A prediction-betting platform called Polymarket recently came under scrutiny for recruiting US-based influencers to promote election betting on its site, even though it was prohibited from allowing US citizens to place wagers. The platform had been paying influencers to post about the odds of the presidential race.
Some influencers did not post a disclaimer stating that US traders are prohibited, leading to concerns that some users may have found other ways to place bets. Polymarket had previously paid a $1.4 million fine to the Commodity Futures Trading Commission (CFTC) for operating without proper licensing, and the user activities in question would violate the agreement between the two.
The company had also spent $269,000 on Facebook and Instagram ads targeting the US audience, claiming the betting platform to be “the most accurate way to track & forecast the election.” Critics argued that the betting platform’s user base is dominated by crypto-traders, and their involvement in the betting may give out false results as they would obviously vote for Trump, challenging their “the most accurate way to track & forecast the election” claim.
The situation raises questions about Polymarket’s compliance with US regulations and its potential impact on the election.
