On Wednesday, the New York City Council announced it is examining marketing practices used by prediction market platforms, according to the office of Council Speaker Julie Menin.
Menin informed four prediction market platforms — Polymarket, Kalshi, Coinbase, and Gemini Titan that the council has been investigating claims of “false, deceptive, unconscionable, and objectionable marketing practices” by event contract exchanges for several months.
“Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything,” Menin said in a statement. “I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms.”
“We look forward to engaging with The New York City Council on this matter,” a Polymarket spokesperson said in a statement in response to the probe.
Kalshi spokesperson Dani Lever said that the company looks “forward to educating the New York City Council about our business model and practices.”
Menin included in her letters to the platforms that the council is investigating whether other prediction market companies use similar advertising strategies. A memo attached to these letters stated that the allegations against Polymarket highlight an urgent need to determine if legislation or other policy changes are required.
The memo, which also described the probe, clarified that the inquiry is not investigating whether event contract exchanges breach New York’s state gambling laws.
New York State is currently involved in active litigation against Kalshi, Coinbase, and Gemini, accusing the companies of operating illegal gambling schemes.
Polymarket and Gemini are both headquartered in New York City. Coinbase, while officially based in Texas, announced earlier this year its plan to expand to over 1,000 employees in New York.
By CEO NA Editorial Staff
