New York City Council has opened an investigation into four prediction market platforms — Polymarket, Kalshi, Coinbase and Gemini Titan. Council Speaker Julie Menin sent requests to the companies on 11 August demanding disclosure of advertising practices and possible targeting of minors.
In her letter to Polymarket, Menin cited reports that the platform used marketing agencies and influencers to attract young audiences through deceptive advertising, including fake trades in promotional videos. 'Troubling reports allege that Polymarket has colluded with marketing agents and influencers to target young people — and thus potentially minors — through false and deceptive advertising,' the request states.
The Council is demanding data from 1 January 2025: user numbers in New York, age and demographics, winnings and losses by city residents, sums paid to influencers, and the effectiveness of marketing in attracting young people. The letters contain more than 60 questions. Companies were given 14 days to respond.
Polymarket and Kalshi said they were ready for dialogue with the Council. Coinbase stated it 'fully complies with applicable laws'. Gemini Titan did not comment.
While the City Council cannot bring criminal charges, it can issue subpoenas and demand documents. Menin said the Council is considering legislation to strengthen oversight, educational campaigns and budget reallocation in response to prediction market activity. Public hearings are planned.
Meanwhile, New York Attorney General Letitia James filed a lawsuit against Kalshi on 31 July, accusing the platform of unlicensed illegal gambling. Kalshi and the federal Commodity Futures Trading Commission (CFTC) argue that event contracts are regulated under federal law and the state has no authority to intervene. The CFTC used emergency powers and ordered Kalshi to continue operating despite New York's attempts to shut it down.
