The New York City Council has opened an investigation into the marketing and advertising practices of prediction market platforms. Kalshi, Polymarket, Coinbase and Gemini Titan have each received a letter from Council Speaker Julie Menin, carrying more than 60 questions about revenue booked in the city, local user numbers and compliance with consumer protection law.
What the council is examining
The focus is the targeting of young people and minors, deceptive tactics and undisclosed advertising. Part of the review covers Polymarket: materials cite Wall Street Journal findings that fake mirror sites were used to simulate trades in 70% of 1,100 influencer videos. The council is also looking at promotion that did not disclose a partnership, and at bets presented as profitable that would in fact have produced a loss.
Harvey Epstein, who chairs the consumer protection committee, said trading volume on prediction platforms could reach $300 billion this year. The council cannot bring criminal charges. It can subpoena documents, and it is weighing public hearings, new laws or consumer education campaigns.
A case running in parallel
The probe runs alongside a suit from state Attorney General Letitia James against Kalshi, which she calls an illegal gambling app. Kalshi and other operators argue their business is not betting: users trade with each other, not against the platform. The CFTC backed Kalshi and said regulation of national derivatives markets is its call, not New York state's. Polymarket is already rebuilding its marketing, with Bird founder Travis VanderZanden in as head of growth.
