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Prediction Markets, Partnerships, and Potential Pitfalls
Prediction Markets, Partnerships, and Potential Pitfalls
Evergreen Council on Problem Gambling Seeks Clarification and Expresses Concerns Over National Council on Problem Gambling/Kalshi Partnership
The growing popularity of Prediction Markets belies the problems that lie within. As a nonprofit organization committed to reducing gambling-related harms through prevention, advocacy, treatment, and responsible policy, the Evergreen Council on Problem Gambling (ECPG) has reached out to the National Council on Problem Gambling (NCPG) for clarity on its recent $2 Million contracted Partnership with Kalshi, the world’s largest prediction market by trading volume ($23.8 billion in 2025).
Below, we share an email communication sent from ECPG’s Board President on behalf of our full Board to NCPG Board Members and Executive Director on June 1, 2026. Following that is the full text of the letter RE: Questions Regarding Kalshi’s $2 Million “investment” in NCPG. The Board and Management of ECPG believe it is important to share our concerns and questions with our Associates, Partners, Constituents, and Stakeholders. We welcome your thoughts, comments, and questions as our Council continues to seek answers and determine the best course forward. We have requested time to meet with NCPG Executive Director later this month for further clarification as these concerns have not been fully addressed.
Full Letter from ECPG Board to NCPG Board
The Evergreen Council on Problem Gambling recognizes the dynamic nature of our field and that Gambling is subject to changing laws, political priorities, and market innovations. As this dynamic continues to shift, our Council remains neutral on expansion of legalized gambling, and advocates strongly for ensuring strong consumer protections are in place, services are available, and illegal gambling continues to be banned. It falls most often to coalitions of collaborative nonprofit human services organizations, strong tribal and state programs, and community-based agencies to ensure programs and services to support those impacted by gambling harms are not only in place, but are robust and continually growing to meet the needs of individuals, families, and communities. This is at the heart of the Mission that guides our Council’s work now and in the future.
Please take a few minutes to share your thoughts and concerns about prediction markets through this anonymous survey.
Regulation Riddle
Who Regulates Prediction Markets and How?
As a Prediction market, Kalshi is regulated by the federal Commodity Futures Trading Commission, which has allowed it to operate even in states where online gambling is illegal. Prediction markets are allowed to operate outside the state and tribal gaming laws adopted for legalized gambling. The Washington State Gambling Commission (WSGC) has issued clear guidance that prediction markets — online platforms offering event-based contracts for purchase — are not authorized in Washington State. This applies to both operators and participants
Furthermore, many individuals and organizations are concerned that consumer protections required for legal gambling are missing from prediction markets. States’ rights, tribal sovereignty rights, and Indian Gaming Regulatory Act requirements around regulating gambling are ignored.
For more information on how Prediction Markets impact Tribal Gaming in Washington and policy considerations, visit the Washington Indian Gaming Association at: Event Contracts – Washington Indian Gaming Association
For more information on the Washington State Gambling Commission’s guidance around Prediction Markets, go to: Prediction Markets | Washington State Gambling Commission
Washington State Attorney General Legal Position
On March 27, 2026, Washington State Attorney General Nick Brown filed a complaint targeting Kalshi, a New York-based operator accused of offering illegal gambling in the state. Brown argues that Kalshi violates the Washington State Gambling Act and Consumer Protection Act, indicating that the label “prediction market” does not change the fact that Kalshi’s platform structure and payouts mirror sportsbooks and other gambling operations that are considered illegal outside of specific tribal provisions.
While Kalshi claims it does not offer gambling products, it consistently promotes that individuals can “bet on anything,” and more than 90% of the activity on their platform and 89% of its revenue last year was from sports betting. (Spokesman Review, March 27, 2026)
For more information on the complaint filed by the Washington State Attorney General’s Office, go to: Washington sues online betting platform Kalshi for illegal gambling | Washington State
Direct all questions or media inquiries to: info@evergreencpg.org
