The Nevada Council of Problem Gambling has confirmed it intends to sever ties soon with the National Council for Problem Gambling. The reason behind this decision is the latter’s partnership with Kalshi.
In a statement to Nevada Current, Nevada Council Executive Director Trey Delap noted that the ‘’council has raised its concerns directly with National’s leadership and gave them an opportunity to address them.”
Delap further noted that the scrutiny against prediction market operators “has exposed a larger problem: gambling innovation is moving faster than the public-health infrastructure designed to address it. Our answer isn’t to fight yesterday’s battle. It’s to build what the field needs next.”
He also added that other state organizations and regulators have rejected the national group for its embrace of prediction markets, and others are likely to follow suit.
The Nevada Council intended to pause its membership already in June, but the national organization declined this.
Kalshi is banned from offering sports-related event contracts in Nevada. Furthermore, the Nevada Gaming Control Board filed a lawsuit against the operator, asserting that state regulators should have jurisdiction over prediction markets.
At the beginning of the month, Kalshi suffered a legal setback in Utah after a federal judge ruled that the state has the authority to enforce its gambling laws against prediction market operators.
Meanwhile, earlier this week, the Commodity Futures Trading Commission (CFTC) exercised emergency authority over Kalshi after New York's latest legal action raised the prospect of disruption to its nationwide event-contract operations.
The CFTC ordered Kalshi to continue operating in accordance with the Commodity Exchange Act's Core Principles after the exchange notified the regulator of a market emergency.
FlightAware, a flight tracking platform, recently sued Kalshi over its decision to offer contracts tied to flight delays and cancellations at US airports
