Kalshi has been referred to regulatory authorities after declining to take part in a National Advertising Division inquiry into its influencer and affiliate advertising. The referral adds another compliance problem for the prediction market platform while regulators continue reviewing event contracts and sports-related products.
The National Advertising Division is part of BBB National Programs and will refer Kalshi to relevant authorities, including state attorneys general. The inquiry reviewed whether Kalshi’s social media promotions clearly showed paid relationships with influencers and affiliates.
NAD review focused on disclosure rules
The inquiry examined whether sponsored posts and affiliate promotions made the commercial relationship clear to users. Influencer advertising rules generally require paid endorsements to be obvious, so consumers can tell when content is promotional.
Kalshi did not participate in the NAD process. That led the self-regulatory body to refer the matter to outside authorities. The referral does not prove wrongdoing on its own. It moves the issue to regulators that can review the conduct and decide whether enforcement action is needed.
Influencer marketing has become a growth tool
Prediction market platforms have leaned heavily on social media creators to reach retail users. Influencers can explain contracts, promote trading ideas and push platform links to audiences that may not follow financial or betting products.
That strategy also creates risk. If paid content is not clearly labelled, users may view a promotion as an independent opinion rather than advertising.
The issue is more sensitive for prediction markets because the products sit between trading, gambling and event speculation. Promotions can reach younger users and sports fans, especially when markets involve elections, pop culture or major games.
Kalshi faces wider regulatory scrutiny
Kalshi is also under pressure from state gambling regulators over sports event contracts. Several states have argued that contracts tied to game outcomes look like unlicensed sports betting.
Kalshi has argued that its contracts are federally regulated financial products. That legal position has created clashes between state gambling authorities and federal commodities oversight.
Advertising now creates another issue in that dispute. Even if a platform argues its products are not gambling, its marketing can still be reviewed under consumer protection and advertising disclosure rules.
FTC guidance covers paid endorsements
US endorsement guidance requires influencers to disclose material connections when they promote a product or service. Disclosures must be clear and placed where users can see them before they act on the recommendation.
For prediction markets, that means affiliate links, paid posts and platform partnerships need clear labels. The Kalshi referral puts more focus on how event trading platforms use creators while their regulatory status remains under review.
