In a bold marketing move, prediction market platform Polymarket has actively recruited American social media influencers to promote election betting content, despite federal restrictions prohibiting US users from placing bets on the platform.
Star-Studded Promotion
Polymarket's senior director of growth, Armand Saramout, initiated contact with several high-profile US-based influencers in September 2023. As a result, major Instagram accounts such as Mr Moist (5.5 million followers) and HoodClips (12 million followers) have run sponsored Polymarket content.
Xavi Fahard, who manages an Instagram account with over 16 million followers, confirmed a multi-post promotional agreement with Polymarket. Fahard reported that the sponsored content's performance was in line with typical engagement rates for paid promotions.
Controversial Strategy
A Polymarket spokesperson acknowledged the US-focused marketing strategy, stating that the platform "reached out to influencers on both sides of the aisle to promote our data and drive traffic and eyeballs to polymarket.com." The company claims that 99% of visitors to their website only consume news without placing trades.
This marketing push comes amidst increased scrutiny following a New York Times investigation that uncovered a single trader placing approximately $28 million in Trump-related bets across four Polymarket accounts.
Regulatory Concerns
Polymarket's aggressive approach in targeting US influencers raises questions about compliance with federal regulations governing prediction markets and election betting. While the platform positions itself as an information source, actively recruiting US-based influencers to promote betting-related content appears to challenge regulatory boundaries.
The situation highlights the complex relationship between cryptocurrency-based prediction markets, traditional betting regulations, and the evolving landscape of social media marketing. As these platforms continue to operate in regulatory gray areas, increased attention from authorities and media outlets seems likely.
As the US approaches another presidential election cycle, the intersection of social media influence, prediction markets, and electoral politics continues to present new challenges for regulators and platform operators alike.