The New York City Council is taking a closer look at the advertising tactics used by four major prediction market platforms. Speaker Julie Menin issued letters to Kalshi, Polymarket, Coinbase, and Gemini Titan this week, demanding information regarding their marketing methods. These platforms, which allow users to place bets on the outcome of future events, are now under scrutiny for what the council describes as potentially deceptive and predatory advertising practices.
City officials want to know whether these companies are targeting advertisements at individuals under the age of 21. The investigation also seeks clarity on how these platforms monitor the accuracy of their profitability claims and whether they pay social media influencers to encourage user participation. The council aims to determine if current laws are sufficient to protect residents or if new enforcement measures are necessary.
Executives at these platforms have 14 days to respond to the inquiry with detailed evidence of their internal policies. A spokesperson for Polymarket stated that the firm is ready to work with the council on these concerns. Meanwhile, a representative for Coinbase noted that their prediction market offerings are federally regulated by the CFTC and that the company maintains compliance with existing laws. This development highlights the growing tension between the rise of new digital betting models and local consumer protection standards in New York.