NYC council announces probe into ‘predatory marketing practices’ on prediction markets
Council Speaker Julie Menin sent letters to four companies offering prediction market services to New Yorkers as part of an investigation into their marketing practices.
New York City Council Speaker Julie Menin has launched an investigation into four companies offering prediction market services to New Yorkers, alleging they engaged in "abusive marketing" through influencers targeting young adults. The probe, initiated by the New York City Council, includes Kalshi, Polymarket, Coinbase, and Gemini Titan.
Council Member Shekar Krishnan, who chairs the oversight and investigations committee, criticized these apps for their "unprecedented reach" and deceptive marketing tactics aimed at minors. The investigation may lead to further measures, such as legislation, education, and enforcement. The New York City probe adds to ongoing legal battles between state and federal regulators over prediction markets, with the Commodity Futures Trading Commission (CFTC) arguing that these trades are "swaps" under its jurisdiction.
Gemini stated that its company complies with all applicable laws, and Polymarket expressed willingness to cooperate with the council's inquiry.
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