Derek Longmeier, president of the National Council on Problem Gambling (NCPG), addressed the organization’s ongoing relationship with Kalshi this Tuesday amidst the departure of several member organizations. His letter took the opportunity to clarify NCPG’s neutral position on the legality of prediction markets, an issue that has prompted some member groups to withdraw from the NCPG altogether.
Longmeier’s comments came shortly after the resignation of NCPG’s director of programs, who stated she could no longer align her work with the organization’s recent direction. In recent months, member organizations from various states, including Michigan, Nevada, Ohio, and Washington, have cited NCPG's collaboration with Kalshi as a significant reason for their withdrawal. Each of these states has been involved in ongoing litigation against Kalshi.
NCPG and Kalshi announced a multi-year partnership in May, where Kalshi pledged to invest $2 million over two years, marking its status as a 'platinum member' of NCPG, alongside major companies such as DraftKings and MLB. This partnership created a new Financial Services & Trading Subcategory within NCPG and aimed at providing educational materials focused on responsible trading as well as enhancing consumer education initiatives.
In his statement dated September 22, Longmeier emphasized the NCPG's commitment to preventing gambling-related harm, regardless of the legal status of prediction markets. He stated, "For more than 50 years, NCPG's mission has been to serve individuals and families experiencing gambling-related harm… It does not now depend on a regulatory ruling or legal label."
However, this neutrality has been challenged. Andromeda Morrison, the interim executive director of the Ohio Casino Control Commission (OCCC), confirmed the commission’s decision to leave the NCPG in June, citing that NCPG's actions "are not neutral" and suggesting that the partnership undermined the OCCC’s efforts to tackle illegal gambling. Morrison voiced concerns that the collaboration with Kalshi might confuse consumers about the legitimacy and protections offered by licensed sportsbooks.
Days before Longmeier's statement, Jaime Costello, NCPG’s director of programs, announced her resignation, expressing that the shifting organizational environment conflicted with her beliefs regarding responsible gambling work.
Following Ohio’s departure, the Michigan Gaming Control Board and the Nevada Council on Problem Gambling also withdrew their memberships, indicating that the NCPG's partnership with Kalshi posed risks to state enforcement actions against unlicensed gambling. Michigan Gaming Control Board’s executive director, Henry Williams, stated that the NCPG was undermining state regulatory bodies nationwide.
The Washington Evergreen Council on Problem Gambling echoed these sentiments, asserting dissatisfaction with the NCPG’s responses regarding its partnership with Kalshi.
In response to inquiries from SBC Americas, other state regulators, including the Maryland Lottery and Gaming Control Agency, confirmed they have not renewed their memberships with the NCPG. The Illinois Gaming Board expressed support for the regulators reevaluating their ties to NCPG following the controversial decision to partner with Kalshi. The Pennsylvania Gaming Control Board acknowledged understanding the reasoning behind other states’ decisions to sever ties.
During a recent Massachusetts Gaming Commission meeting on September 10, commissioners also addressed concerns about the NCPG’s partnership with Kalshi, suggesting that future decisions might necessitate reassessing their own membership should conditions change.
As the situation develops, the NCPG faces scrutiny from various state regulators while attempting to maintain its mission of combating gambling-related harm amid increasing tensions over its partnerships.
