TLDR New York City Council has opened an investigation into four prediction market platforms over advertising practices. Council Speaker Julie Menin sent letters to Polymarket, Kalshi, Coinbase and Gemini Titan on August 11. The letters raise concerns that companies may have targeted young adults and possibly minors with misleading ads. Companies have 14 days to respond to more than 60 questions about users, revenue and marketing. The probe comes as New York’s Attorney General separately sues Kalshi over alleged illegal gambling operations.
The New York City Council has started looking into how four prediction market platforms advertise to residents. The companies involved are Polymarket, Kalshi, Coinbase and Gemini Titan.
Council Speaker Julie Menin sent letters to each company on August 11. The letters ask about advertising practices and whether the platforms have targeted minors.
Menin’s letter to Polymarket referenced reports that the company worked with marketing agents and social media influencers. These reports suggest the ads may have reached young adults and possibly minors.
The letter also asked Polymarket about its promotional videos. It raised questions about whether any trades shown in the videos were real.
What The Companies Are Saying
Polymarket and Kalshi both told the Wall Street Journal they plan to work with the Council. Coinbase said it follows all applicable laws.
Gemini Titan did not respond right away when asked for comment. Each company now has 14 days to answer the Council’s questions.
The letters include more than 60 questions. They cover topics such as user numbers, customer ages and how much money New York residents have won or lost.
The Council also wants details on influencer payments. It is asking how well these campaigns worked at bringing in younger users.
New York City Council cannot file criminal charges against these companies. It can