New York City probes Kalshi and Polymarket over social harms

The New York City Council is investigating the advertising practices of four major prediction market platforms, including Polymarket, Kalshi, Coinbase Global Inc., and Gemini Space Station Inc.'s Titan platform. The council is examining whether current laws adequately protect residents from false or deceptive marketing from these new platforms and address potential social harms to residents.

The council sent a list of questions to Polymarket, critically inquiring about the extent of similar marketing practices within the prediction market industry and related social harms to City residents. The council also wants to create policies to tackle products offered to those who may engage in compulsive wagering on event contracts.

The platforms are being asked to provide information on the number of users in the state, their age and demographics, and how much money New York City residents have won or lost. Other questions focus on advertising practices, influencer payments, and the effectiveness of marketing in attracting younger users. The firms have 14 days to respond, and the council plans to hold public hearings on the matter.