Sydney Sweeney Ad Sparks Backlash, Kalshi’s New York Challenge

America’s obsession with popular prediction markets is hotting up. Sites like Kalshi and Polymarket, both of which have monthly trading volumes well into the billions, are the new gambling commodity for the US, allowing people to trade ‘contracts’ on endless future events, like who’s going to be the next president and which actor will be cast as James Bond next.

Prediction markets are by far one of the most talked about topics in the US over the past year alone, and they’ve once again made headlines this past week following actress Sydney Sweeney’s controversial ad campaign with Novig, which instantly went viral across on X.

Sydney Sweeney Sparks Backlash After Posing in Ad for Sports Prediction Market Novig

Since launching at the start of August, Novig, a prediction market platform exclusively for sports trading, has been on a marketing tirade. The operator has seemingly got what it was searching for with its Sydney Sweeney marketing campaign, something that’s put the prediction market in news headlines for almost an entire week. The “Euphoria” actress starred in an ad for Novig, valued at $500 million back in February according to Fortune, which has since seen her hit with a wave of backlash accusing her of sexualizing women’s sports.

American gymnast Gracie Kramer posted a video with the caption, “Idk what Sydney Sweeney was doing, but this is what a woman in sports looks like.”, while a growing number of other prominent athletes, like British champion sprinter Amy Hunt and Australian Olympic swimmer Ariarne Titmus, have also publicly condemned the ad campaign.

The 29-year-old has responded to the backlash via her Instagram, posting photos of other female athletes, including former UFC fighter Ronda Rousey and tennis legend Serena Williams, doing similar poses for other companies in popular advertisements.

For Novig, at least, it seems to be a case of all publicity is good publicity, as the prediction market platform has experienced a huge surge in engagement following the backlash.

Brand mentions for the site jumped from 392 per week to 4,633 in the immediate aftermath of Sweeney’s advertisement, an increase of 1,180%, while Business Inside reports that Novig’ social media mentions increased ninefold.

The ad itself also generated huge engagement across X, Instagram, and other social media platforms, most recently sitting at a combined 1.2M+ likes and over 2.8M shares.

It’s one of the most viral sports betting-related ads in recent memory and isn’t the first time Sydney Sweeney has stirred up controversy, either, as the popular actress also starred in an ad for American Eagle jeans last year that critics were quick to condemn.

Sweeney even once sold soap mixed with her bathwater, and it’s now general assumption that any ad she stars in will lead to social media discussion, which is likely one of the driving forces behind Novig signing her up.

“The campaign was about embracing a fun idea,” said Sweeney, who is now officially a Novig strategic partner and equity holder. “The concept is simple: cut through the noise and put the focus entirely on sports. The campaign brings that idea to life with confidence, humour and a playful edge.”

This almost certainly means it won’t be the last time the actress stars in an ad for Novig, so plenty more can be expected over the next year.

Prediction Markets Have Exploded in the US Since 2025

Prior to the recent Sydney Sweeney ad campaign, prediction markets had already been growing at a rapid pace in the US, functioning as a platform for both casual bettors and those looking to transition away from traditional sportsbook sites.

Combined monthly trading volume on prediction markets rose from less than $5 billion in September 2025 to an eye-watering $24 billion in April 2026, symbolizing a near five-fold increase in just seven months.

On Kalshi, the most popular prediction market site of all of them, sports consistently account for 80% to 83% of overall trading turnover, so it was inevitable that other prediction markets exclusively dedicated to just sports would start launching, as witnessed by the arrival of Novig.

Novig claims to be the first ever prediction market site intended just for sports bettors and fans, and it’s extremely likely that similar sites will also start launching over the coming year as the US prediction market industry gold rush continues, with 5% of Americans having already said they use prediction markets to trade on sports like football, according to SSRS’s May 2026 survey.

Interestingly, prediction market activity is projected to reach a staggering $1 trillion globally by 2030, largely driven by US activity, which would make it one of the most valuable markets on the planet.

New York Moves to Kick Kalshi Out

Prediction markets have reached such a level in the US that it’s proving impossible for state lawmakers to ignore them.

Already, Arizona, Connecticut, Massachusetts, Maryland, Michigan, Montana, Nevada, New Jersey, Rhode Island, Washington and Wisconsin are pushing to restrict prediction markets, deeming these sites as unregulated gambling platforms.

The biggest move so far, though, has come from New York, with Attorney General Letitia James and Governor Kathy Hochul actively suing Kalshi, alleging that it’s running an “illegal gambling operation.” 

The state is asking the court to stop Kalshi from operating in New York, as well as seeking to recoup money that players have lost via the prediction market.

If New York is successful in its attempt to sue Kalshi, it would be the biggest legal victory yet and could signal an onslaught of other states pushing to do the same thing.

New York remains fierce with its anti-illegal gambling movement at the moment, having just come off the back of a major legal win over sweepstakes casino operator VGW, which resulted in VGW agreeing to payout $8 million, including penalties, as part of the settlement.

Will Prediction Markets Be Banned and Are They Safe?

At the moment, prediction markets are surrounded by controversy, most recently sparked even further by the viral Sydney Sweeney ad for Novig.

In the US, these sites are generating huge amounts of revenue, while the Trump administration has remained relatively supportive of the fast-growing industry, despite efforts from some states to regulate or ban them.

Globally, several jurisdictions have already banned or heavily restricted platforms like Kalshi and Polymarket, while European gambling authorities, including in France and the Netherlands, have blocked unlicensed operators.

A rising number of states in the US are likely going to be successful in their attempts to crackdown on prediction markets over the coming months, but an outright ban for these sites across the US won’t happen.

As for overall safety, public opinion remains divided, with some arguing that prediction markets are marginally safer than regular sports betting platforms.

However, users must remain aware of the risks and pressures involved with prediction markets, as the ‘trades’ are still effectively bets, despite being presented as financial contracts.