The board president of the National Council on Problem Gambling (NCPG) spoke out Tuesday on the non-profit’s relationship with Kalshi that is leading some member organizations to quit the group.
Derek Longmeier’s letter affirming NCPG’s “neutral” stance on prediction markets legality arrived shortly after its director of programs resigned, saying she could “no longer reconcile” how she believed her work should be done with the organization’s direction in the past year.
In recent months, members from numerous states have cited the Kalshi collaboration as the reason for ending their affiliation with the NCPG, including:
- Michigan
- Nevada
- Ohio
- Washington
All of those states have been involved in federal and/or state court litigation with Kalshi for months.
What is NCPG’s relationship with Kalshi?
In May, Kalshi and the NCPG unveiled a new multi-year partnership wherein Kalshi committed to invest $2m over two years, and the NCPG established a new Financial Services & Trading Subcategory of membership.
Kalshi became a ‘platinum member’ of NCPG, a status also held by DraftKings, FanDuel, the NFL, and MLB among others. The company also joined NCPG’s Leadership Circle, which the council said recognized the company’s role as “a leading partner contributing to the organization’s operational strength, long-term sustainability, and capacity for innovation.”
The partnership includes:
- Developing educational resources for responsible trading and products such as cryptocurrency and futures
- Promoting responsible trading
- Expanding the NCPG’s consumer education campaigns
NCPG sticks to neutrality in statement
In a public statement issued Tuesday, Sept. 22, NCPG Board President Derek Longmeier wrote that while the NCPG is “neutral” on whether prediction markets should be legal, “we are not neutral on the need to prevent and reduce gambling-related harm wherever it occurs.”
“For more than 50 years, NCPG’s mission has been to serve individuals and families experiencing gambling-related harm,” added Longmeier. “That mission has never depended on a regulatory ruling or a legal label, and it does not now … NCPG exists not to litigate whether prediction markets or other emerging activities meet a legal definition of gambling, but to prevent and reduce gambling-related harm wherever it occurs.”
Longmeier emphasized that “donor engagement does not mean endorsement” and that membership, funding, or collaboration does not give any organization control over NCPG’s research, advocacy, or policy positions.
Ohio regulator quits, says Kalshi deal not neutral
However, the decision to accept funding from Kalshi and work collaboratively with the company has met with stern criticism from gambling regulators and other non-profits in several states, particularly some that are fighting Kalshi in court. In some cases, it has led to states severing ties with NCPG.
Ohio Casino Control Commission (OCCC) Interim Executive Director Andromeda Morrison confirmed last week to SBC Americas that the commission left the NCPG in June, as first revealed publicly during a Massachusetts Gaming Commission (MGC) meeting on Sept. 10. Ohio is engaged in active litigation with Kalshi, and the OCCC is also seeking a $5m fine against the company.
Morrison wrote in a letter to NCPG Executive Director Heather Maurer on June 26 that, despite the NCPG’s public stance, “NCPG’s actions are not neutral.”
“Instead, it seeks to legitimize an illegal sportsbook operating in Ohio and undercut the Commission’s efforts to eliminate this source of unlicensed gambling,” Morrison added. “At a minimum, it creates consumer confusion as to whether this prediction market platform carries the same protection as licensed sportsbooks. It does not.”
The NCPG did not provide a comment to SBC Americas on Ohio’s departure when asked last week, before Longmeier’s public statement. Longmeier’s comments were posted on the same day that NCPG Director of Programs Jaime Costello announced her resignation from the council, writing that “over the past year, the environment shifted in ways I could no longer reconcile with how I believe this work should be done.”
Litigating states leave NCPG
The OCCC’s exit came weeks before both the Michigan Gaming Control Board and the Nevada Council on Problem Gambling confirmed that they relinquished their memberships for similar reasons.
In early July, MGCB Executive Director Henry Williams wrote to Maurer to formally withdraw the state regulator from the NCPG. Williams wrote that by partnering with Kalshi, “NCPG directly undermines state enforcement actions and risks weakening the positions of state regulatory bodies nationwide.”
Like Morrison, Williams also suggested Kalshi’s membership “creates substantial confusion by suggesting to the public that Kalshi is subject to the same consumer protections, licensing requirements, and regulatory oversight as licensed sports betting operators.”
Then, the Nevada council’s Executive Director, Trey Delap, told the Nevada Current in August that it would leave the NCPG because of serious concerns about the risks posed by Kalshi’s products and “a fundamental difference in how we believe a problem gambling organization should respond to emerging gambling risks.”
Last week, Washington’s Evergreen Council on Problem Gambling (ECPG) also pulled out. Its board president, Ty W. Lostutter, wrote in a letter to Maurer that ECPG directors were not satisfied with the NCPG’s responses to questions about the investment relationship with Kalshi, which “caused us to question whether NCPG continues to operate with the best interests of its affiliates and stakeholders in mind.”
Other regulators support exits
SBC Americas reached out to other state gaming regulators for this story.
- Some, including the Maryland Lottery and Gaming Control Agency, said that they have not renewed their memberships, but did not elaborate on the reasoning behind the decision.
- Illinois Gaming Board (IGB) Director of Communications Beth Kaufman told SBC Americas that while the IGB is not a member of the NCPG, “we support our fellow state gaming regulators who have reevaluated their NCPG memberships following NCPG’s regrettable decision to partner with and accept money from Kalshi.”
- Pennsylvania Gaming Control Board (PGCB) Communications Director Douglas Harbach said via email that while the PGCB has not rescinded its own membership, it “certainly understands and respects” other jurisdictions’ decisions to end their affiliation with the NCPG.
In the Massachusetts Gaming Commission’s Sept. 10 meeting, the MGC ultimately decided to continue a ‘silver-level’ membership. However, some commissioners expressed serious reservations.
Eileen O’Brien said that “it may be that there comes a time sooner rather than later where we have to sever ties.” Nakisha Skinner added that while she would lean towards breaking ties with NCPG, she believes that would be inconsistent with how the MGC has treated other entities that engage in prediction market activity, like its own sports wagering licensees.
MGC Chair Jordan Maynard stressed that, amid Massachusetts’ own ongoing litigation with Kalshi, the NCPG “should be on notice” that the commission may re-evaluate its position at the time of its membership renewal.
