NYC council announces probe into ‘predatory marketing practices’ on prediction markets
New York City Council opened an investigation into prediction market companies, including Kalshi, Polymarket, Coinbase, and Gemini Titan, over alleged “false and deceptive” influencer marketing aimed at young adults. Speaker Julie Menin sent letters seeking information on whether these firms used abusive promotional tactics and whether the city should respond with new legislation, education, or enforcement. Council Member Shekar Krishnan said the platforms are expanding quickly and are targeting minors and young adults with deceptive marketing. The probe comes amid a broader conflict between state gaming regulators and the federal Commodity Futures Trading Commission over whether prediction market contracts, including sports-related ones, are illegal gambling products or federally regulated swaps. Coinbase said it complies with applicable laws and offers access to CFTC-regulated markets, while Polymarket said it looks forward to engaging with the council.
