What was the BBB's investigation into Kalshi about?

The inquiry focused on whether Kalshi's influencers and affiliates properly disclosed paid relationships when promoting the platform on social media. The review also examined whether the company followed Federal Trade Commission guidelines for endorsements and sponsored content.

Did the BBB find that Kalshi violated advertising rules?

The BBB's National Advertising Division did not publish a formal determination because Kalshi declined to participate in the voluntary review process. Instead, the organisation referred the matter directly to regulators for further consideration.

Why are influencer disclosure rules important for financial platforms?

Disclosure rules help consumers understand when content is sponsored or paid for by a company. Regulators view clear disclosure as important when financial products are promoted through social media, particularly to retail investors.

What happens after Kalshi is referred to regulators?

The referral allows relevant regulatory authorities to decide whether further investigation or enforcement action is warranted. There is no guarantee that the referral will result in penalties or formal proceedings.

What is Kalshi and how does it make money?

Kalshi operates a prediction market where users trade contracts linked to real-world events. The platform generates revenue from trading activity and has experienced rapid growth as interest in prediction markets has increased.

How significant is this regulatory challenge for Kalshi?

The referral adds to existing scrutiny facing prediction markets, but it does not directly affect Kalshi's operations at this stage. The company continues to expand despite ongoing regulatory debates surrounding event-based contracts.

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BBB refers Kalshi to regulators over ad probe

Q: Why did the Better Business Bureau refer Kalshi to regulators?

The Better Business Bureau's National Advertising Division (NAD) referred Kalshi to regulators after the prediction market platform declined to participate in a review of its social media advertising practices. The referral will be sent to relevant state Attorneys General and other authorities for possible action.

Written by Liezl GambePublished Jun 10, 2026, 2:55 AM

Prediction market platform Kalshi is facing additional scrutiny after the Better Business Bureau's National Advertising Division referred the company to regulatory authorities over concerns related to influencer marketing disclosures.

The self-regulatory advertising watchdog said it will refer the matter to relevant state Attorneys General and other authorities after Kalshi declined to participate in a review of its social media advertising practices.

“At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising,”

The organisation said.

The inquiry examined whether influencers and affiliates promoting Kalshi adequately disclosed paid relationships and whether the company complied with Federal Trade Commission guidelines governing endorsements and sponsored content.

According to the National Advertising Division, Kalshi's refusal to engage in the voluntary review process will also result in notifications being sent to the social media platforms where the advertising appeared.

The development follows broader scrutiny of the prediction market sector, including concerns raised by media watchdog groups regarding social media campaigns that promoted event trading as a potential side income opportunity.

Despite the regulatory attention, Kalshi continues to grow rapidly, with the company reportedly targeting a US$1.5 billion annualised revenue run rate following a US$1 billion funding round that valued the platform at US$22 billion, while analysts increasingly point to growing institutional participation in prediction markets.