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Why State Regulators Are Quitting NCPG Over Kalshi's $2M Deal

October 6, 2026 · How we source this

Since the National Council on Problem Gambling accepted a two-year, $2 million Kalshi commitment in May 2026, regulators in Michigan, Ohio, Nevada and Washington have left and its executive director has resigned. Here is the timeline and what it signals for operators.

What NCPG accepted in May

In May 2026 the National Council on Problem Gambling (NCPG) announced a two-year, $2 million investment from Kalshi to support an initiative on trader health and safety. NCPG created a new membership category, Financial Services & Trading, and Kalshi joined as its first member at the Platinum level, per press reports.

NCPG is the main US advocacy body on gambling harm, and many state regulators and state councils are dues-paying members.

The exits, in order

The Michigan Gaming Control Board left in July. The Ohio Casino Control Commission followed on September 15, according to Legal Sports Report, and the Nevada Council on Problem Gambling and Washington's Evergreen Council on Problem Gambling withdrew in September. Maryland did not renew its membership, per later press summaries.

Massachusetts has stayed in for now. Its Gaming Commission said it would revisit the question when its membership comes up for renewal.

Why Ohio's exit is pointed

Ohio issued Kalshi a notice of a $5 million civil penalty in April 2026 for unlicensed sports wagering. A regulator that is pursuing a company as an unlicensed operator has a hard time sitting inside a body that company funds.

Nevada's council put the concern in terms of perception. Its executive director wrote that the partnership's scale and visibility may create confusion between harm-reduction engagement and endorsement.

Leadership fallout

NCPG Director of Programs Jaime Costello resigned, and on September 28 Executive Director Heather Maurer announced her resignation after less than a year in the role. She is reported to be staying through October 16 to support the transition.

NCPG board president Derek Longmeier said membership does not constitute an endorsement of any member's products or practices. He also acknowledged that people are experiencing real financial, emotional and relationship consequences from prediction markets.

What it means for operators

Responsible-gambling funding is becoming a contested channel, not a neutral goodwill measure. For prediction-market operators already litigating preemption against many states, money given to a harm-prevention body can be read by those states as an attempt to buy legitimacy.

The practical read for compliance teams is to separate harm-reduction commitments from any language that suggests regulatory acceptance. This is analysis of public reporting, not advice.