of NCPG and will no longer attend any NCPG events, including the annual conference," MGCB Executive Director Henry Williams wrote, addressing the letter to Heather Maurer, the Executive Director of the NCPG. 

Also in the note, there was mention of a temporary restraining order it had against Kalshi through July 13. 

The news from the MGCB came this past Thursday afternoon, and the letter to Maurer was sent Wednesday. 

Kalshi Partnership Prompted the Withdrawal

Upon becoming a member of the NCPG, Kalshi donated $2 million to help fund the Financial Trader Health and Safety Initiative, which 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.”

The partnership between Kalshi and the NCPG was announced on May 18, and since then, the NCPG has issued several press releases related to it, including one on Monday, which said that membership, sponsorships, and donations to the NCPG do not constitute endorsements by the NCPG. 

"The answer is no.

"As a nonprofit organization, NCPG maintains a clear separation between funding and influence. Contributions, sponsorships, membership dues, grants, and donations support our mission and programs. Still, they do not provide donors or members with authority over NCPG’s governance, policy positions, educational content, research priorities, advocacy efforts, strategic direction, or organizational decisions.

"NCPG’s educational programs, conference content, policy positions, research initiatives, and advocacy efforts are developed through established organizational processes and guided by our mission, available evidence, subject matter expertise, strategic plan, and the needs of those affected by gambling-related harm."

MGCB Raises Responsible Gaming Concerns

The notice from the MGCB was also pointed at Kalshi and the model of prediction markets. Williams was "deeply concerned" over Kalshi likening its sports event contracts to "investment" or "insurance products," saying this goes against a foundational message of responsible gaming: "that gambling in any form is for entertainment purposes only."

Williams ends the letter saying the following: 

"Finally, please note the MGCB is canceling its paid sponsorship for the conference scheduled at the end of July. We will follow up separately to address any steps necessary to ensure all references to MGCB sponsorship are removed.

"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."