- Kalshi partnered with the NCPG on Monday for an initiative for trader health and safety.
- Totalling $2 million, the program is meant to help educate users and raise awareness of how trading can be dangerous for some.
WASHINGTON – On Monday, May 18th, the National Council on Problem Gambling (NCPG) announced that it had reached a deal with the prediction market Kalshi for an initiative based around trader health and safety.
The deal amounts to $2 million over two years and is meant to “expand education and awareness of responsible trading across these markets through the development of practical, evidence-informed, and data-driven resources designed to keep pace with rapidly evolving platforms.”
Kalshi’s Legal Troubles
The development of this deal was almost certainly tied to legal battles that Kalshi has faced over the past year, withstanding attacks from states across the country due to concerns over legislation around prediction markets.
While it is far from a “get out of jail free card,” it buys the company some leeway as they attempt to brighten up their public image by making an effort to show that they care about the wellbeing of users. Arizona, Washington, Massachusetts, Connecticut, Illinois, and Wisconsin are amongst the states that have filed lawsuits against Kalshi.
A recent ruling against Kalshi in Wisconsin could set a precedent going forward, though that case was mostly related to sports betting on tribal lands, which is a very small minority of the country.
Prediction Market Takeover
Prediction markets like Kalshi have quickly become one of the fastest growing forms of legal sports betting sites, exceeding $20 million per month in handle across major platforms, though their revenue share is much smaller compared to traditional sportsbooks.
There has been lots of concern from legislators around prediction markets because they do not follow the same laws as sportsbooks since they are currently classified as trading / contracts, similarly to how the stock market works.
This is why awareness programs like the one that Kalshi has decided to fund can be important to educate and inform users of what they are getting into before they start putting money into contracts. In future cases against the platform, this could certainly work to their advantage.
