NYC Council Probes Prediction Market Marketing Practices

The New York City Council announced that it is examining the marketing tactics of four prediction-market platforms—Polymarket, Kalshi, Coinbase and Gemini Titan. Council Speaker Julie Menin sent letters to each company requesting details about how they advertise to New York residents, especially young adults. The inquiry focuses on allegations of “false, deceptive, unconscionable, and objectionable” marketing, including claims that Polymarket used social-media influencers to portray winnings that were not based on the influencers’ own money.

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Prediction markets allow users to wager on outcomes ranging from sports events to political elections. A June report by The Wall Street Journal alleged that Polymarket’s influencer campaigns misled viewers, prompting a Commodity Futures Trading Commission (CFTC) review of the platform’s practices. Separately, New York State is litigating Kalshi, Coinbase and Gemini over accusations that their services constitute illegal gambling, while the companies argue that they operate as federally regulated financial exchanges and therefore fall outside state betting laws. All three firms are headquartered in New York City; Coinbase’s primary operations are in Texas but it is expanding its New York workforce.

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Speaker Menin emphasized the council’s duty to shield residents from predatory advertising, stating that the investigation will determine whether new legislation or policy changes are needed. Gemini has not responded to requests for comment.

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• “Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything,” — Council Speaker Julie Menin

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• “Coinbase offers our customers access to federally regulated prediction markets overseen by the CFTC, and fully complies with applicable laws.” — Coinbase spokesperson

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The council’s memo indicates that a public hearing will be scheduled to examine the marketing practices in detail. The probe does not currently assess whether the platforms violate New York’s gambling statutes, leaving that question to the separate state litigation.

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