Kalshi Faces Regulatory Referral After Declining Ad Review

BBB National Programs has referred prediction market operator Kalshi to regulatory authorities after the company refused to participate in an investigation into its advertising claims. The self-regulatory organization confirmed that Kalshi failed to respond to an inquiry from its National Advertising Division (NAD).

As a result of the non-compliance, the NAD has escalated the matter to state attorneys general, notifying them of Kalshi’s refusal to engage with the advertising review process. The organization stated that it is taking formal steps to involve the appropriate regulatory bodies.

The dispute centers on advertising assertions made by Kalshi, a platform that allows users to trade on the outcomes of real-world events. BBB National Programs, which oversees voluntary advertising standards, sought to examine these claims but was met with non-cooperation from the company.

This development adds to the scrutiny facing Kalshi as it operates in the relatively nascent field of event-driven contracts. The referral to state authorities and regulators underscores the challenges of enforcing advertising standards when companies decline voluntary oversight mechanisms.