Kalshi Ghosts the BBB, Gets Spirited Off to State AGs Instead 🎩

The Better Business Bureau's National Advertising Division said Monday it is referring prediction market platform Kalshi to state Attorneys General and other regulatory authorities after the company declined to participate in a voluntary review of its social media advertising practices. The inquiry examined whether Kalshi's influencers and affiliates clearly disclosed paid relationships in promotions and whether the company adequately complied with Federal Trade Commission endorsement guidelines.

"At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising," the BBB said in a statement. Because Kalshi declined to take part, NAD said it will also notify the social media platforms where the advertising appeared. Crypto influencer John Wang, who joined Kalshi in August, was among the creators whose promotional posts were within the scope of the review, according to his posts on X.com.

Kalshi's marketing has previously drawn scrutiny from nonprofit watchdog Media Matters for America, which flagged viral campaigns on TikTok and Instagram that framed prediction trading as a "side hustle." The BBB's referral adds to the platform's existing regulatory friction, which includes user bans aimed at curbing alleged insider trading, similar to a sweep carried out by decentralized rival Polymarket.

Kalshi remains a leading centralized prediction market alongside Polymarket, and the company told Bloomberg it is on track for a $1.5 billion annualized revenue run rate. That momentum underpinned a $1 billion funding round that valued Kalshi at $22 billion. A Bernstein research note in May argued the sector is entering an "institutional" era, with analysts citing a block trade executed on Kalshi as evidence of improving liquidity.

The referral lands against the backdrop of an ongoing jurisdictional fight between state regulators and the Commodity Futures Trading Commission over event contracts, alongside continued legal challenges in states including Minnesota and Rhode Island. Despite those headwinds, Bernstein analysts wrote, "We believe the introduction of block trading and bespoke contracts could expand participation from institutional investors seeking targeted exposure to event risks."