Prediction market Kalshi has officially joined the National Council on Problem Gambling (NCPG), despite the up-and-coming prediction markets being classified as trading, not gambling, by the Commodity Futures Trading Commission (CFTC).
However, rather than being an about-turn on the federal position of these platforms, Kalshi has joined as the first member of the Financial Services & Trading Subcategory.
The National Council on Problem Gambling
The National Council on Problem Gambling (NCPG), founded in 1972, has the stated goal of seeking to "minimize the economic and social costs associated with gambling addiction."
As well as running the National Problem Gambling Helpline, the not-for-profit group operates a directory of qualified counsellors and helps drive industry standards to manage player protection.
They work closely with companies in the gambling sector and have expanded their remit to include financial markets.
Announcing Kalshi's membership, an NCPG statement reads: "In the last decade, financial markets have dramatically expanded in scope and diversity of participation, with retail traders becoming a growing participant in old and novel markets, including equities market trading, stock, index, and commodity options, cryptocurrencies, levered commodity futures, prediction markets, and other products."
Although prediction markets have existed for years, online platforms gained popularity in 2024.
Polymarket and Kalshi effectively predicted a Donald Trump victory in the US election, despite well-known, highly respected pollsters predicting the opposite. The election also saw billions of dollars of trading on the same platforms.
And in the same year, a court decision saw Kalshi's markets deemed event contracts rather than sports betting.
Prediction markets' classification as event contracts enables traders to take positions on sports, political, and other events, even in states where betting is prohibited. Many state lawmakers and groups oppose that position, however, claiming the markets are blatantly another form of betting.
Kalshi's ongoing growth in the prediction markets space
Kalshi is the world's largest regulated prediction market. It saw more than $1B traded during the Super Bowl alone and has an annualized trading volume of $178B. It is valued at more than $22B.
The New York-based company has committed $2M to the NCPG's initiatives as part of a two-year investment plan. The money will be used to improve health and safety initiatives and to drive responsible trading programs.
Its platinum membership also sees Kalshi join the NCPG's Leadership Circle, which recognizes the size of its investment. Other Leadership Circle members include Caesars, FanDuel, Bally's and DraftKings.
Tarek Mansour, Kalshi CEO and Co-Founder, said: "As prediction markets continue to evolve, we are deeply committed to setting a new standard for responsible trading by investing in the tools, education, and protections needed to promote healthy participation and customer safety and hope that over time all trading platforms with significant retail participation follow suit."
Other popular platforms include Polymarket, which is an on-chain platform, as well as Opinion Labs and Robinhood.
Major sports betting companies like DraftKings and FanDuel have launched their own platforms, and there is speculation that bet365 might be considering a similar move into the burgeoning market, having exited the American Gaming Association in recent weeks.
