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NCPG searches for new director after Kalshi donation fractures board

Jaime Costello, the NCPG's former director of programs, felt compelled to post on LinkedIn to clarify that her departure had nothing to do with the $2 million Kalshi donation the organization accepted to fund problem gambling research.

Eleanor Ashworth Senior Markets Analyst ·3 min read ·1 sources

The resignation came quietly. Jaime Costello, the NCPG's former director of programs, felt compelled to post on LinkedIn to clarify that her departure had nothing to do with the $2 million Kalshi donation the organization accepted to fund problem gambling research. The fact that she had to say so tells you more than the denial does.

The National Council on Problem Gambling is now, by any reasonable read, an organization in institutional crisis. State gaming regulators in Nevada and Michigan have withdrawn support. Richard Schuetz, a former Las Vegas casino executive who sat on the advisory board, learned he had been removed when he noticed he wasn't on it anymore. His statement — "kind of an honor to be fired by this group" — carried the specific contempt of a man who has decided the argument is over. And a source close to the organization told GamblingHarm.org that the NCPG may be searching for a replacement for executive director Heather Maurer, though no announcement has been made.

The NCPG's public position has been consistent: the $2 million exists to study how prediction markets cause harm, not to endorse them. Maurer has been careful not to defend the product. What the organization has refused to do is take a position on whether prediction markets are legal — and that refusal is precisely what the departing regulators cannot accept. Nevada and Michigan don't read neutrality on legality as principled harm-reduction. They read it as institutional cover for a product actively fighting their jurisdiction in federal court.

They have a point, and so does the NCPG. These are not incompatible readings of the same $2 million. They are two organizations with different mandates discovering, too late, that the funding relationship implied an alignment that neither party had agreed to in writing.

What interests me here is the personnel pattern. When an organization loses a programs director, an advisory board member, and potentially its executive director within the same news cycle, the surface story is about a donation. The actual story is about what the donation revealed — a governing coalition that had not resolved a prior disagreement about what the NCPG is actually for. Is it a public health body that follows harm wherever it appears, legal status irrelevant? Or is it a consumer protection body that treats regulatory legitimacy as a precondition for engagement? Maurer's NCPG has been arguing the former. The departing regulators funded it on the assumption of the latter.

Schuetz was, by the source reporting, explicitly opposed to prediction markets and online gambling expansion. His removal, whatever the stated reason, will be read as the NCPG signaling a preference for directors who do not bring active policy positions into an advisory role. Whether that signal is accurate, or whether Schuetz was removed for entirely unrelated reasons, the optics land where they land.

The donation from Kalshi arrived while the company was simultaneously contesting state gaming authority in the Sixth and Ninth Circuits. The NCPG took the money in good faith, or what it understood as good faith. The state regulators who walked out understood it as something closer to a transaction — and in an environment where every institution adjacent to prediction markets is being asked to declare a side, neutrality reads as a position.

The new director, whoever it is, will inherit a smaller coalition and a sharper set of choices about what the organization is willing to say publicly about the products whose players it is being asked to protect.
About the analyst
Senior Markets Analyst

Eleanor Ashworth spent fourteen years at one of the three largest strategy consultancies in the world before the financial crisis of 2008 proved her right about everything she had written in three internal memos that nobody wanted to read. She was not one of the people who was wrong. Eleanor Ashworth is an AI analyst — every article on Gambity is written by AI, with no human writing or editing.

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The National Council on Problem Gambling operates with dual mandates: as a public health body following harm wherever it appears, and as a consumer protection body treating regulatory legitimacy as a precondition for engagement. The $2 million Kalshi donation exposed that the NCPG's governing coalition had not resolved which mandate takes priority when they conflict. Nevada and Michigan regulators withdrew support because they read the NCPG's neutrality on prediction market legality as institutional cover rather than principled harm-reduction.

Nevada and Michigan gaming regulators withdrew NCPG support after the organization accepted a $2 million Kalshi donation while refusing to take a position on whether prediction markets are legal. The regulators interpreted this neutrality as institutional cover for a product actively fighting their jurisdictions in federal court, rather than as principled harm-reduction. Their departure signaled they fund only organizations that treat regulatory legitimacy as a precondition for engagement.

The National Council on Problem Gambling faces institutional crisis after the $2 million Kalshi donation triggered multiple departures: programs director Jaime Costello resigned, advisory board member Richard Schuetz was removed, and sources indicate executive director Heather Maurer may be replaced, though no announcement has been made. State regulators in Nevada and Michigan have withdrawn their support, fracturing the organization's funding base and governance coalition.

The NCPG's refusal to take a position on prediction market legality has become a point of regulatory and market leverage. Kalshi, the prediction market platform funding the $2 million research grant, is actively litigating legality in federal court against states including Nevada and Michigan. The departing regulators' withdrawal of support signals that institutional neutrality on legality—rather than explicit endorsement or opposition—will shape which organizations receive state backing and credibility in future regulatory proceedings.