Democrats accuse Musk's X of favoring Polymarket
A group of Senate Democrats accused Elon Musk's social media platform X of giving the prediction market Polymarket "preferential treatment" on its timeline.
In a letter to X leadership Friday, Sens. Catherine Cortez Masto (D-Nev.), Jacky Rosen (D-Nev.), Adam Schiff (D-Calif.) and Richard Blumenthal (D-Conn.), sent screenshots showing three apparent attempts to report Polymarket ads on X does not give users the option.
They paired the screenshots with ads for other companies including prediction market competitor Kalshi and Elon Musk's Starlink product, which give users the option to "report" the advertisement.
The lawmakers questioned whether Musk was giving Polymarket "preferential treatment" since President Trump's son, Donald Trump Jr., serves on the advisory board for Polymarket. Musk was a top ally of the president at the beginning of his second term, and the two have since reconciled ahead of the midterms.
The younger Trump's venture capital firm, 1789 Capital, also became one of the biggest financial backers of Polymarket in September.
Trump Jr. also advises Kalshi and has a financial stake in the company.
"This seemingly preferential treatment calls into question whether X is attempting to provide an undue competitive advantage to Polymarket and - by extension - the President and his family," the letter, which was first reported by Semafor, stated.
The lawmakers asked Rob DeCampos, X's chief compliance officer and head of payments compliance, whether X allows advertisers to purchase ads that cannot be reported through X's timeline and if Polymarket's leadership or representatives approached the social media platform about running ads with a limited report function.
They also asked whether Trump, Trump Jr. or representative's of the Trump family approached X about running these ads.
The lawmakers referenced the Sixth and Ninth Circuit Court of Appeals decisions earlier this year that ruled states can regulate prediction market platforms like gambling and sportsbook.
The two rulings broke from the 3rd Circuit Court of Appeals's April decision, which allowed Kalshi to operate in New Jersey as the company's appeal process proceeds. The court ruled Kalshi is likely to succeed in its argument that federal law preempts New Jersey's regulation.
The contradicting rulings are teeing up a fight in the U.S. Supreme Court.
The lawmakers asked DeCampos how X "plans to ensure prediction market ads featuring sports are banned from the platform in states" following the rulings. They gave DeCampos until Nov. 30 to respond.
Polymarker, X and the Trump Organization did not immediately respond to request for comment.