The Better Business Bureau’s National Advertising Division (NAD) has referred prediction market platform Kalshi to regulatory authorities after the company declined to participate in a voluntary review of its influencer advertising practices. The inquiry focused on whether material connections between Kalshi and its paid influencers were clearly disclosed, and whether the firm followed Federal Trade Commission (FTC) endorsement guidelines.
NAD announced the referral on Monday, stating it would notify relevant state Attorneys General and the social media platforms where the promotions appeared. “At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising,” the self-regulatory body said. Separately, media watchdog Media Matters for America has scrutinized Kalshi’s TikTok and Instagram campaigns, noting that some content framed prediction trading as a potential “side hustle,” which could blur the line between financial risk-taking and income generation for younger audiences.
The regulatory pressure arrives alongside aggressive crypto product expansion. A day after the BBB announcement, Kalshi revealed it had filed with the U.S. Commodity Futures Trading Commission (CFTC) to list perpetual futures tied to Hyperliquid’s HYPE token. This follows the recent launch of Ethereum perpetual futures under its “American Perpetuals” brand, complementing earlier Bitcoin perpetual futures. Several additional cryptocurrency contracts—including XRP, Solana, Dogecoin, Stellar, Shiba Inu, and Hedera—remain under separate regulatory review.
Kalshi’s growth remains strong: a company spokesperson told Bloomberg the platform is tracking toward a $1.5 billion annualized revenue run rate, supporting a $1 billion funding round that valued the company at $22 billion. Institutional interest is also rising, with Bernstein analysts noting that block trading and bespoke contracts could attract more sophisticated participants. However, the advertising referral widens the regulatory lens on Kalshi, adding marketing compliance to existing debates over event-contract jurisdiction and market integrity.
