Musk’s X Bans Gambling Promos Amid Regulatory Clampdown

* X bans all gambling ads in a sweeping new policy shift. * Platforms like Kalshi feel the heat amid regulatory crackdowns. On February 24, 2026, Cryptopolitan reported that Elon Musk’s social media platform X banned all gambling and promotional content tied to sports betting and other high-risk financial activities. This move reflects broader regulatory crackdowns on prediction markets, highlighting the increasing scrutiny these platforms face as they have encountered legal challenges and pressure from state regulators in recent years. The new policy had an immediate impact on platforms like Kalshi, a prediction market offering event contracts. Kalshi promptly removed all affiliate badges from X, which influencers and affiliates previously used to endorse its services. A spokesperson from Kalshi noted that the badges were difficult to monitor and distinguish from sponsored endorsements, adding that the policy change forced their removal. To clarify the platform’s stance, X's head of product, Nikita Bier, stated that the changes aim to eliminate “prediction market spam” on the site. He also warned users against undisclosed paid promotions. In contrast, Polymarket, another major player in the prediction market industry, still displays affiliate badges on X. The company secured an official partnership with X in June 2025, which allows the integration of market data within the platform. This strategic alignment underscores the differing operational approaches prediction market firms use to navigate the regulatory challenges reshaping their industry. As scrutiny around prediction markets grows, U.S. regulators remain divided on their classification. The Commodity Futures Trading Commission (CFTC), under new chairman Mike Selig, has voiced support for the “responsible development” of event contracts. Selig reaffirmed that the CFTC has exclusive oversight of these markets and stressed the agency's willingness to defend that jurisdiction in disputes with state regulators, who often label prediction markets as unlicensed gambling platforms. Amid these opposing views, X’s updated policy signals a pivotal shift in the industry, potentially reshaping the dynamics between social media platforms, prediction markets, and regulators in an increasingly contested environment.