{"id":448231,"date":"2026-05-18T20:04:08","date_gmt":"2026-05-18T20:04:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/448231\/"},"modified":"2026-05-18T20:04:08","modified_gmt":"2026-05-18T20:04:08","slug":"prediction-market-kalshi-to-give-2m-to-problem-gambling-group-as-it-fights-gambling-label-us-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/448231\/","title":{"rendered":"Prediction market Kalshi to give $2m to problem gambling group as it fights \u2018gambling\u2019 label | US news"},"content":{"rendered":"

The prediction market Kalshi, which maintains it is not a gambling platform, has announced plans to give $2m to the National Council on Problem Gambling<\/a> (NCPG) as it continues to ride a nationwide surge.<\/p>\n

While prediction markets allow users to bet \u2013 or \u201ctrade\u201d \u2013 on the outcome of almost anything, from elections to sports to geopolitical events, the industry has vehemently fought efforts by state officials to regulate its platforms like those of conventional gambling giants.<\/p>\n

\u201cKalshi doesn\u2019t work like casinos or sportsbooks,\u201d the firm said in February, claiming that its platform \u201coperates like any other derivatives market\u201d.<\/p>\n

The $2m two-year investment will support \u201ca strategic initiative focused on trader health and safety\u201d, the NCPG announced in a news release<\/a> on Monday.<\/p>\n

\u201cNCPG\u2019s role is not to determine whether a particular product or platform meets a legal definition of gambling,\u201d Cole Wogoman, director of policy and partnerships at the NCPG, said. \u201cOur responsibility is to understand where risky behaviors are emerging and ensure people have access to education, prevention resources, and support so we can help mitigate harm.\u201d<\/p>\n

As part of the partnership, the organization \u2013 which is largely funded<\/a> by the gambling industry \u2013 has created a new membership subcategory for \u201cFinancial Services & Trading\u201d firms.<\/p>\n

Kalshi will join as a \u201cPlatinum-level member\u201d, and will become the first company in the subcategory, which the non-profit described as \u201ca defining commitment to long-term customer safety from the financial sector\u201d.<\/p>\n

Other \u201cPlatinum members\u201d<\/a> of the NCPG include casino operators like MGM Resorts International, betting companies such as DraftKings and FanDuel, and sports leagues including the NBA, MLB and NFL.<\/p>\n

The surge of prediction markets, alongside a years-long betting boom sparked by the widespread legalization of sports betting across the US since 2018, has fuelled concerns<\/a> around societal impacts, including addiction.<\/p>\n

Prediction markets allow users to \u201ctrade\u201d on the outcomes of events, from elections to award shows. The platforms operate widely across the US, including in states where conventional forms of gambling have long been<\/a> banned.<\/p>\n

Operators of prediction markets, like Kalshi and Polymarket, contend that they are financial exchanges, not gambling operators, and are thus governed by federal commodities law, rather than state gambling rules.<\/p>\n

That distinction has become the subject of mounting legal and political battles, with an increasing number <\/a>of state officials across the country arguing that prediction markets<\/a> are simply gambling by another name, and an encroachment on state authority.<\/p>\n

In the meantime, the industry has expanded rapidly and surged in popularity in recent years. More than $1bn<\/a> was traded on Kalshi during this year\u2019s Super Bowl Sunday.<\/p>\n

In its announcement on Monday, the NCPG said that its new \u201cFinancial Trader Health and Safety Initiative\u201d will \u201cexpand education and awareness of responsible trading\u201d across financial markets, \u201cthrough the development of practical, evidence-informed, and data-driven resources designed to keep pace with rapidly evolving platforms\u201d.<\/p>\n

The organization said that the effort comes amid broad public discussion around the intersection of \u201cemerging platforms and consumer protection, behavioral health, and financial wellbeing\u201d and said that the NCPG believes \u201ccross-sector collaboration will be increasingly important as markets continue to evolve\u201d.<\/p>\n

\u201cAs financial trading platforms, prediction markets, and other retail participation products continue to evolve, we believe it is important to engage across sectors to promote informed participation and consumer awareness,\u201d said Wogoman. \u201cThat engagement does not represent an endorsement of any particular platform or legal framework.\u201d<\/p>\n

Tarek Mansour, Kalshi\u2019s co-founder and CEO, said on Monday that the company recognizes that prediction markets \u201clike any financial trading products, come with risks\u201d.<\/p>\n

\u201cAs 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,\u201d he added.<\/p>\n

In a social media post on Monday, Kalshi added<\/a> that \u201cwhile financial markets are fundamentally different from casinos and sportsbooks, there is still risk\u201d. \u201cNo financial market with large retail participation is immune to risk.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The prediction market Kalshi, which maintains it is not a gambling platform, has announced plans to give $2m…\n","protected":false},"author":2,"featured_media":448232,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[163,85,46,522,523],"class_list":["post-448231","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mental-health","tag-health","tag-il","tag-israel","tag-mental-health","tag-mentalhealth"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/448231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=448231"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/448231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/448232"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=448231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=448231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=448231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}