Minnesota state Senator John Marty has asked the National Council on Problem Gambling to end its “unholy alliance” with Kalshi, claiming it undercuts the NCPG’s mission.
“No amount of money is worth undermining your mission,” Marty wrote in a letter dated July 28 to NCPG Executive Director Heather Maurer.
Marty, a member of the Democratic–Farmer–Labor party, wrote that he understood the importance of the funding the NCPG receives from the regulated gambling industry. The NCPG May 18 announced a $2 million two-year investment from Kalshi to support a “strategic initiative focused on trader health and safety.”
But Kalshi is in a “fundamentally different category, given their existence as an unauthorized and unregulated gambling business,” Marty wrote, citing a letter from Michigan Gaming Control Board Executive Director Henry Williams:
“These efforts are part of Kalshi’s broader strategy to remake the gambling industry – by bulldozing countless regulations and the consumer-protection safeguards that Michigan and other states have enacted to protect their residents and uphold the integrity of sports betting,” Williams wrote in a July 1 letter to Maurer.
Maurer said the NCPG doesn’t take a position on Kalshi’s legality. Her organization’s focus is on reducing gambling-related harm, “wherever it occurs.”
“We respect that organizations may reach different conclusions about how best to advance consumer protections, but NCPG remains committed to fulfilling our mission,” Maurer told CDC Gaming.
“The National Problem Gambling Helpline (1-800-MY-RESET) is already receiving contacts from people experiencing harm related to prediction markets.
“While legal and regulatory frameworks are debated, individuals and families are experiencing real financial, emotional, and relationship consequences today. Those seeking help shouldn’t have to wait for policy questions to be resolved before support is available.”
Marty cited a press release from the NCPG that stated Kalshi is the largest prediction market in the world, “offering financial markets on the outcome of real-world events such as award shows and more. Kalshi is the industry leader and pioneer, widely credited with legalizing prediction markets and building a safe, legal, regulated platform for millions of traders in America.”
“In that language,” Marty wrote, “note that even though sports betting is the bulk of Kalshi’s business (as much as 85%-90%), this NCPG tagline for Kalshi doesn’t even mention sports betting.”
Marty also accused the NCPG of allowing Kalshi to make “outrageous statements,” saying that Kalshi has stated it is widely credited with legalizing prediction markets and “building a safe, legal, regulated platform.”
“Claiming something is legal doesn’t mean it is legal and certainly does not mean that they legalized it,” Marty wrote in the letter to Maurer. “They are suing Minnesota, when our law explicitly treats it as illegal. Many states have laws that consider Kalshi’s sports betting illegal. Contrary to the statement, instead of ‘building a safe, legal, regulated platform,’ Kalshi is opposing all state regulations, claiming federal preemption.”
But Maurer countered that the NCPG doesn’t take a position on whether purchasing event contracts should be legally classified as gambling. The NCPG’s sole motivation is ensuring that those who need care can access it.
“Our concern is that trading event contracts can carry many of the same behavioral risks associated with gambling,” Maurer said. “For that reason, these emerging products warrant the same public health attention, consumer education, and access to support as other forms of gambling.”
