BBB’s NAD Refers Kalshi to States Over Ad Disclosures

The Better Business Bureau’s National Advertising Division said Monday it will refer prediction market platform Kalshi to state regulatory authorities after the company declined to participate in a voluntary review of its social media advertising.

NAD said it will forward the matter to the appropriate regulators, including relevant state attorneys general, and will notify the social media platforms where the advertising appeared.

The review examined whether Kalshi’s influencers and affiliates made clear and conspicuous disclosures of material connections in social media promotions and whether the company followed 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 wrote.

Kalshi declined to participate in NAD’s self-regulatory review, prompting the referral. The inquiry focused on viral marketing campaigns that promoted prediction trading as a potential “side hustle” on platforms such as TikTok and Instagram.

Kalshi provided a statement that the company is on track for a roughly $1.5 billion annualized revenue run rate and recently completed a $1 billion funding round that valued the business at about $22 billion.

The referral occurs amid ongoing regulatory actions affecting prediction markets. State regulators and the Commodity Futures Trading Commission have a standing jurisdictional dispute over event-based contracts. Several platforms have faced allegations of insider trading that led to user bans, and block trades have taken place on exchanges including Kalshi.

NAD’s review process is voluntary. When firms decline to engage, NAD can refer matters to government regulators and publicize its findings so authorities and platforms can consider enforcement or content moderation.