Published on: June 9, 2026, at 11:59 AM.
Updated on: June 9, 2026, at 11:59 AM.
- The BBB has accused Kalshi of not participating in an inquiry about its advertisement practices.
- The BBB’s National Advertising Division has informed state attorneys general regarding this issue.
The Better Business Bureau (BBB) has escalated its concerns regarding Kalshi to relevant regulatory bodies due to the company’s failure to engage in a National Advertising Division (NAD) investigation.
The NAD is part of BBB National Programs, an independent non-profit dedicated to overseeing industries that predominantly self-regulate. Although Kalshi is under the supervision of the United States Commodity Futures Trading Commission (CFTC), this federal body has faced scrutiny for being inadequately equipped to oversee the numerous event contracts offered daily by prediction markets like Kalshi.
The NAD claims that Kalshi, the largest prediction market in the United States, did not comply with their inquiry.
The NAD’s concern centered on whether Kalshi adequately disclosed any material connections with influencers or affiliates in their social media advertisements, as well as whether the company ensures adherence to the Federal Trade Commission’s advertising guidelines involving endorsements and testimonials.
The NAD has referred Kalshi to state attorneys general and relevant regulators for scrutiny and possible enforcement actions due to its non-participation.
Self-Regulation in Prediction Markets
During the Trump administration, the CFTC permitted prediction markets to explore previously restricted areas, which now includes event contracts related to sports. Kalshi and its competitors are now offering trades on outcomes like the Stanley Cup game, presenting a variety of in-game props from predicting the first goal scorer to total assists by players.
The CFTC aims to ensure a free market devoid of insider trading practices while complying with the Commodity Exchange Act of 1936, which legally established the trading of financial derivatives linked to specific commodities and assets. With the expansion of prediction market activity, Kalshi and its peers are intensively marketing their services to consumers, employing celebrities and influencers for promotion.
The NAD is seeking clarity regarding Kalshi’s marketing strategies to assess compliance with FTC regulations.
In April, David Miller, who oversees enforcement at the CFTC, acknowledged that the role of self-regulation within prediction markets is significant.
“Exchanges have critical responsibilities under our foundational principles,” stated Miller, emphasizing that “effective regulation is heavily reliant on exchanges fulfilling their roles.”
Miller’s remarks imply the CFTC is minimally active in auditing how prediction markets market their revenue streams. Recently, Polymarket ended its collaboration with disgraced former U.S. Representative George Santos (R-NY) following a DOJ investigation into supposed insider trading connected to Kalshi.
A Closer Look at NAD
Established in 1971, the NAD of the BBB examines advertising across various media to ensure that industries comply with FTC standards. Historically, the NAD has concentrated on the health sector, particularly focusing on scrutinizing dietary supplements.
When businesses are identified as engaging in misleading or false advertising, the NAD refers these issues to the correct regulatory or law enforcement agencies.