Social Rocket
US authorities are examining how prediction markets are promoted on social media. In Polymarket's case, this includes suspicions of undisclosed influencer partnerships and videos showing alleged winnings. At the same time, the platform is advertising in the US midterm campaign 2026 with elaborately produced spots. A report about the alleged departure of marketing chief Matthew Modabber surfaced on the 23 October – Polymarket had initially not confirmed this personnel change, according to Adweek.
What the authorities are actually investigating
The New York City Council announced on 12 August 2026 an investigation into the advertising practices of Polymarket, Kalshi, Coinbase and Gemini Titan. In its official statement, it explicitly names allegedly concealed influencer advertising, staged trading activity and the portrayal of supposedly profitable bets. These are subjects of an inquiry, not facts established by a court.
On 24 September, the New York Attorney General's office also filed a lawsuit against Polymarket US. It accuses the platform of illegal gambling in the state and seeks, among other things, an injunction and financial penalties. Here too, the lawsuit must be distinguished from a final ruling. Earlier, 2,022 the US regulator CFTC had concluded a separate settlement of 1,4 million dollars over event contracts that were not properly registered at the time.
Why the new election campaign is a marketing question
In October, Polymarket launched the US campaign "Watch the Midterms Move". Director Kathryn Bigelow is responsible for two films, and a third comes from the directing trio Pantera. The spots pick up everyday themes such as cost of living and link them to markets on future events. This generates attention, but does not answer how clearly trading risks and paid endorsements are communicated. The films and their production were reported on, among others, by Gaming America.
The FTC explains for US influencers that material relationships with a brand must be clearly disclosed – including benefits rather than direct payment. Disclosures belong in the specific content and must not appear only inconspicuously in profiles or hashtags. Whether individual Polymarket posts violate this cannot be derived from the allegations known so far alone.
What social media teams can learn from this
Three checks are decisive for brands: Was a creator collaboration paid for or compensated in another way? Are product functionality, profit claims and risks verifiable? Who documents approvals, changes and complaints? High view counts, a prominent director's name or low cost-per-click do not replace these controls.
For politically charged campaigns, the platform level comes into play: Meta is tightening its rules for US election ads; different restrictions apply in Europe. Reddit also distinguishes political advertising rules from measures against artificial interaction. For commercial creator contracts, transparency about compensation and agency fees remains relevant.
Personnel matter: so far a report, not a confirmation
The Adweek investigation of 23 October refers to the New York Post for Modabber's alleged dismissal. As of publication, Adweek had no confirmation or statement from the company. A connection to the ongoing controversies is also not substantiated. As of 24 October 2026.