The Massachusetts Gaming Commission is going its own way. Per reports, it will not be following other states that have exited the National Council on Problem Gambling (NCPG) due to ties with top prediction market platform Kalshi.
Regulators of the state called a unanimous vote on September 10th, deciding to maintain the commission’s membership in the NCPG. This followed concerns over the organization’s relationship with Kalshi. The decision sets up an awkward stance, as Massachusetts continues to fight Kalshi over its sport event contracts, but will remain in allegiance with an organization that Kalshi paid $2 million.
MA Gaming Commission Stays with the NCPG
During their recent vote, the Massachusetts Gaming Commission weighed whether or not the National Council of Problem Gambling’s paid affiliation with Kalshi warranted an exit.
At this time, the state holds a Silver-level membership with the NCPG, costing $2,500 for 2026. MGC chairman Jordan Maynard indicated that while the Gaming Commission opted to stay put for now, future discussions could end up sparking change.
Massachusetts's decision goes against other states like Michigan, which withdrew from the National Council of Problem Gambling this past July. Ohio and Nevada are two other states that have also publicly distanced themself from the NCPG after their ties to Kalshi were made known.
Commissioners have suggested that there are ongoing concerns about the dynamics between prediction markets, responsible gambling institutions, and state gaming regulation. While some states are preemptively detaching from the situation, Massachusetts is one state that isn’t budging.
Why Kalshi’s NCPC Relationship Draws Scrutiny
May’s two-year, $2 million pact between Kalshi and the NCPG is what is in question here. The funding sees Kalshi backing an initiative dedicated toward trader health and safety. In addition, the prediction market platform became the first member of the brand new Financial Services & Trading category, joining at the Platinum level.
To this point, the NCPG has denied the notion that accepting Kalshi’s funding amounted to a full endorsement of the company. Instead, the National Council on Problem Gambling has maintained a neutral stance on the legality of prediction markets.
At the same time, officials have acknowledged that the purchase and sale of event-based contracts may present risks similar to traditional gambling. They’ve also admitted that this can also lead to problem gambling related stemming from impulsive behavior and potentially leading to financial harm.
Prediction Markets Create an Awkward Regulatory Scene
The elephant in the room is the unusual dynamic this partnership creates. On one hand, the NCPG exists to help mitigate financial hardship produced by problem gambling. On the other, it is clearly accepting funding from a company that could potentially benefit from it.
It gets even weirder when looking at Massachusetts. Attorney General Andre Joy Campbell previously sued Kalshi over its sporting event contracts, stating that the prediction market site should comply with Massachusetts sports gaming laws like other gambling sites.
Of course, a preliminary injunction was granted back in January, which kept Kalshi from accepting sports-centric contracts in the state. The prediction market site still hasn’t caved and agreed to a Massachusetts sports betting license, paving the way for the current situation.
The Trade Handle Prediction Markets Take
There is a clear disconnect here, as the state, organization, and company involved can’t have it both ways. That’s precisely what is happening for the moment, though, as Massachusetts is fighting Kalshi, Kalshi is backing the NCPG, and the NCPG is simply setting up base somewhere in the middle.
The moral of the story is that money talks, while Kalshi’s funding of the NCPG at least suggests the prediction market site is dedicated to safe trades. Massachusetts is separating the two issues for the moment, but long-term, the blurred lines of legality and regulation will need to be ironed out.