Kalshi is set to contribute $2 million over the next two years to the National Council on Problem Gambling. This move comes as the prediction market operator aims to articulate customer protection through a financial trading lens amidst increasing scrutiny from state regulators.
The funding will back the NCPG’s new “Financial Trader Health and Safety Initiative,” designed to enhance education and awareness regarding responsible trading practices across various financial markets.
This initiative will curate practical, evidence-based, and data-centric resources for rapidly evolving platforms, which are witnessing a surge in retail investor participation.
Kalshi, alongside other prediction market platforms such as Polymarket, asserts that they function as financial exchanges rather than gambling establishments. They maintain that their operations are governed by federal commodities law rather than state gambling regulations, a viewpoint that state officials increasingly contest, perceiving prediction markets as gambling entities that operate outside standard regulatory frameworks.
This debate has escalated as prediction markets proliferate across the United States, even in regions where traditional gambling has long been limited or outlawed. These platforms empower users to trade on the outcomes of various events, including elections, sports, geopolitical issues, and award ceremonies.
This expansion coincides with the rise of sports betting in the U.S., catalyzed by the widespread legalization that began in 2018. This trend has fueled concerns about addiction, risky behaviors, and the broader societal effects of products that merge retail participation with event-driven outcomes. Kalshi reported over $1 billion in trading volume during this year’s Super Bowl Sunday.
“The NCPG’s function is not to ascertain whether a specific product or platform fits the legal definition of gambling,” stated Cole Wogoman, the NCPG’s Director of Policy and Partnerships. “Our key responsibility is to identify emerging risky behaviors and ensure individuals have access to necessary education, prevention resources, and support to help minimize potential harm.”
Under this partnership, the NCPG has introduced a new membership tier specifically for “Financial Services & Trading” companies. Kalshi will step in as a “Platinum-level member,” marking it as the inaugural entity in this new category. The nonprofit characterized this step as “a significant commitment to long-term customer safety from the finance sector.”
The NCPG primarily receives funding from the gambling industry. Its other “Platinum members” consist of notable names such as MGM Resorts International, DraftKings, FanDuel, the NBA, MLB, and NFL, placing Kalshi alongside industry giants within the organization’s framework.
Kalshi has consistently rejected associations with gambling platforms. In February, the company highlighted its distinction from casinos and sportsbooks, claiming to operate similarly to a derivatives market. However, on Monday, Kalshi acknowledged the inherent risks within prediction markets.
Tarek Mansour, Kalshi’s co-founder and CEO, mentioned on Monday that the company understands that prediction markets, “like all financial trading products, entail risks.”
“As these markets continue to evolve, we are genuinely committed to establishing a new benchmark for responsible trading by investing in necessary tools, education, and safeguards to promote healthy involvement and ensure customer welfare. We aspire for all significant trading platforms with retail participation to adopt similar practices over time,” he added.
The NCPG stated that the initiative is being launched amid broader public discourse concerning “emerging platforms and the need for consumer protection, behavioral health, and financial well-being.” Wogoman noted that interaction with financial trading platforms and prediction markets does not imply endorsement for any specific company or legal standpoint.
Kalshi echoed this distinction in a social media update on Monday, emphasizing that financial markets are distinct from casinos and sportsbooks but still encompass risks. The company reiterated that virtually no financial market with substantial retail involvement is devoid of risk.