Advertising watchdog NAD to refer Kalshi to regulators after no-show
BBB National Programs' National Advertising Division announced June 8, 2026, that it will refer Kalshi Inc. to appropriate regulatory authorities after the prediction market platform failed to participate in an NAD inquiry. The referral stems from the NAD's standard marketplace monitoring program rather than a consumer complaint. The NAD did not specify which regulators would receive the referral or detail the particular advertising conduct that triggered the inquiry. Kalshi has faced escalating regulatory scrutiny in recent days, including a lawsuit by New Mexico Attorney General Torrez alleging illegal online sports betting and parallel CFTC preemption suits in Minnesota and Rhode Island.
Kalshi must now add NAD referral defense to its existing six-front regulatory battle, stretching legal resources across CFTC preemption suits, state AG actions, and federal advertising compliance. Any adverse finding by the receiving regulators could compound Kalshi's exposure as Congress weighs broader prediction market oversight legislation.
Becomes the latest regulator or self-regulatory body to take action against Kalshi or Polymarket, joining DOJ-CFTC referrals, a New Mexico AG lawsuit, and a South Korea criminal probe in a multi-front compliance wave against the two largest U.S. prediction market platforms.