The National Council on Problem Gambling (NCPG) has stated its commitment to mitigating the gambling-related harm associated with prediction markets. Its acceptance of Kalshi as a member has led to an increasing number of exits from the organization and calls on leaders to resign.
On Tuesday, the NCPG released an official statement from Board President Derek Longmeier. At first glance, it appears to be a toughening stance on the prediction market industry.
“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,” Longmeier stated.
The NCPG called on prediction markets to promote gambling helpline services in February this year. But, behind the message that it is working to reduce harm caused by prediction markets is an acceptance of the industry that does not sit well with many.
Director of Programs Resigns
On the same day it put out the statement, Jaime Costello, Director of Programs at the NCPG, resigned. In a LinkedIn statement, she wrote, “I made this decision because, over the past year, the environment shifted in ways I could no longer reconcile with how I believe this work should be done.”
Costello did not explicitly cite the NCPG’s willingness to accept prediction market operators as members, but the shift in the environment she mentions suggests this may have been the reason for her departure.
Commenters praised Costello’s principled commitment to tackling gambling harm and said the NCPG was losing a talented employee.
ECPG Quits Over Handling of Kalshi
Costello’s exit follows several member organizations’ departures from the NCPG. Last week, Evergreen Council on Problem Gambling (ECPG) ended its 35-year affiliation with the group.
In an 8-page letter, ECPG explicitly stated it was quitting because of the manner in which the NCPG had embraced Kalshi as a member. Kalshi pledged a $2 million, two-year investment to the NCPG when joining in May this year.
“While NCPG’s recent acceptance of funding from Kalshi without prior review and approval from the NCPG Board of Directors initially raised significant concerns regarding potential damage to the organizational credibility of NCPG and its affiliates, NCPG’s responses to the concerns of its affiliates and other stakeholders have caused us to question whether NCPG continues to operate with the best interests of its affiliates and stakeholders in mind and if the respective missions of NCPG and ECPG remain in alignment. We have concluded they do not,” the letter stated.
ECPG was founded by former NCPG President Dr. Charles Maurer. The letter states that the current executive director, Maureen Greeley, who served on the NCPG board, was not provided with a copy of the Kalshi agreement.
In June, ECPG sent a letter to the NCPG requesting more details on the deal. It said that after careful consideration of the responses, it voted to leave the organization.
State Groups Also Exit NCPG
ECPG’s exit comes after two state gambling regulators and the Nevada Council on Problem Gambling also left the NCPG in protest over Kalshi’s membership
The Ohio Casino Control Commission withdrew in June, while the Michigan Gaming Control Board announced its departure in early July. Both gambling regulators cited concerns about validating Kalshi while they and many other states are pursuing legal action against the company.
In its statement on Tuesday, the NCPG said it “is neutral on whether prediction markets should be legal.”
Recovered Gambling Addict Calls On NCPG Leaders To Resign
State authorities argue the NCPG should have a clearer position on the legality of prediction markets. Others level stronger accusations against the organization.
Louis Ruggiero, a recovered problem gambler who says he lost $10 million, now works to help others overcome addiction.
On Tuesday, he called on the leaders of the NCPG to resign in an open letter posted on LinkedIn. Ruggiero claims Longmeier and executive director Heather Maurer have lost the trust of members, evidenced by ECPG’s departure.
“I don’t write this because I want the NCPG to fail. The opposite. This field desperately needs a national council worth trusting. Sports betting is in every pocket in America. Prediction markets are exploding. Kids are being groomed into wagering before they can drive. The people fighting this disease have never needed a strong, independent, credible NCPG more than they do right now. And right now, they don’t have one,” Ruggiero stated in his letter.
Donor Engagement Not Endorsement, Says NCPG
“We have always been transparent that we are a donor-supported organization, fully auditable given our nonprofit status,” NCPG said in Tuesday’s statement.
“Many of our members and donors are gambling operators. This allows us to go where the harm is, despite the lack of federal funding. Donor engagement does not mean endorsement. Membership, funding or collaboration does not give any person or organization control over NCPG’s research, advocacy, policy positions, or public statements,” it added.
