Kalshi admits to AI race-swapping YouTuber's video for unauthorized ad
Prediction market platform Kalshi admitted to using YouTuber Elliott Choy's video without permission and applying AI to alter the host's race for a YouTube advertisement, the company and the creator confirmed. Choy accused Kalshi of copying his video for the ad, drawing online criticism. A Kalshi representative said the AI-generated ad is old and that the company no longer uses AI-generated ads. Kalshi is also reviewing its relationship with the agency behind the ad.
The incident puts Kalshi's marketing vetting under direct scrutiny at the exact moment it is scaling consumer advertising through brokerage integrations and sports-event contracts. Competitors Polymarket and Novig are both running their own celebrity campaigns, so any breach of creator trust becomes a comparative weapon rivals can wield for trader acquisition. The race-swapping detail intensifies reputational risk beyond ordinary copyright disputes, because it touches on representation standards that advertisers and platform partners increasingly enforce.
Kalshi's claim that the ad is old and its agency review are partial defenses, but they do not neutralize the creator's public accusation. Choy escalates to platform takedown demands or sponsor pressure, Kalshi's distribution on YouTube and brokerages faces friction that polished competitors can exploit. The event tests whether prediction market brands can absorb marketing missteps as they move from niche finance tools to mass-market awareness spend.