Kalshi, a prediction market platform, has come under scrutiny for its controversial marketing tactics aimed at young users, including signing a partnership with a 15-year-old streamer. The Wall Street Journal reported that Kalshi has been actively targeting college-aged social media creators to promote its services, often without considering the ethical implications of working with minors.
In September 2023, Kalshi engaged with a young video game streamer known as vert1d, who was tasked with promoting the platform on X. Just one week after the partnership commenced, Kalshi terminated the agreement, citing legal concerns about working with minors. A Kalshi employee communicated to vert1d, “Yo brother, legal team confirmed that we can’t work with minors rn. Kinda sad tbh.” Following this incident, vert1d updated their profile to state, “don’t take sponsored deals,” while later expressing no hard feelings towards Kalshi.
The swift dissolution of this partnership highlights Kalshi’s aggressive approach to attracting young users, especially students. The company has previously sought to sponsor college campus clubs and events, claiming that these environments are ripe for fostering new financial movements. In a now-deleted post on X, Kalshi remarked, “College campuses are the best place to spark new financial movements and will play a key role in bringing the next 100M users to prediction markets.” Although Kalshi asserts it no longer has active partnerships with student groups, its recruitment efforts for young influencers continue.
One notable example is 19-year-old Jay Liang, a sophomore at the University of Waterloo. Liang created a TikTok video that garnered more than 50 million views, making it one of Kalshi’s most successful marketing campaigns. Notably, the TikTok did not disclose its sponsorship status, raising questions about transparency in influencer marketing. Liang claimed that a Kalshi supervisor suggested targeting students because they “spend money recklessly.” While Kalshi has denied this claim, the underlying strategy of appealing to younger demographics is evident.
Norton Yang, a 19-year-old student at New York University who has also worked with Kalshi, articulated the marketing logic: “It’s more relatable, advertising-wise, when someone your age or in your situation talks about something.” This sentiment reflects a broader trend among prediction markets where platforms like Kalshi and its main competitor, Polymarket, seek to capture the attention of younger audiences. A survey conducted in January indicated that Millennials and Generation Z are more familiar with platforms like Kalshi and Polymarket than older demographics, contrasting with the awareness levels of traditional sports betting sites.
Kalshi’s marketing strategies raise critical questions about the ethics of targeting young audiences and the responsibilities of companies engaged in such practices. With ongoing scrutiny from media outlets and the public, the company faces challenges in balancing growth with ethical marketing practices.
As the conversation around youth engagement in financial markets continues, Kalshi’s actions will likely remain a focal point for discussions on responsible marketing in the digital age.
