The National Council on Problem Gambling (NCPG) has issued a warning about the potential harms of prediction markets, emphasizing the financial, emotional, and relationship consequences that people may face due to engaging in such activities. This warning comes after a period of criticism regarding Kalshi’s membership within the organization.

In a statement released on Tuesday, NCPG board president Derek Longmeier highlighted that individuals are experiencing real harm as a result of participating in prediction markets.

Longmeier stated, “The harm is not theoretical, and immediate action is necessary. NCPG’s focus is not on the legal definition of gambling but on preventing and reducing harm associated with all forms of gambling.”

NCPG advocates for entities offering gambling products to implement consumer protections, such as responsible engagement tools, self-exclusion options, age verification, clear risk disclosures, and access to support services.

This statement follows increased scrutiny after Kalshi became the first prediction market to join NCPG in May. The company provided $2 million in funding for “trader health and safety” while maintaining that its activities are focused on trading rather than gambling.

NCPG introduced a new membership category for Kalshi, referred to as “financial services and trading companies,” prompting backlash from some problem gambling organizations.

The Nevada Council on Problem Gambling withdrew from NCPG in response to the partnership with Kalshi. Executive director Trey Delap expressed concerns about the potential confusion surrounding harm reduction efforts and official endorsements.

In July, the Michigan Gaming Control Board terminated its NCPG membership, citing discrepancies between Kalshi’s depiction of sports event contracts as investment opportunities and responsible gaming principles that promote gambling as entertainment rather than a financial strategy.

The Evergreen Council on Problem Gambling also terminated its NCPG membership in early September, citing dissatisfaction with NCPG’s handling of the situation. The council previously criticized Kalshi for its lack of consumer protections and denial of gambling activities.

In response to these developments, Kalshi spokesperson Elisabeth Diana emphasized that membership in NCPG does not imply endorsement of the organization or its offerings. Diana highlighted Kalshi’s industry-leading consumer protection measures and resources for traders, expressing a willingness to engage in dialogue with NCPG despite disagreements.