Polymarket Faces Federal Scrutiny Over Influencer Marketing

Polymarket is facing mounting legal and political pressure in the United States after fresh allegations claimed the prediction market platform relied on undisclosed influencer deals and staged promotional content to attract American users.

The latest scrutiny follows reporting by The Wall Street Journal, which examined videos showing people celebrating supposedly profitable bets. Investigators believe some of that content may have been staged and designed to promote the platform despite its limited availability to U.S. customers at the time.

The controversy has now reached Washington. Senators John Curtis and Adam Schiff have formally asked the Commodity Futures Trading Commission to examine the company’s marketing practices and determine whether consumers were misled.

Lawsuit Alleges Hidden Payments and Misleading Promotions

The federal attention comes alongside a lawsuit filed by the National Association of Consumer Advocates against Polymarket, chief executive Shayne Coplan and chief marketing officer Matthew Modabber.

The complaint accuses the company of running intentionally concealed social media campaigns aimed at persuading Americans to use a platform that was not officially available to them. It argues that promotional posts often appeared to be genuine personal opinions rather than paid endorsements.

Investigators also claim influencer payments were routed through Modabber’s personal PayPal account instead of more transparent corporate channels. Their analysis identified at least $500,000 in payments to online creators.

Among the examples cited is activist Riley Gaines, who allegedly received at least $15,000 before publicly promoting Polymarket’s forecasting accuracy. According to the lawsuit, those financial ties were not properly disclosed to viewers.

The legal action argues that consumers were left unable to distinguish between independent opinions and paid advertising, potentially influencing betting decisions.

Company Declines to Address Allegations

Polymarket did not comment directly on the lawsuit. A company representative instead indicated that the business continues reviewing how it communicates with users and is working to strengthen public trust.

The latest dispute adds to a growing list of regulatory challenges for the prediction market operator. In 2022, regulators forced the company out of the U.S. market after stripping its license. Polymarket returned only after acquiring a licensed exchange in 2025.

Now, with both federal lawmakers and consumer advocates examining its marketing tactics, the platform faces renewed questions over how it built its audience and whether those promotional efforts crossed legal boundaries.

Source: tribuna.com

Polymarket Faces Federal Scrutiny Over Influencer Marketing

Lawsuit Alleges Hidden Payments and Misleading Promotions

Company Declines to Address Allegations

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