BBB refers Kalshi to regulators over influencer ad practices

The Better Business Bureau’s National Advertising Division has referred Kalshi to regulatory authorities after the prediction market platform declined to participate in a review of its influencer advertising practices.

According to a statement published by the BBB’s National Advertising Division on Monday, the matter will be sent to the appropriate regulatory authorities, including relevant state Attorneys General, for possible enforcement action.

The self-regulatory body said it examined whether material connections between Kalshi and individuals promoting the platform online were clearly disclosed and whether the company had taken sufficient steps to follow Federal Trade Commission endorsement guidelines.

NAD said Kalshi chose not to participate in the voluntary review process. As a result, the organization stated that it will also notify the social media platforms where the advertising appeared.

Advertising disclosures come under review

Details released by the BBB indicate that the inquiry focused on social media promotions distributed by influencers and affiliates associated with Kalshi.

The review sought to determine whether audiences were adequately informed when content creators had financial relationships with the company.

Separate scrutiny has also emerged from Media Matters for America, a nonprofit media watchdog organization. According to Media Matters, Kalshi’s marketing campaigns on TikTok and Instagram helped popularize prediction trading among younger audiences, with some content presenting participation on the platform as a potential “side hustle.”

The latest referral adds another compliance issue for Kalshi as prediction markets continue drawing attention from regulators and policymakers. The company has already faced questions surrounding the regulatory treatment of event contracts, while some critics have raised concerns about market integrity and allegations of insider trading within the broader prediction market sector.

Crypto expansion continues despite scrutiny

Even as the advertising review moves toward regulators, Kalshi has continued expanding its crypto-related offerings.

A day after the BBB announcement, Kalshi revealed that it had filed with the U.S. Commodity Futures Trading Commission to list perpetual futures tied to Hyperliquid’s HYPE token. The proposed contract joins a growing list of cryptocurrency derivatives products the company is seeking to bring to U.S. traders.

The filing follows Kalshi’s recent launch of Ethereum perpetual futures under its “American Perpetuals” brand. As crypto.news reported on June 4, Ethereum became the second cryptocurrency available through the platform’s perpetual futures lineup after the earlier introduction of Bitcoin perpetual futures.

Several additional contracts linked to cryptocurrencies, including XRP, Solana, Dogecoin, Stellar, Shiba Inu, and Hedera, remain under separate regulatory review.

Strong user growth has continued alongside the company’s product expansion. In comments reported by Bloomberg, a Kalshi spokesperson said the platform is tracking toward a $1.5 billion annualized revenue run rate.

Bloomberg also reported that investor demand recently supported a $1 billion funding round that valued the company at $22 billion.

Those growth figures arrive as prediction markets gain traction among both retail and institutional participants, despite ongoing disagreements between state regulators and the CFTC over the oversight of event-based contracts.