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BBB refers Kalshi
BBB National Programs’ National Advertising Division (NAD) said it will refer prediction market platform Kalshi to regulatory authorities, including relevant state Attorneys General, after Kalshi declined to participate in an inquiry into its social media advertising practices.
“The BBB's National Advertising Division will refer Kalshi to state attorneys general and other regulatory authorities after the prediction market platform declined to participate in an inquiry about undisclosed influencer advertising”
The NAD inquiry examined whether Kalshi’s influencers and affiliates clearly disclosed paid relationships in social media promotions and whether the company took adequate steps to comply with Federal Trade Commission endorsement guidelines, with BBB saying, "At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising."
Crypto influencer John Wang joined Kalshi in August, and the referral also triggered NAD to notify the social media platforms where the advertising appeared.
A Kalshi spokesperson told Bloomberg that the company is on track for a $1.5 billion annualized revenue run rate, and momentum from that growth helped secure a $1 billion funding round valuing the company at $22 billion.
FTC endorsement rules
BBB National Programs said NAD will refer Kalshi for failing to comply with a NAD inquiry into its advertising practices, and NAD framed the issue as whether material connections were disclosed clearly and conspicuously and whether Kalshi took adequate steps to ensure compliance with the Federal Trade Commission’s endorsement and testimonial guides.
NAD also said Kalshi refused to cooperate with the inquiry, and it warned that "Kalshi declined to participate in NAD’s voluntary self-regulatory review of its advertising practices."
The Bettors Insider account said the inquiry was triggered by Kalshi’s advertising presence on Instagram and X and focused on whether influencers and affiliates were clearly and conspicuously disclosing their paid relationships.
Bettors Insider added that the referral is not a fine or enforcement action on its own, but it opens the door for state attorneys general and federal agencies to begin reviews of Kalshi’s advertising and disclosure practices.
Regulatory pressure mounts
The referral arrives as prediction markets face broader scrutiny, including a jurisdictional dispute between state regulators and the Commodity Futures Trading Commission (CFTC) over event contracts and allegations of insider trading.
“BBB National Programs Says Kalshi Ignored Advertising Watchdog’s Inquiry Posted on: June 9, 2026, 11:59h”
Cryptonews.net reported that prediction markets continue rapid growth despite that scrutiny, and it cited a May research report from Bernstein arguing the sector is entering an "institutional" era, with analysts pointing to a block trade executed on Kalshi.
In parallel, Bettors Insider said Kalshi has faced a string of legal and regulatory challenges in recent weeks, including a lawsuit from the state of New Mexico, ongoing state-level classification disputes, a DOJ referral, and CFTC-related scrutiny.
Bettors Insider also said Kalshi has been revising its federal trademark filings and that it has quietly changed affiliate-marketing policies related to election content, with the company barring paid creators from questioning the integrity or accuracy of an election, legal ruling, or official election-related determination.
