On Wednesday, New York City Council Speaker Julie Menin announced an investigation into the marketing and advertising practices of major prediction market platforms, with a focus on potentially false, deceptive or abusive tactics that particularly target young New Yorkers.
The Council sent letters to four platforms: Kalshi, Polymarket, Coinbase and Gemini Titan, requesting information about their marketing and advertising practices.
The inquiry follows months of Council scrutiny of the rapidly growing prediction market industry and concerns about whether existing consumer protections adequately address its expansion.
“As a mother of four, I know firsthand the fears that come with raising kids in a world where predatory industries are constantly finding new ways to target them,” Menin said. “Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather and pretty much anything. We refuse to let New Yorkers, especially our young people, become collateral damage."
The investigation will examine how prediction markets promote event contracts involving sports, politics, culture, weather and other events. It will also consider whether additional consumer protection legislation, enforcement measures, public education campaigns, health initiatives and funding may be necessary to protect consumers from potentially abusive marketing and compulsive wagering.
The Council is examining allegations involving Polymarket and social media influencers who allegedly promoted event contracts to young adults and potentially minors through false or deceptive marketing. The reported practices include undisclosed influencer marketing, videos showing trades that did not exist, websites designed to resemble Polymarket, fabricated portrayals of profitable wagers and promotion of insider trading.
The inquiry comes as prediction markets rapidly expand their presence in New York City and face increasing scrutiny over their similarities to gambling and the potential risks associated with their marketing practices.
Current restrictions and consumer protections governing casinos and online sports betting do not apply to prediction markets in the same way, raising questions about whether additional safeguards are needed.
