Three State Regulators Withdraw from Problem Gambling Council Over Kalshi Membership
Ohio, Michigan, and Nevada cut ties with NCPG, citing concerns over prediction market operator's inclusion.
1Regulatory exodus begins
The Ohio Casino Control Commission became the first to quietly withdraw from the National Council on Problem Gambling in June 2026, though its exit wasn't publicly known until Massachusetts discussed it. Michigan followed in July as the first public departure, with Nevada withdrawing in August. All three cited Kalshi's NCPG membership as the reason, creating a clear pattern of regulatory discontent with the council's decision to include the prediction market operator.
2The $2 million membership
Kalshi joined NCPG in May 2026 through a new Financial Services & Trading subcategory after committing $2 million over two years. This platinum-tier membership - the council's highest level - became the flashpoint for regulators. Ohio's interim director Andromeda Morrison directly cited this membership as justification for withdrawal, arguing it legitimized what she considered an illegal sportsbook operator undermining Ohio's gambling enforcement efforts.
3Consumer confusion concerns
Regulators framed their objections around potential consumer confusion about whether prediction markets like Kalshi offer the same protections as licensed sportsbooks. Ohio's Morrison argued NCPG's association with Kalshi blurred this critical distinction. The concern comes amid broader scrutiny of Kalshi's consumer practices, including questions about transparency regarding trading losses on its platform.
4Michigan's legal objection
Michigan Gaming Control Board's Henry Williams pointed to Kalshi's litigation against states as evidence the company was circumventing consumer protections built into sports-betting regulations. This legal conflict made Kalshi's NCPG membership untenable for Michigan, marking the first public regulator withdrawal in July. The move set a precedent that Ohio and Nevada would soon follow.
5Massachusetts stays - for now
The Massachusetts Gaming Commission voted 5-0 to remain with NCPG after reviewing other states' withdrawals, though commissioners expressed reservations. Chair Jordan Maynard warned the council was 'on notice,' while Commissioner Eileen O'Brien said they'd monitor the situation closely. The vote wasn't an endorsement but a temporary position, with membership renewal likely to revisit the issue.
6Creating a new membership class
Ohio's withdrawal letter revealed NCPG appeared poised to create a new membership category specifically for prediction-market companies. This potential expansion beyond Kalshi particularly alarmed regulators, suggesting the council might further legitimize an industry many states view as operating without proper licensing or consumer protections.
7Broader gambling recognition context
The dispute occurs amid national efforts to formalize problem gambling recognition and treatment, including Illinois recently classifying gambling disorder as a behavioral health condition. Regulators see their NCPG withdrawals as protecting hard-won consumer safeguards against what they view as an encroachment by unregulated prediction markets.
8What comes next
Massachusetts plans continued evaluation rather than considering the matter closed. NCPG has lost three state regulatory members in three months, with Massachusetts potentially following if concerns persist. The rapid succession of withdrawals suggests Kalshi's membership has become a lasting liability for NCPG's regulator relationships rather than a temporary controversy.