Nevada Regulator Exits NCPG Over Kalshi Membership

The National Council on Problem Gambling has lost its second member in as many months.

According to the Nevada Current, the Nevada Council on Problem Gambling (NVCPG) has decided to exit the National Council on Problem Gambling (NCPG). The state-level group is believed to have exited over the national group’s decision to add Kalshi as a member back in May.

While the NVCPG’s plans weren’t revealed before the announcement, its decision is hardly a surprise. The responsible gambling group has submitted briefs on behalf of the Nevada Gaming Control Board in its case against Kalshi, which the regulator accuses of offering illegal gambling.

“Our decision is based on the elevated risk of harm to young people,” NVCPG Executive Director Trey Delap told the Nevada Current. “The activity on the Kalshi platform has the same effect as gambling. ‘Positions’ and ‘trades’ are euphemisms – the effect is the same as gambling, and carries the same risk of harm and suicide consistent with any other form of gambling. This risk is elevated among young people – Kalshi’s primary target.”

The Nevada responsible gambling group is the second to leave the National Council. Michigan was the first to leave in early July as the state's lawsuits against prediction markets were heating up.

Nevada’s exit took longer because leadership explored the possibility of simply suspending its membership. When the NCPG said that wouldn’t be an option, the NVCPG decided a full exit was warranted.

The NVCPG has already updated its site to swap out the NCPG’s hotline in favor of the Council on Compulsive Gambling of New Jersey’s (CCGNJ) 1-800-GAMBLER. 

Is the NCPG in Trouble?

Things have not been going the NCPG’s way over the last year.

It started in September, when the group lost a lawsuit over the operating rights to the well-known 1-800-GAMBLER hotline. It had been leasing the number from the CCGNJ, which decided it wanted to operate the hotline once again. While the NCPG warned the New Jersey group was too small to handle the workload, that hasn’t been the case.

In May, the Michigan Gaming Control Board exited the NCPG over its decision to add Kalshi. It ripped the National Council’s decision as being irresponsible, given the prediction industry’s lax attitude towards problem gambling.

With Nevada also leaving the group, it seems likely more could join. There are over a dozen states actively engaging prediction operators like Kalshi in lawsuits, showing a united and bipartisan opposition to the growing industry. 

Even if the NCPG were to force Kalshi out and return its sizable donation, it may not win trust back from state groups and regulators. Given the early success of state-run problem gambling groups, the NCPG may have dug itself into a hole it can’t escape.