BBB Refers Kalshi to Authorities Over Influencer Ads

Dr. Annelies De Vos · 2026-06-10

The Better Business Bureau's National Advertising Division (NAD) has officially referred Kalshi Inc., a major U.S. prediction market platform, to state regulatory authorities. This move comes after Kalshi refused to cooperate with an inquiry into its social media advertising practices. Kalshi lets users bet on event outcomes like sports, politics, and entertainment. The NAD is concerned about whether Kalshi properly disclosed its relationships with influencers and affiliates, and whether it ensured compliance with advertising rules. ### What Happened with Kalshi? Kalshi is a prediction market where people can trade on the likelihood of events happening. Think of it like a stock market for future events. The NAD started looking into Kalshi's ads after noticing potential issues. The main question: Were influencers clearly telling their followers they were being paid to promote Kalshi? Without clear disclosure, those followers might think the influencers genuinely believe in the platform, not that they're just cashing a check. The NAD asked Kalshi to join the investigation, but Kalshi said no. So now the NAD is passing the case to state authorities who can take legal action if needed. ### Why Influencer Disclosure Matters Influencer marketing is huge in the U.S. People trust recommendations from their favorite online personalities. But when an influencer gets paid to promote something, that trust can be broken if the payment isn't disclosed. The Federal Trade Commission (FTC) has clear guidelines: any material connection between an influencer and a brand must be obvious. That includes things like money, free products, or other perks. Kalshi's case is a reminder that these rules apply to everyone, even fast-growing startups. - Influencers must use clear language like "ad" or "sponsored." - Disclosures should be upfront, not buried in a caption. - Brands are responsible for their partners' compliance. ### What This Means for Kalshi Users For people who use Kalshi, this referral could mean changes to how the platform advertises. If state authorities step in, Kalshi might face fines or stricter rules. But for now, nothing changes for existing users. The platform is still running, and trades are still happening. The bigger takeaway is about transparency. When you see an influencer raving about Kalshi, you need to know if they're being paid to do so. Without that knowledge, you can't make an informed decision. ### The Bigger Picture for Prediction Markets Prediction markets like Kalshi are relatively new. They let people bet on everything from election results to weather events. Because they're new, regulators are still figuring out how to handle them. This case shows that advertising rules apply just as much to these platforms as to traditional businesses. It's a wake-up call for the industry: play by the rules, or face consequences. In short, the NAD is sending a message that influencer marketing must be transparent. Kalshi's refusal to cooperate only made things worse. Now state authorities will decide what happens next. For now, it's a good reminder for all companies to keep their ads honest and clear.