BBB’s National Advertising Division Refers Kalshi to Regulators After Prediction Market Platform Refuses to Participate in Influencer Ad Inquiry

BBB National Programs’ National Advertising Division announced Monday, June 8, that it will refer prediction market platform Kalshi to regulatory authorities, including relevant state attorneys general, after Kalshi refused to participate in an NAD inquiry into its social media advertising practices. The inquiry focused on whether Kalshi adequately disclosed material connections between the platform and the influencers or affiliates it uses in advertising, in compliance with FTC guidelines on endorsements and testimonials.

The referral is part of NAD’s standard marketplace monitoring program. When companies decline to engage with the NAD’s self-regulatory process, the organization refers the matter to appropriate authorities, including the Federal Trade Commission and state regulators, as well as the platforms on which the advertising appeared. NAD did not specify the exact advertising conduct at issue, but the inquiry was triggered by Kalshi promo code‘s advertising presence on Instagram and X.

What NAD Was Investigating

The National Advertising Division launched its inquiry to determine whether Kalshi review was ensuring that influencers and affiliates promoting the platform were clearly and conspicuously disclosing their paid relationships with the company. Federal Trade Commission guidelines require that material connections between advertisers and social media promoters be disclosed in a way that is easy for consumers to notice and understand.

Kalshi declined to participate in the NAD inquiry at all. Under NAD and NARB procedures, a company’s failure to engage triggers a mandatory referral to authorities with jurisdiction over the advertising conduct in question. The referral covers relevant state attorneys general as well as the social media platforms where the ads appeared, with which NAD has established reporting relationships.

This is not an isolated regulatory moment for Kalshi. The company 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. At the same time, Kalshi has quietly been revising its federal trademark filings, removing references to bookmaking and gambling language as legal pressure builds across the country.

What Happens Next

The NAD referral is not a fine or enforcement action on its own, but it opens the door for state attorneys general and federal agencies to take a closer look at Kalshi’s advertising and disclosure practices. State AGs have increasingly active consumer protection and advertising enforcement agendas, and an NAD referral is a formal trigger for those agencies to begin their own reviews.

For Kalshi, the accumulation of regulatory actions across multiple fronts simultaneously creates significant operational and reputational complexity. The company is simultaneously expanding its institutional infrastructure, having announced a major data partnership with Sportradar this week, while navigating mounting scrutiny of its business practices from advertising regulators, state gambling authorities, and federal agencies.

Prediction market platforms occupy a legally contested space in the United States, and the regulatory framework governing their advertising and disclosure obligations is still evolving. As these platforms grow in scale and public visibility, regulatory bodies at multiple levels are beginning to apply the same standards they use for other financial and gambling products. The NAD referral adds another dimension to that scrutiny, extending it specifically into the advertising and influencer marketing practices that have fueled much of Kalshi’s rapid user growth. Readers can learn more about how prediction markets operate legally in the US and the differences between prediction markets and sports betting.