Kalshi referred to regulators over influencer marketing inquiry

Prediction market platform Kalshi has been referred to US regulatory authorities after declining to participate in an inquiry into its influencer marketing practices.

The inquiry was opened by the National Advertising Division (NAD), an independent self-regulatory body that reviews advertising claims and marketing practices in the United States.

According to NAD, the investigation focused on whether material relationships between Kalshi and influencers or affiliates were being clearly disclosed in social media advertising, and whether the company had taken adequate steps to ensure compliance with Federal Trade Commission endorsement guidelines.

Kalshi declined to participate in the inquiry, prompting NAD to refer the matter to relevant regulatory authorities, including state Attorneys General, for review and possible enforcement action.

"NAD opened its inquiry into Kalshi following credible public reporting and as part of its ongoing, proactive monitoring of influencer and affiliate marketing practices across the marketplace," said Phyllis Marcus, vice president of the National Advertising Division.

The referral comes days after Semafor reported that Kalshi had asked several paid political influencers to delete social media posts questioning the integrity of the Los Angeles mayoral election while promoting the platform's prediction markets. According to the report, Kalshi said the posts violated its affiliate marketing policies.

The company has also previously taken action against creator-related activity on its platform. 

Earlier this year, Kalshi fined and suspended Artem Kaptur, a video editor working for YouTube creator MrBeast, after alleging he used non-public information to place trades on the platform. Kalshi said at the time it had opened more than 200 investigations into potential violations of its trading rules over the previous year.

NAD did not make a determination on the underlying advertising practices. The referral relates solely to Kalshi's decision not to participate in the self-regulatory process.