A consumer advocacy group has taken Polymarket to court, alleging the prediction market giant ran a coordinated campaign to lure college students into real-money betting through paid influencers, staged videos, and promotions that glossed over the financial risks involved.
The National Association of Consumer Advocates (NACA) filed the lawsuit in D.C. Superior Court, naming CEO Shayne Coplan and Chief Marketing Officer Matthew Modabber as defendants. The complaint lays out three counts of deceptive marketing practices and unfair promotion, seeking unspecified damages, equitable restitution, and an injunction to stop the alleged conduct.
What the lawsuit actually alleges
According to the lawsuit, Polymarket paid influencer Riley Gaines $6,000 and Brian Krassenstein $9,300 to promote the platform without properly disclosing those financial arrangements. The complaint alleges these weren’t isolated payments but part of a broader strategy specifically designed to reach college-aged individuals. Staged betting videos and misleading promotional content allegedly downplayed the risks of participation.
The filing was reportedly triggered by a Wall Street Journal investigation into Polymarket’s marketing strategies, which apparently provided much of the factual foundation for NACA’s claims.
