<\/p>\n
Karshi, a prediction market that claims not to be a gambling platform, has announced plans to donate $2 million to the National Council on Problem Gambling (NCPG), which continues to ride the nationwide surge.<\/p>\n
While prediction markets allow users to bet on or “trade” on nearly any outcome, from elections to sports to geopolitical events, the industry has fiercely fought efforts by state regulators to regulate the platforms in the same way as those of traditional gambling giants.<\/p>\n
The company said in February that “Kalsi does not function like a casino or sportsbook” and claimed that its platform “works like any other derivatives market.”<\/p>\n The $2 million investment over two years will support “strategic initiatives focused on trader health and safety,” NCPG announced in a news release Monday.<\/p>\n “NCPG’s role is not to determine whether a particular product or platform meets the legal definition of gambling,” said Cole Wogoman, NCPG’s director of policy and partnerships. \u201cOur responsibility is to understand where risky behaviors are occurring and ensure people have access to education, prevention resources and support to help reduce harm.\u201d<\/p>\n As part of the partnership, the organization, which is primarily funded by the gambling industry, has created a new membership subcategory for “financial services and trading” businesses.<\/p>\n Kalsi joins as a “platinum-level member,” becoming the first company in a subcategory that the nonprofit describes as “the financial industry’s clear commitment to long-term customer safety.”<\/p>\n NCPG’s other “platinum members” include casino operators such as MGM Resorts International, gambling companies such as DraftKings and FanDuel, and sports leagues such as the NBA, MLB, and NFL.<\/p>\n In addition to a years-long gambling boom sparked by the widespread legalization of sports betting across the United States since 2018, the proliferation of prediction markets has raised concerns about social consequences such as addiction.<\/p>\n Prediction markets allow users to \u201ctrade\u201d on the outcome of events, from elections to award ceremonies. These platforms operate widely across the United States, including states where traditional forms of gambling have long been banned.<\/p>\n Prediction market operators such as Calci and Polymarket argue that they are financial exchanges, not gambling operators, and are therefore governed by federal commodity law rather than state gambling regulations.<\/p>\n The distinction has become the subject of intense legal and political battles, with a growing number of state officials across the country arguing that prediction markets are just another name for gambling and a violation of state power.<\/p>\n During that time, the industry has rapidly expanded and its popularity has skyrocketed in recent years. <\/strong>More than $1 billion was traded on Calci this year on Super Bowl Sunday.<\/p>\n In an announcement Monday, the NCPG said its new Financial Trader Health and Safety Initiative will “expand education and awareness about responsible trading” across financial markets “through the development of practical, evidence-based, data-driven resources designed to keep pace with rapidly evolving platforms.”<\/p>\n The group said the initiative came amid broader public debate around the intersection of “emerging platforms and consumer protection, behavioral health, and economic health,” and said the NCPG believes “cross-sector collaboration will become increasingly important as markets continue to evolve.”<\/p>\n \u201cAs financial trading platforms, prediction markets and other retail participation products continue to evolve, we believe it is important to engage across sectors to foster informed participation and consumer awareness,\u201d Wogoman said. \u201cThat engagement does not endorse any particular platform or legal framework.\u201d<\/p>\n Karsi co-founder and CEO Tarek Mansour said on Monday that the company recognizes that prediction markets “come with risks, just like any other financial trading product.”<\/p>\n \u201cAs prediction markets continue to evolve, we are deeply committed to setting new standards for responsible trading by investing in the tools, education and protections necessary to foster healthy participation and customer safety, and we hope that all trading platforms with large numbers of individuals will follow suit over time,\u201d he added.<\/p>\n “Financial markets are fundamentally different from casinos and sportsbooks, but there are still risks,” Kalsi added in a social media post on Monday. “Financial markets in which many individuals participate are subject to risks.”<\/p>\n<\/div>\n #Prediction #market #Kalsi #donates #million #problem #gambling #groups #fight #gambling #label<\/p>\n","protected":false},"excerpt":{"rendered":" Karshi, a prediction market that claims not to be a gambling platform, has announced plans to donate $2 million to the National Council on Problem Gambling (NCPG), which continues to ride the nationwide surge. While prediction markets allow users to bet on or “trade” on nearly any outcome, from elections to sports to geopolitical events, … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[1002,1004,529,169,1001,1005,1000,551,999,1003],"class_list":["post-568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-donates","tag-fight","tag-gambling","tag-groups","tag-kalsi","tag-label","tag-market","tag-million","tag-prediction","tag-problem"],"_links":{"self":[{"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/posts\/568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drouki.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=568"}],"version-history":[{"count":0,"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/posts\/568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/drouki.com\/index.php?rest_route=\/wp\/v2\/media\/569"}],"wp:attachment":[{"href":"https:\/\/drouki.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drouki.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drouki.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}