NCPG Statement Addresses Dangers of Prediction Markets

The National Council on Problem Gambling wants the sports industry to know that it takes prediction markets seriously.

On Tuesday, the national group issued a press release warning that prediction markets are “functionally gambling.” This means they carry the same problem-gambling risks as sportsbooks, presenting a new danger for many bettors. 

However, the group stopped short of officially designating the emerging industry as a form of gambling. Instead, it focused on working with operators from both industries to find solutions to the growing gambling crisis.

“We have always been transparent that we are a donor-supported organization, fully auditable given our nonprofit status,” the statement reads. “Many of our members and donors are gambling operators. This allows us to go where the harm is, despite the lack of federal funding. Donor engagement does not mean endorsement. Membership, funding, or collaboration does not give any person or organization control over NCPG’s research, advocacy, policy positions, or public statements.”

The statement comes after three state-level responsible gambling groups chose to exit the NCPG after it added Kalshi as a member. This led to accusations that the groups were approving the controversial industry, despite the risks it brings.

While it didn’t mention Kalshi’s prediction market platform by name, the “engagement does not mean endorsement” line clearly addresses the issue. 

What Else Can the NCPG Do?

It’s been a rough year for the NCPG, which lost its famous 1-800-GAMBLER hotline before the drama around Kalshi. 

While the group’s actions over the hotline can be questioned, its decision on Kalshi is far easier to understand. By admitting the operator, it was accepting a $2 million donation that will help improve resources to fight problem gambling. 

Rejecting that would have meant losing that critical funding while the dangers of prediction markets continue to run rampant. 

The NCPG’s popularity may have taken a hit, but the group’s statement shows that protecting bettors across the US remains its top priority.