New York City Council opens investigation into prediction market platforms over marketing practices

The New York City Council has launched an investigation into prediction market platforms Kalshi, Polymarket, Coinbase, and Gemini Titan over allegations of deceptive marketing targeting young people. Led by Speaker Julie Menin, the probe focuses on advertising practices rather than gambling laws, following reports that Polymarket used influencers to promote fake bets. This inquiry intensifies a broader regulatory battle, as New York's Attorney General sues several platforms while federal regulators assert exclusive jurisdiction.

NYC Council marketing probe

• ▪New York City Council Speaker Julie Menin sent letters on August 11, 2026, to Kalshi, Polymarket, Coinbase, and Gemini Titan requesting information about their marketing practices.
• ▪The New York City Council opened an investigation into four major prediction market platforms—Kalshi, Polymarket, Coinbase, and Gemini Titan—over potentially false, deceptive, or abusive marketing practices.
• ▪The New York City Council requested that Polymarket respond to its queries regarding marketing practices within 14 business days of the August 11, 2026 letter.

Youth targeting allegations

• ▪The New York City Council's inquiry aims to examine whether New York consumers, especially youth, need additional protections from predatory marketing by prediction market platforms.
• ▪New York City Council Speaker Julie Menin stated that prediction markets aggressively entice consumers, particularly young people, to wager on sports, politics, culture, and weather.

Polymarket fake bet claims

• ▪In response to allegations of deceptive marketing in June 2026, Polymarket stated it would conduct an audit of its promotional content and work with a third-party consulting firm to oversee content released by promotion partners.
• ▪A June 2026 Wall Street Journal report alleged that Polymarket paid social media influencers to advertise fake bets and wins on replica sites to attract young users.

Prediction market regulation

• ▪New York Attorney General Letitia James filed lawsuits against Kalshi, Coinbase, and Gemini Titan, alleging they operate illegal gambling platforms without a permit in New York.
• ▪In April 2026, New York Governor Kathy Hochul signed an executive order prohibiting state employees from using confidential government information to bet on prediction markets.
• ▪The Commodity Futures Trading Commission ordered Kalshi to continue operating under federal rules, asserting exclusive federal jurisdiction over prediction markets against state-level challenges.

Platform investigation scope

• ▪The New York City Council's investigation focuses on marketing and advertising practices and does not explore whether prediction market platforms violate state gambling laws.
• ▪While the New York City Council lacks authority to bring criminal charges, the probe will evaluate if new consumer protection legislation, enforcement, or public education campaigns are needed.