Polymarket fired Chief Marketing Officer Matthew Modabber after an internal review of its creator advertising, the New York Post reported on Oct. 22, citing people familiar with the matter.
LegalSportsBetting.com said Polymarket had not confirmed the firing. The federal Commodity Futures Trading Commission (CFTC) investigation into the company's marketing is still open.
One person told the Post that Polymarket is finalizing a separation agreement.
Modabber had held the CMO job since January 2024 and has been friends with Polymarket CEO Shayne Coplan since high school.
Coplan hesitated before agreeing to the dismissal, and the board believed Modabber was holding the company back from shedding its startup image as it weighs an IPO, according to the Post's account.
What the Campaign Showed
The review centred on a June investigation into paid creator videos.
It examined more than 1,100 clips posted between December 2025 and May 2026, which drew over 140 million views across TikTok, YouTube and Instagram.
Many of the bets were filmed on fake sites imitating Polymarket's real one, and about $1.9 million in wagers shown on screen were never placed.
Many creators also did not tell viewers they were being paid, which could breach Federal Trade Commission endorsement rules.
A separate investigation found more than $2.5 million in payments from Modabber's personal PayPal account to over 800 recipients between January 2025 and February 2026.
At least $350,000 went to identified influencers. The account was tied to an email for Salad House, an Italy-based salad chain Modabber co-founded.
When the June findings emerged, Polymarket said it was committed to accuracy, fairness and transparency, and that it would audit its active promotional content.
Federal Scrutiny Continues
Senators Adam Schiff of California and John Curtis of Utah wrote to CFTC Chairman Michael Selig in late June.
Their letter asked whether the agency was investigating Polymarket and argued that prediction markets use federal regulation to sidestep advertising rules binding state-licensed gambling operators.
The CFTC later confirmed it is examining Polymarket's business and social media practices. No violations have been determined.
State Pushback on Advertising
Prediction markets answer to the CFTC, while sportsbooks answer to individual states and their ad rules, such as a ban on marketing to anyone under 21.
Advertising has been one of the main fronts as states push back this year.
Minnesota passed the first state law banning prediction markets, making it a felony to operate or advertise one.
A federal judge blocked it in July, ruling it is likely preempted by federal law, and the case is headed to trial.
In Ohio, the Casino Control Commission sent cease-and-desist letters to 10 companies on Oct. 2, Polymarket among them.
Most still offer sports contracts there, and Polymarket has sued Ohio officials over the letters.
For players, the firing changes nothing about access. The open questions sit with the CFTC inquiry and the Ohio and Minnesota cases.
If this changes where you play, the community keeps its thread on real money casinos up to date.
Photo: New York Post (all rights reserved)