The NCPG Issues Strong Statement on Prediction Markets

The National Council on Problem Gambling is done letting others speak for it on prediction markets.

The group issued a press release with a clear, strong opinion on the dangers prediction markets pose. It acknowledged the problem gambling risks the emerging industry brings, comparing it to those of regulated gambling.

However, the NCPG’s statement also made it clear that the group won’t be apologizing for adding Kalshi as a member anytime soon.

Prediction Markets Are “Functionally Gambling” 

The NCPG has refused to weigh in on the legality of prediction markets, saying its focus is only on problem gambling. However, the statement does refer to the industry as “functionally gambling,” which is why the risk for problem gambling is so high.

In the statement, the group highlighted how its views on the controversial industry match those of the public.

“NCPG’s position that prediction markets carry gambling-related risks is supported by broad public sentiment. A recent Harris Poll conducted on behalf of NCPG found that 85% of Americans agree people can develop unhealthy or addictive behaviors related to prediction market platforms, while 84% believe these platforms should be treated similarly to gambling when it comes to consumer protections.”

Any Solution Must Include Everyone

The statement follows three different state-level groups exiting the NCPG over its decision to add Kalshi as a member. The states represented by these groups are in legal battles with prediction markets, leading them to rip the national group for its decision.

While the NCPG didn’t name Kalshi in the statement, it made clear that it stood by the decision to add the operator.

We welcome engagement from gambling companies, sports leagues, prediction market platforms, financial-services organizations, regulators, policymakers, consumer advocates, researchers, community organizations, and prevention, treatment, and recovery professionals to advocate for and build real consumer protections such as responsible-engagement tools, self-exclusion options, age verification, clear risk disclosures, and direct lines to help. Our goal is to get ahead of harm, and we consider the aforementioned protections to be minimum standards for entities offering gambling and functionally gambling products.

Will More State Groups Exit?

Recently, the Massachusetts Gaming Commission considered exiting the NCPG over Kalshi’s membership. However, a meeting with the group led the regulator to remain.

The NCPG convinced the MGC to stay by sharing the same statements it would later make in the press release. It reaffirmed that its acceptance of Kalshi wasn’t approval of its offering, and explained why it made the decision. 

The regulator believed the focus on problem gambling mattered more than the impact of adding Kalshi, so it stuck with the group for the time being. 

Putting those statements into a press release ensures the public also understands the situation. As a result, it will put more pressure on state-level groups looking to leave over Kalshi’s inclusion.