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The National Council on Problem Gambling (NCPG) has been forced to address internal conflict after several board members and state affiliates walked away from the organization over its partnership with prediction market platform Kalshi.
Jaime Costello, NCPG’s Director of Programs and the person who oversaw the national gambling addiction helpline, announced her resignation earlier this week, saying the environment had shifted in ways she “could no longer reconcile with how I believe this work should be done.”
Michigan, Nevada, Ohio and Washington have also withdrawn from the council since the deal with Kalshi was struck in May.
In response, NCPG Board President Derek Longmeier released a statement stressing that while the council remains neutral on the legality of prediction markets, it is not neutral on the harm they can cause.
Longmeier calls prediction markets ‘gambling’ and highlights risks
Longmeier warned that prediction markets have quickly become mainstream, attracting millions of users, many of them young. “Regardless of how prediction markets are currently legally defined, NCPG believes it is functionally gambling and can expose consumers to many of the same risks and harms associated with traditional gambling,” he said.
He added that the speed and scale of exposure is unprecedented, and that protections are not keeping up
A Harris Poll commissioned by NCPG showed that 85% of Americans believe prediction markets can lead to unhealthy or addictive behavior, while 84% think they should be treated like gambling when it comes to consumer protections.
The council repeated that it does not take a position on whether prediction markets should be legal.
“We are not neutral on the need to prevent and reduce gambling-related harm wherever it occurs,” Longmeier stated. He explained that NCPG’s mission for more than 50 years has been to support individuals and families harmed by gambling, regardless of how regulators classify a product.
He further added that the organization intends to push for safeguards such as self‑exclusion tools, age checks, clear risk warnings and direct access to help services.
“Donor engagement does not mean endorsement”
Concerns about donor influence were also addressed. Longmeier noted that NCPG is a donor‑supported nonprofit, with many members and donors coming from gambling operators.
He stressed that “donor engagement does not mean endorsement” and that funding does not give any organization control over NCPG’s research, advocacy or public statements.
The council said it welcomes engagement from gambling companies, sports leagues, prediction platforms, regulators, policymakers and treatment professionals to build stronger consumer protections.
States still firmly against Kalshi’s inclusion, with more exits likely
The partnership between Kalshi and the National Council on Problem Gambling (NCPG), announced in May, saw the prediction market operator pledge $2 million over two years. It was also elevated to “platinum member” and entered NCPG’s Leadership Circle.
The agreement included commitments to build educational resources, promote responsible trading, and expand consumer awareness campaigns.
Despite these goals, regulators in several states have strongly opposed the partnership. Ohio’s Casino Control Commission confirmed it left the NCPG in June, citing ongoing litigation with Kalshi and a pending $5 million fine against the company.
Other states, including Michigan, Nevada and Washington, have also withdrawn, while Maryland’s Lottery and Gaming Control Agency chose not to renew its membership, according to SBC News.
Illinois officials voiced support for regulators who cut ties, and Pennsylvania’s Gaming Control Board said it respected those decisions even though it has not left itself.
Still, Longmeier believes that prediction platforms are quickly reaching young Americans. “The infrastructure to protect consumers has to move as fast as the platforms reaching them. Right now, it isn’t,” he said in the Wednesday release.
The statement closed with the council pledging to continue following the evidence, speaking openly about gambling harm and advocating for safeguards, even as internal divisions remain unresolved.
