(AsiaGameHub) – By: Christian Pierce
The National Advertising Division is investigating Kalshi’s marketing practices, zeroing in on the lack of transparency in its use of influencers and affiliates on social media. This comes as the company has refused to cooperate with the inquiry, leading to its referral to regulatory authorities.
Kalshi and Polymarket have heavily invested in influencer-led marketing and media partnerships. However, the NAD claims that platforms like X often fail to clearly disclose these paid relationships. This lack of transparency has led to concerns about the integrity of the promoted content.
For example, Kalshi objected to a post by paid influencer Gunther Eagleman, which questioned the integrity of the Los Angeles Mayoral election. The post garnered hundreds of thousands of views and boosted market volume, but Kalshi asked for its removal.
Kalshi has also partnered with media groups like CNN, CNBC, and Fox News. Building these relationships is seen as a smarter marketing move than traditional TV ads, which gambling companies have poured large sums into.
The NAD’s investigation could lead to further enforcement action. Kalshi is already facing multiple lawsuits across different states. To secure its legal status, it will need to navigate the complex landscape of federal and state regulations.
In the end, transparency will be crucial for Kalshi to build credibility and survive in the face of regulatory scrutiny.
Author bio: Christian Pierce, chief financial columnist and markets commentator.