Kalshi Partnership with National Council on Problem Gambling Raises Questions About Policy Gaps

Whether prediction markets, particularly their popular sports betting-style contracts, are gambling is an unsettled debate. Given the legal and regulatory chaos driven by that uncertainty, the partnership announcement between the National Council on Problem Gambling (NCPG) and prediction market heavyweight Kalshi has raised a few eyebrows.

Let’s recap: On May 18, the NCPG and Kalshi jointly announced a $2 million, two-year strategic initiative to support trader health and safety. To accommodate Kalshi — which is definitely not gambling but a “novel” financial product — the NCPG opened a new membership subcategory: Financial Services & Trading. 

Per the release, the new vertical will “expand education and awareness of responsible trading… through the development of practical, evidence-informed, and data-driven resources.”

In an email, Kalshi spokesperson Elisabeth Diana told Gambling Insider that Kalshi wants to lead in addressing risks inherent in every financial product.

NCPG is creating a new category – we’re joining as its first member and funding their new Financial Trader Health & Safety initiative. Gambling and trading are fundamentally different – trading is peer-to-peer, no house, you can exit your position at any time, but with any financial exchange, there are risks,” Diana wrote. “We want to lead the industry in mitigating those risks, and education plays a big part.”

NCPG: Needs Assessment Will Identify Communication, Policy Gaps

To help guide that education, Cole Wogoman, NCPG’s Director of Policy and Partnerships, told Axios that the NCPG will conduct a “needs assessment” of prediction market users. 

During a May 18 call with Gambling Insider, Wogoman said the NCPG realizes there are similarities between addressing prediction market risks and its existing work. The assessment will help identify gaps between need and what already exists, he said. 

Wogoman referenced NCPG’s National Problem Gambling Helpline ( 1-800-MY-RESET) as an example.

“Is there terminology we could use to make it more likely that someone who is struggling with prediction markets will call for help if they see it called the National Problem Gambling Helpline?,” he asked. 

Do they think that doesn’t apply to them? Do they think that they shouldn’t call, because it won’t help? Is there different verbiage we could use to make them understand that it applies to them and that we can get them help?

“We’re looking at all angles to make sure that we can get folks help or prevent problems the same way we do with traditional gambling,” he said.

NCPG isn’t considering rebranding the helpline outright, but the message delivered, he suggested, could align with the platform type. What that looks like will get “fleshed out in the needs assessment,”  Wogoman added.

“We’ll be looking at building our programs using some of the same core principles that we already have and already know work, but translating them in a way that they’re applicable to prediction market participants.”

Helpline Adoption Remains Up in the Air

Kalshi has not yet adopted the helpline as part of its responsible trading strategy, per Axios.

Wogoman told Gambling Insider that the NCPG encourages Kalshi and other prediction markets to include the helpline in their messaging.

“Our board of directors was very clear with their resolution that all prediction market operators should include 1-800-MY-RESET in all of their marketing and on their platforms,” Wogoman explained. 

He also stressed that the new partners were just starting that conversation.

Diana said much the same: Kalshi and NCPG are in discussions about how best to offer the helpline resources. She also referenced several additional changes Kalshi recently made to protect minors and traders, including ID checks, face ID requirements, and health-check monitoring.

“Two weeks ago, we rolled out a comprehensive package of safety features to make it harder for anyone under 18 to use Kalshi, including kids attempting to access our platform through a parent’s or older sibling’s account,” Diana wrote in her email. “We’re also introducing new safeguards to encourage responsible trading.” 

Who Called Whom?

When asked how and why the partnership conversation first started, the origin stories diverge. 

Kalshi approached NCPG about three months ago, according to Diana. 

“As prediction markets and new financial platforms scale, facilitating responsible trading is critical,” she said.

According to Wogoman, he contacted Kalshi and suggested that collaboration would make sense. NCPG “found a willing partner,” he stressed. 

“They understood that there are risks associated with their platform, and that we were best positioned to help mitigate problems for their customers.”

Internet Responsible Gambling Standards Will Get a Refresh

Wogoman also told Gambling Insider that NCPG is looking to update its Internet Responsible Gambling Standards (IRGS) to address prediction markets. 

Per the NCPG, the IRGS presents guidelines to ensure player protection remains at the forefront for operators, regulators, and vendors. The standards also form the basis of its Internet Compliance Assessment Program (iCAP), a US accreditation for best practices in online gambling player protection. To extend that accreditation to Kalshi and any peers that follow it to the NCPG, the council needs to tweak those standards. 

The standards are very applicable to prediction markets as currently written, Wogoman said, but a few points need clarification.

“It is going to be updated, but it’s not going to be a complete rewrite or anything. It is largely applicable. We just need to work on a few specific points.”

Current Kalshi Policies Conflict with Existing Standards

But as Steve Ruddock noted in the Straight to the Point newsletter, the distance between Kalshi’s policies and NCPG’s existing IRG standards could require more than a slight adjustment.

One example: the standards “strongly” recommend restricting access to any play, free or paid, to ages 21 and above, while Kalshi accepts anyone 18+. Gambling Insider’s high-level review of the IRGS indicates several other areas, including advertising, marketing, and payment, where Kalshi policies and practices conflict.

When asked about that tension, Wogoman responded that’s why the NCPG believes prediction markets like Kalshi should be certified. During the process, the NCPG could share best practices and ultimately, change the way they operate.

While separating itself from sports betting, the move to link up with the NCPG is “an acknowledgment that certain users may be engaging in troubling financial behavior on the platform,” Axios’ Nathan Bomey wrote.

From Kalshi’s release: 

“Kalshi operates a federally regulated exchange in which users trade on future event outcomes, with user safeguards in place like trading breaks, self-limits, self-exclusion, and mental health resources available to customers. We are different structurally from casinos and sport books because prices are set by market forces, Kalshi does not bet against its customers, and we follow all the same rules as every other derivative platform to ensure fair and impartial trading. The company recognizes the importance of consumer education, informed decision-making, and accessible support resources as new products emerge.”

While this shift may “quell (some) concerns from responsible gambling advocates, it is likely to be used as ammunition by its opponents,” wrote Ruddock.

The NCPG and its affiliates are part of the former. 

Partnership Proves PMs Enable Sport Gambling: AGA

The American Gaming Association (AGA) is part of the latter. To date, the organization has taken a hardline stance against sports-focused prediction markets in favor of states’ rights. 

In an email, Dara Cohen, AGA’s Senior Director, Strategic Communications & Media Relations, said the the Kalshi/NCPG tie-up makes plain what’s known: prediction markets enable sports gambling:

This partnership reinforces what we already know: prediction markets are facilitating sports gambling. A donation does not change the fact that the company is offering sports wagers outside state- and tribal-regulated law without established safeguards, transparency, licensing, and tax requirements that fund responsible gaming initiatives. If it looks and functions like sports betting, it should be regulated like sports betting.”

NCPG: Ignoring Prediction Market Risks Would Counter Mission

When asked whether NCPG had received pushback on the announcement from other members or affiliates, Wogoman said it was too soon to tell. 

He did say they received “a lot of positive responses,” saying this is “exactly what NCPG was meant to do.”

Wogoman added:

Our mission is very clear: to reduce and mitigate harm where it’s occurring. And right now, we believe there is harm occurring to folks engaged on these platforms, in the same way there’s harm occurring in crypto trading, day trading, or traditional gambling. We believe it’s our role to be there now.

“I think there’ll be folks who are at first maybe uncomfortable, but when they remind themselves of NCPG’s mission, what we do in this ecosystem, and why we’re here, it becomes pretty clear…

“We view this as a public health issue, and ignoring an emerging consumer behavior because it doesn’t fit into certain categories… would be irresponsible. It’s our job to be there and try to mitigate harm on all platforms.”

When Gambling Insider asked about the new membership vertical, Wogoman said the NCPG is “in dialogue with anyone in this space who will listen.” He’s optimistic that NCPG’s new membership category will expand in time.

“We’d love to see this subcategory grow and bring on folks in the financial services slash trading industry, not just prediction markets… all these areas where we think that there is risk. We’d love to see them start the conversation and become members.”