An investigation by The Wall Street Journal has uncovered that Polymarket is allegedly compensating social media creators to produce misleading content that promotes the prediction market. The Wall Street Journal reviewed 1,105 TikTok videos related to Polymarket, finding that 778 of these appeared to depict individuals placing bets.
A closer examination revealed that none of the videos featured the actual Polymarket website. Instead, the videos used dummy sites designed to resemble the real platform. Furthermore, more than half of the videos that conveyed winning bets showed bets that, in reality, would have resulted in losses, according to The Wall Street Journal.
The publication spoke with creators who collaborated with Polymarket and reviewed guidance materials provided to them, which were intended to make their videos more convincing and engaging. Polymarket is said to have enlisted a “social-media army” to amplify the reach of these videos, increasing their chances of going viral.
This scrutiny of Polymarket comes as governments consider how to regulate prediction markets. Minnesota recently became the first U.S. state to enact a ban on such markets. Other states have attempted similar prohibitions, but these efforts have been met with multiple lawsuits. Additionally, in May, Spain blocked Polymarket and another prediction market, Kalshi, while determining their compliance with local gambling laws.
