George Santos says Kalshi staff told paid political influencers not to disclose their sponsorships. The former congressman has been permanently banned from the prediction market operator and says he has seen the messages himself.
Kalshi is accused by George Santos of directing paid political influencers to post without disclosure sponsorship tags. The alleged text messages were not produced and Kalshi did not respond. Polymarket terminated its CMO in June after Politico reported at least $350,000 in undisclosed creator payments, and Polymarket’s CMO in June after Politico reported at least $350,000 in undisclosed creator payments.
- Santos Claims Kalshi Hid Influencer Deals
- Moran’s Complaint Against Kalshi
- Kalshi Defends CFTC Jurisdiction
- The Political Betting Risk Ahead of the Midterms
George Santos says he has seen text messages showing Kalshi staff telling paid political influencers not to disclose their sponsorships. The former congressman, who has his own score to settle with the prediction market operator after being permanently banned from the exchange, claims the company wanted promotional posts to look like ordinary social media commentary.
Speaking on the New Normal podcast with former Virginia Democratic Senate candidate Mark Moran, Santos alleged that Kalshi’s political marketing operation deliberately avoided sponsorship disclosures on social media. He contrasted the company’s alleged practices with those of rival Polymarket, which he claimed requires paid partners to disclose their arrangements. Santos served as a paid Polymarket promoter, but the company severed ties with him after he was found to have traded on his own attendance at the State of the Union address at Kalshi.
Santos claims Kalshi hid influencer sponsorships
He told Indian Gaming Association Conference Chair Victor Rocha and Executive Director Jason Giles that the people who control Kalshi’s political operation instructed influencers to post as if the arrangement were organic. Santos said he has literally seen those text messages, but he did not identify the individuals involved or produce them during the interview.
Santos believes the arrangements warrant scrutiny from both the Federal Trade Commission and the Federal Election Commission, particularly so close to the midterms. Whether any laws were broken depends on who paid whom, what was posted, and whether the content amounted to political advertising. He said Kalshi’s conduct should be investigated, but did not claim that the conduct violated federal law.
AGBrief has been tracking prediction market operator disclosures since Polymarket’s CMO was terminated.
Moran’s complaint against Kalshi escalated
Moran has a different complaint about Kalshi, one that began with a $100 wager on himself. He says the exchange initially offered him a one-year suspension and an $800 fine, only to raise the proposed penalties to a five-year ban and a fine of approximately $6,200 after he refused to make a public statement. He traced the dispute to November 2025, when he asked Kalshi’s political markets team to add his name to a market about prospective candidates. They added him within a day, leaving him free to buy $100 in contracts on his own political future.
Kalshi’s published disciplinary findings confirm the final outcome: a five-year suspension and a $6,229.30 penalty. They do not confirm Moran’s version of the negotiations, with the exchange stating that he admitted breaching its rules but failed to reach a settlement. Moran has challenged the company’s handling of his case through litigation, accusing it of acting in bad faith. His account of the requested public statement has not been independently corroborated.
Kalshi defends CFTC jurisdiction over sports contracts
Kalshi maintains that its event contracts fall under the Commodity Futures Trading Commission’s jurisdiction, while state regulators argue that sports-event contracts constitute wagering subject to state gambling laws. New York’s gaming regulator has sought court intervention to compel Kalshi to comply with investigative subpoenas concerning sports-event contracts, advertising, products offered to younger customers and its corporate structure. Santos called for traditional gaming operators and tribal gaming interests to coordinate their opposition, arguing that Kalshi’s products should face gambling regulation rather than being treated exclusively as federally regulated financial instruments.
The CFTC’s July order forced Santos to surrender $17,569.98 in trading profits and pay another $17,500 in civil penalties. Kalshi found that Santos had manipulated the price of contracts tied to his attendance. The regulator found that Santos made misleading public statements while trading those contracts and bought and sold positions using information about his travel plans. Santos settled without admitting or denying the regulator’s findings and agreed to a three-year ban from CFTC-regulated markets. Kalshi subsequently imposed a permanent suspension and a separate $71,356 penalty.
The political betting risk ahead of the midterms
Moran pointed to a $700,000 position in a Texas political market, suggesting a single large trader could have an outsized effect on the displayed odds. He did not provide transaction records to identify the trader or evidence that the position had changed anyone’s voting intentions. He wants the CFTC to treat markets controlled by one person’s decisions differently from those determined by millions of voters.
Santos took the argument further, warning that overseas traders might use large positions to influence perceptions of American elections. He called for restrictions on foreign participation, although the interview offered no evidence of coordinated foreign interference in the markets discussed. Neither man’s disciplinary record settles the questions they have raised about Kalshi’s marketing practices, but Santos has yet to produce the messages he claims to have seen.
Frequently Asked Questions
What does Santos claim Kalshi told influencers?
Santos claims Kalshi staff instructed paid political influencers to post without disclosing sponsorship, describing the posts as if they were organic. He says he has seen text messages containing the instructions. Kalshi did not respond to the claims, and Santos did not produce the messages or identify the individuals involved.
Why was Polymarket’s CMO fired?
Politico reported in June that Polymarket’s CMO, Matthew Modabber, sent at least $350,000 to content creators between January 2025 and February 2026. About two dozen creators promoted Polymarket on X without disclosing a paid partnership. His employment was terminated, and the payments have not been independently verified.
Why was George Santos banned from Kalshi?
Kalshi found that Santos manipulated contracts tied to whether he would attend President Trump’s February 24 State of the Union address. The CFTC ordered him to surrender $17,569.98 in profits and pay $17,500 in civil penalties. Kalshi imposed a permanent suspension and a $71,356 penalty, while Santos settled the federal case without admitting or denying the findings.
What penalty does Mark Moran face?
Kalshi issued a five-year suspension and a $6,229.30 penalty to Moran following a $100 wager on his own candidacy. The exchange says he admitted breaching its rules but failed to settle. Moran disputes the treatment of his case and has challenged it in litigation. His account of a raised $6,200 penalty has not been independently verified.
Which regulator has jurisdiction over prediction markets?
Kalshi says event contracts fall under the CFTC’s jurisdiction. State regulators argue that sports-event contracts constitute wagering under state gambling laws, and New York has sought court intervention over contracts, advertising, younger customers and corporate structure. Santos has asked gaming operators and tribal interests to coordinate opposition to prediction market sports contracts.
Will the FTC and FEC act?
Santos asked both agencies to scrutinise the alleged undisclosed influencer payments close to the midterms. Whether any laws were broken depends on who paid whom, what was posted, and whether the content amounted to political advertising. Neither agency has commented on the allegations.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
