Claiming that their missions are no longer “aligned,” the Nevada Council on Problem Gambling plans to disassociate itself from the National Council on Problem Gambling (NCPG) over prediction markets, according to the Nevada Current.
Key Takeaways
- The Nevada council executive director says the NCPG is undermining the state organization’s efforts to prevent gambling harm.
- Both sides discussed concerns over the NCPG’s agreement with Kalshi for multiple months.
- The Nevada Council wanted to pause its membership but was told that wasn’t an option.
The Nevada council's executive director, Trey Delap, said the national council is undermining problem gambling prevention, treatment, and responsible gambling through its relationship with popular prediction market operator Kalshi, which invested $2 million into the organization earlier this year.
The Nevada council has worked directly with the NCPG to address the age requirements used by prediction market operators such as Kalshi, which is banned from offering contracts in the Silver State.
Sports bettors in most legal betting states must be 21 to create an account, but many prediction market platforms allow customers as young as 18 to trade contracts despite the NCPG supporting a 21-plus rule for trading exchanges.
“Our decision is based on the elevated risk of harm to young people,” Delap said. “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.”
Enjoying Covers content? Add us as a preferred source on your Google account
Reaching a stalemate
The two sides have not reached an agreement, leaving the Nevada Council to distance itself from the NCPG, joining other states and organizations that have made similar decisions.
The Nevada council attempted to put its membership with the national organization on hold to work on those issues, but the NCPG said that was not an option.
“After months of discussion, we’ve concluded that this is not simply a disagreement about one company,” Delp told the Nevada Current. “It reflects a fundamental difference in how we believe a problem gambling organization should respond to emerging gambling risks.”
Fighting for public health
The Silver State considers prediction market sites, which are regulated federally, to be gambling platforms. The Nevada council believes innovation in the industry is moving faster than the public-health infrastructure can keep up with. Delp says people under 21 have a harder time recognizing problem gambling harm.
“Our answer isn’t to fight yesterday’s battle,” Delp said. “It’s to build what the field needs next.”
Michigan withdrew from the NCPG in July after the state’s gaming board objected to the organization’s relationship with Kalshi.
“By partnering with a company that numerous states, including Michigan, are actively litigating against for disregarding state gaming laws, NCPG directly undermines state enforcement actions and risks weakening the positions of state regulatory bodies nationwide,” Michigan Gaming Board executive director Henry Miller said.
Kalshi’s investment includes a trader health and safety initiative, and the NCPG said it would focus on responsible trading.
“Innovation and responsibility can and must evolve together,” NCPG executive director Heather L. Maurer said. "Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”
Legal battles
Prediction market operators such as Kalshi, Polymarket, and Crypto.com are facing litigation in more than a dozen U.S. states, primarily in jurisdictions like Nevada that offer legal, regulated sports betting. The Nevada council filed amicus briefs in favor of the state in the lawsuit against Kalshi.
Much of the fight is over prediction markets offering sports event contracts, or “swaps,” and what constitutes betting and the types of regulation that are in place in states like Nevada that differ from what the federal agency Commodity Futures Trading Commission requires.
While the courts ultimately will decide whether the contracts constitute gambling, Nevada has required Kalshi to geofence the state or face daily fines of $120,000.
