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 alleged predatory and deceptive marketing practices. Led by Speaker Julie Menin, the inquiry focuses on the targeting of young adults and minors through undisclosed social media influencers and simulated winning trades. The probe seeks to determine if local consumer protection laws are necessary, amid an ongoing regulatory turf war between state officials and the federal Commodity Futures Trading Commission.

NYC Council prediction market investigation

• ▪The New York City Council launched an investigation into the marketing and advertising practices of prediction market platforms Kalshi, Polymarket, Coinbase, and Gemini Titan on August 12, 2026.
• ▪New York City Council Speaker Julie Menin sent official letters on August 11, 2026, to Kalshi, Polymarket, Coinbase, and Gemini Titan requesting information about their marketing practices.

Alleged predatory marketing practices

• ▪Polymarket is working with a third-party consulting firm to oversee promotional content and has introduced a new marketing team structure following reports of misleading campaigns.
• ▪The New York City Council's investigation is focused on allegations of predatory, false, deceptive, or abusive marketing tactics within the rapidly growing prediction market industry.
• ▪The New York City Council is investigating allegations that Polymarket used undisclosed influencer marketing, fake trade videos on replica websites, and fictitious profitable wagers to attract users.

Youth protection concerns

• ▪New York City Council Speaker Julie Menin expressed concern that prediction market platforms aggressively entice young people and minors to bet on sports, politics, culture, and weather.
• ▪The New York City Council's inquiry aims to address the potential social harms of prediction markets, including compulsive wagering and the targeting of individuals with addictive tendencies.

Consumer protection legislation considerations

• ▪The New York City Council aims to determine if new consumer protection legislation, public education campaigns, or health measures are needed to protect residents from prediction market marketing.
• ▪The New York City Council's investigation does not focus on whether prediction market platforms violate New York state gambling laws.

Industry regulatory scrutiny

• ▪The Commodity Futures Trading Commission ordered Kalshi to continue operating under federal rules, asserting exclusive federal jurisdiction over prediction markets against state-level challenges.
• ▪New York Attorney General Letitia James is separately suing Kalshi, Coinbase, and Gemini, alleging they operate illegal gambling platforms in the state of New York.
• ▪New York Governor Kathy Hochul signed an executive order in April 2026 prohibiting state employees from using confidential government information to bet on prediction markets.