Lawmakers Warn Prediction Markets Over Youth-Targeted Gambling Advertising Practices

Prediction market companies Kalshi and Polymarket are facing criticism over ads that lawmakers say may appeal to teenagers.

Senators introduced new legislation targeting gambling ads aimed at minors, while a Senate hearing examined social media’s role in exposing young people to gambling content. One industry leader compared the companies’ marketing tactics to Juul.

The Advertising Controversy

Kalshi and Polymarket became popular partly because of their strong social media presence. Critics say some of their ads make gambling look easy and exciting without showing the financial risks.

One Kalshi ad featured a young woman saying she earned enough money on the platform to pay two years of rent. Critics argued the ad gave people unrealistic expectations about how much money they could make. Kalshi also briefly worked with a 15-year-old influencer before ending the partnership after learning the influencer’s age.

Kalshi spokesperson Elisabeth Diana told Front Office Sports that the company does not target minors or knowingly work with underage influencers.

Polymarket has also faced criticism for several Instagram posts that many people considered offensive or inappropriate. Some posts used sexual jokes or mocked sports reporters.

A company representative declined to comment.

Congress Takes Action, and The Juul Comparison

The criticism became more serious this week when Sen. Katie Britt (R-AL) and Sen. Richard Blumenthal (D-CT) introduced the Gaming Advertisement to Minors Enforcement Act. The bill has support from both political parties, which is rare in Congress.

During a Senate Commerce subcommittee hearing on Wednesday, Sen. Marsha Blackburn (R-TN) shared research showing that more than one-third of boys between 11 and 17 admitted to gambling during the past year.

Even more concerning to lawmakers, 60% of those boys said gambling content appeared in their social media feeds through algorithms instead of them searching for it.

“It was served up to them,” Blackburn said during the hearing. “This is not safe, it needs to stop, and advertising to minors is disgusting.”

The hearing included testimony from Patrick McHenry, an advisor to the Coalition for Prediction Markets, and Scott Sadin, co-founder of integrity monitoring company IC360.

The comparison attracting the most attention came from FanDuel co-founder Nigel Eccles. Earlier this year, he warned that Kalshi was “going down the same path as Juul.”

Juul was once one of the fastest-growing vaping companies in the world and reached a value of $38 billion. However, the company later faced lawsuits, government investigations, and public backlash after being accused of marketing vaping products to teenagers.

Eccles said he does not oppose gambling itself, but he believes companies should not make gambling seem like an easy path to financial success.

“I have a huge problem with people trying to basically mislead customers as if it’s some sort of financial liberation,” Eccles told Front Office Sports.

The comparison matters because prediction markets allow users as young as 18, while many states require sports bettors to be at least 21 years old.

Sports Betting Also Faces Pressure and What Happens Next

Prediction markets are not the only part of the gambling industry under pressure. Traditional sports betting companies have also faced criticism over advertising and the impact gambling may have on young people.

Many major sportsbooks, including FanDuel and DraftKings, have already reduced some advertising strategies after facing complaints from regulators and lawmakers.

Critics say prediction market companies may now face similar pressure if they do not change their marketing tactics.

The new legislation and Senate hearing show that lawmakers are taking gambling advertising more seriously, especially when it involves young audiences.

Kalshi and Polymarket must now decide whether to change their marketing strategies on their own or wait for new laws and regulations.

With support from both Republicans and Democrats, experts believe pressure on the companies will continue to grow. The situation is also a warning to the larger gambling industry that advertising aimed at younger audiences could bring major legal and political consequences.