The National Council on Problem Gambling’s (NCPG) decision to partner with the Kalshi prediction market firm has led the affiliated Nevada group to sever ties with the organization.
Kalshi donated $2 million to the NCPG in May, which later announced a new category within the organization for prediction markets. The Nevada Council on Problem Gambling is ending its association with the national group after Kalshi was ordered to cease operating in the state as part of ongoing litigation with the Nevada Gaming Control Board.
“After months of discussion, we’ve concluded that this is not simply a disagreement about one company,” Nevada Council Executive Director Trey Delap told the Nevada Current. “It reflects a fundamental difference in how we believe a problem gambling organization should respond to emerging gambling risks.”
Nevada Court Battle Continues
Kalshi and other prediction markets have faced legal battles at the state and federal levels since the company began offering sports event contracts in 2025. State gaming regulators claim the platforms circumvent state gaming laws.
Prediction market firms argue that their offerings are different from traditional sports betting and are more akin to traditional financial markets. The Commodity Futures Trading Commission regulates the industry at the federal level, they contend.
Whether the Nevada Council’s move matters in the long run may hinge on whether the Nevada Gaming Control Board wins its federal lawsuit against Kalshi. A judge granted the gaming board’s request to halt Kalshi operations in the state as court proceedings continue to play out.
By joining the NCPG, state groups gain share in the parent organization’s strategic, operational, and educational goals and opportunities.
Delap said accepting prediction markets into the organization shows how pervasive gaming has become in American society. He said the controversy surrounding prediction markets “has exposed a larger problem: Gambling innovation is moving faster than the public health infrastructure designed to address it. Our answer isn’t to fight yesterday’s battle. It’s to build what the field needs next.”
Growing Trend?
The Nevada chapter is also concerned that prediction markets like Kalshi allow users as young as 18 to trade on the platforms, while most states set the minimum age to gamble at 21. Delap told The Current that other state groups have also signaled they may leave the national organization.
The Michigan Gaming Control Board (MCGB) withdrew support for the NCPG in July.
“In a letter to the NCPG, the MGCB stated that Kalshi has been involved in litigation with Michigan and several other states over its offering of sports event contracts without state gaming licenses,” the board noted.
“The MGCB expressed concern that the partnership could undermine state regulatory efforts and create confusion by suggesting Kalshi operates under the same consumer protection and regulatory oversight as licensed sports betting operators.”
The Evergreen Council in Washington has also expressed concerns about the prediction market partnership.
Sports Betting Concerns Grows
American sports betting has surged in popularity since the Supreme Court overturned a virtual federal ban on betting outside the state of Nevada in 2018. A total of 39 states as well as Washington D.C. and Puerto Rico now have legalized betting markets.
The American Gaming Association reported in May that total revenue from commercial sports betting operations reached $16.89 billion in 2025, a 22.7% increase from 2024.
Some experts have become concerned with the growing trend in betting among young people. A study in 2024 detailed that bankruptcies were on the rise in states with legalized online wagering.
Add prediction market contracts to the mix. Americans can access the platforms even if they aren’t located within states with legalized sports betting. These options have not only drawn criticism from state gaming regulators but also from federal officials alleging that companies like Kalshi and Polymarket lack consumer protections.
In March, a Republican senator filed a bill prohibiting companies like Kalshi and Polymarket from offering sports markets and similar markets that resemble gambling. A former Trump administration official said in the same month that prediction markets are a form of gambling.
