NEWS: Schiff Joins Cortez Masto, Democratic Colleagues in Requesting Answers from X On Apparent Preferential Treatment of Polymarket

Washington, D.C.  – U.S. Senator Adam Schiff (D-Calif.) joined U.S. Senators Catherine Cortez Masto (D-Nev.), Richard Blumenthal (D-Conn.), and Jacky Rosen (D-Nev.) in a letter to X (formerly Twitter) Chief Compliance Officer C. Rob DeCampos requesting answers on the seemingly preferential treatment Polymarket is receiving from X. The Senators raise concern that, due to Donald Trump Jr.’s role as an adviser and investor for Polymarket, any preferential treatment could help the President and his family enrich themselves. “Typically, X allows users to report an ad for a myriad of reasons; however, when attempting to report Polymarket’s ads through the standard X interface, users are denied the option to do so (Figure A). This is not the case with other types of advertisements, including Kalshi, another prediction markets platform offering sports gaming that is illegal in states across the U.S.,” the Senators wrote. “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 Senators continued. “It would not be the first time Donald Trump Jr. has attempted to use his position to enrich himself. Earlier this year, he reportedly pressured a room of Republican state attorneys general to stop trying to regulate prediction markets, which he is heavily invested in.” The full text of the letter can be found here and below. Dear Mr. DeCampos, We bring to your immediate attention concerns that X, formerly known as Twitter, may be giving preferential treatment to Polymarket, a prediction market platform offering illegal sports gambling across the United States. It has been widely reported that Donald Trump Jr., President Donald Trump’s eldest son, is an adviser to and investor in Polymarket. Providing preferential treatment to a specific advertiser with direct financial ties to the President and his family raises significant questions. Polymarket has been advertising on television, billboards, and social media since resuming limited onshore operations last year. The platform was previously banned in the United States for operating an unregistered derivatives-trading platform and has been the subject of increased scrutiny for enabling fraud and for allowing insider trading that could endanger military operations and national security. Since the start of the year, Polymarket has also been the subject of lawsuits by state attorneys general for facilitating illegal sports gaming. Since 1961, the Federal Wire Act has prohibited the transmission of bets or wagers through interstate commerce (18 U.S. Code § 1084) and Section 5c(c)(5)(C) of the Commodity Exchange Act permits the Commodity Futures Trading Commission (CFTC) to prohibit event contracts that involve gaming, are unlawful under federal or state law, or are contrary to the public interest. Despite that, sports wagers on prediction markets – deemed illegal by both the Ninth and Sixth Circuit Courts – make up more than 80 percent of Polymarket’s trading volume and are the primary source of the platform’s rapid growth. Polymarket’s X ads target new users with videos featuring sports betting services and offering financial incentives to create an account. Typically, X allows users to report an ad for a myriad of reasons; however, when attempting to report Polymarket’s ads through the standard X interface, users are denied the option to do so (Figure A). This is not the case with other types of advertisements, including Kalshi, another prediction markets platform offering sports gaming that is illegal in states across the U.S., including in Nevada (Figure B). 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. It would not be the first time Donald Trump Jr. has attempted to use his position to enrich himself. Earlier this year, he reportedly pressured6 a room of Republican state attorneys general to stop trying to regulate prediction markets, which he is heavily invested in. Given the need to eliminate even the appearance of impropriety, we request the answers to the following questions: Does X allow advertisers to purchase ads that cannot be reported through X’s timeline interface? If so, which advertisers does X provide this service to? If so, how much additional revenue does X receive for providing this service? If so, does X receive any preferential treatment from advertisers or regulators for offering this service? Did Polymarket, its leadership, or any of its representatives approach X about running ads with a limited report function? If so, who? Did President Donald Trump, Donald Trump Jr., or any other member or representative of the Trump family approach X about running ads with a limited report function? If so, who? How does X plan to ensure prediction market ads featuring sports are banned from the platform in states following the Sixth and Ninth Circuit decisions that sports event contracts are sports gaming and must be regulated at the state and Tribal levels? What is X’s ad policy for prediction market companies given the varying legality across the country? Does X’s partnership with Polymarket influence the way X’s ad policy applies to Polymarket? If so, please explain how this policy differs from advertisers without a partnership with X. Does X provide other official partners customized ad policies? We ask that you provide responses to our questions no later than November 30, 2026. We hope you and your team take the time to provide a detailed and thorough response. Thank you for your attention to this matter. ###