Kalshi has become the first prediction markets platform to join the National Council on Problem Gambling (NCPG), pledging $2m to “support a strategic initiative focused on trader health and safety”.
The company has always been at pains to insist it is not a ‘gambling’ operator and, to this end, the NCPG has created a new membership category, covering ‘financial services & trading’, to allow Kalshi to join.
Using Kalshi’s funds, which will be given over a two-year period, the NCPG will launch a “financial trader health and safety initiative” with the aim of increasing awareness of responsible trading across financial markets.
As part of the agreement, Kalshi will join the organisation’s ‘Leadership Circle’.
Heather Maurer, executive director of NCPG, said: “NCPG’s goal has always been to mitigate harm by increasing education, awareness and understanding of risky behaviours, while ensuring access to trusted, scientific and evidence-based information and healthcare resources.
“Innovation and responsibility can and must evolve together. Kalshi’s engagement demonstrates a commitment to mitigating harm before it occurs and ensuring support resources are accessible when they are needed.”
Co-founder and CEO of Kalshi Tarek Mansour added: “At Kalshi, we believe in the power of prediction markets, and we are sensitive to the fact that they, like any financial trading products, come with risks.
“As prediction markets continue to evolve, we are deeply committed to setting a new standard for responsible trading by investing in the tools, education and protections needed to promote healthy participation and customer safety and hope that over time all trading platforms with significant retail participation follow suit.”
Kalshi’s move to join the NPCG comes amid a series of legal claims from state regulators who argue prediction markets are indistinguishable from betting from the point of user interaction.
Ohio is currently attempting to extract a $5m fine from Kalshi for its alleged offering of unlicensed sports betting, and Arizona is pursuing criminal charges against the exchange for the same reason.
Last week, Kalshi appointed ex-Patomak partner Sudhir Jain as its new chief compliance officer and head of regulatory affairs.
And earlier in May, the platform reached a $22bn valuation, larger than the market caps of both Flutter and DraftKings.
The valuation came after a $1bn funding round led by Coatue Management, which Kalshi said it would use to ramp up adoption among institutional investors.
The post Kalshi signs up to gambling-related harm organisation first appeared on EGR Intel.
Prediction markets platform pledges $2m to National Council on Problem Gambling, funding education on welfare risks
The post Kalshi signs up to gambling-related harm organisation first appeared on EGR Intel.