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U.S. lawmakers are urging federal regulators to investigate Polymarket over allegations that it used deceptive marketing practices involving staged or misleading trading videos, The Wall Street Journal reports.
The concerns center on reports that social media creators were paid to produce content appearing to show real users making large profits on the prediction market platform. However, many of the videos allegedly featured simulated or imitation trading environments rather than actual transactions, potentially giving viewers a false impression of real returns and platform activity.
Lawmakers argue that the campaign may have misrepresented how the platform works and could mislead retail users, particularly given that prediction markets operate in a regulatory gray area in the U.S.
They are calling on the Commodity Futures Trading Commission to investigate whether the advertising practices violated federal rules or consumer protection standards.
The scrutiny also highlights broader concerns about marketing in the prediction market and crypto-adjacent sectors, where promotional content on social media can blur the line between entertainment, simulated performance and real financial outcomes. Critics say such tactics can amplify unrealistic expectations about earnings and risk.
The company has said it is reviewing the allegations and examining its marketing practices.
