- Polymarket has reportedly fired its Chief Marketing Officer, Matthew Modabber, following an internal investigation into a series of incidents, including a marketing campaign that used staged videos of users winning fake trades.
- The CFTC is still investigating Polymarket, and many states are cracking down on prediction markets with cease-and-desist letters and laws that would restrict how they advertise.
NEW YORK – Matthew Modabber has reportedly been fired by Polymarket. He had been the prediction market’s Chief Marketing Officer. Modabber was reportedly fired following an internal investigation into multiple incidents. The investigation primarily focused on a social media advertising campaign that showed fake trades resulting in users profiting.
The New York Post reported the firing on Oct. 22, citing people who are familiar with the matter. Polymarket has not confirmed the firing yet. One source told the Post that the company is finalizing his separation agreement, which may be why it hasn’t been finalized yet.
Modabber had served as the CMO at Polymarket, which is one of the largest prediction market apps in the world, since January 2024. He and Polymarket CEO Shayne Coplan have been friends since high school, which reportedly made the decision harder.
Per the Post, Coplan was initially hesitant about firing his long-time friend, but he eventually agreed that it was the best decision for Polymarket. The board reportedly believed Modabber was getting in the way of the company moving past its startup image as it considers an IPO.
Why Was Polymarket’s Marketing Chief Fired?
The main reason for Modabber’s firing goes back to a Wall Street Journal investigation from June. The Journal reviewed more than 1,100 videos that paid content creators posted between December 2025 and May 2026.
A few key points from the Journal’s investigation are:
- The videos had more than 140 million total views on TikTok, YouTube, and Instagram.
- Many of the bets were filmed on fake websites that looked like Polymarket’s real website.
- About $1.9 million worth of bets that were shown in the videos were never actually placed on Polymarket.
- Many of the creators did not tell their viewers that Polymarket was paying them to make the videos.
The Federal Trade Commission requires paid endorsements to be disclosed, so that could potentially be a violation of its endorsement rules.
Sen. Adam Schiff of California and Sen. John Curtis of Utah sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael Selig in late June asking if the agency was investigating Polymarket. In their letter, the senators said that prediction markets are using federal regulation to avoid the advertising rules that state-licensed gambling operators have to follow.
The CFTC later confirmed that it is investigating Polymarket’s business and social media practices. The investigation is still ongoing, and no violations have been determined so far.
What Does This Mean for Prediction Market Advertising?
Prediction markets like Polymarket are regulated at the federal level by the CFTC. That legal setup is different from legal sports betting sites that are regulated by each state. State-regulated sportsbooks have to follow each state’s advertising rules, such as not marketing to anyone under the age of 21.
Advertising is one of the issues that states have been focused on as they fight back against prediction markets this year.
Minnesota became the first state to pass a law banning prediction markets, which would have made it a felony to operate or advertise one in the state. A federal judge blocked the law in July, ruling that it is likely preempted by federal law, but the case is still going to trial.
The Ohio Casino Control Commission sent cease-and-desist letters to 10 companies on Oct. 2, and Polymarket was one of them. Most of those companies are still offering sports contracts in Ohio, though, and Polymarket has now sued Ohio officials over the letters.
For those who follow Ohio sports betting, the fight between the state and prediction markets does not appear to be ending anytime soon. Missouri Attorney General Catherine Hanaway also sent cease-and-desist letters to Polymarket, Kalshi, and four other prediction market platforms in September.
In the long run, the Polymarket scandal may even help the states that have been trying (unsuccessfully) to regulate prediction markets. It may help because it is an example of a prediction market advertising like a sportsbook without following the rules found in state sports betting laws.
It remains to be seen if the CFTC will punish Polymarket once its investigation is over, or if it will create its own advertising rules for prediction markets. If it does not, then states will likely continue to use this case as an example of why they should have more control over prediction markets.
