Prediction market platform Kalshi admitted to using a YouTuber's video without permission and applying AI to alter the host's appearance for a YouTube advertisement. YouTuber Elliott Choy discovered that one of his videos had been turned into a race-swapped ad by the platform.

Raises reputational risk for Kalshi as it scales marketing spend to compete with Polymarket and other regulated venues. Misuse of creator content could draw platform scrutiny and complicate brand partnerships.