The New York City Council has opened an investigation into prediction market platforms, sending letters to Kalshi, Polymarket, Coinbase and Gemini Titan over what it called possible false, deceptive or abusive marketing aimed at young users. The inquiry covers allegations that Polymarket paid social media creators to make promotional videos on external lookalike websites, showing fake bets and fake profits. The city-level action follows earlier scrutiny across state offices. Officials in multiple states have raised questions about whether sports-style contracts count as illegal gambling. New York Governor Kathy Hochul signed an executive order barring state employees from betting on prediction markets with insider information. New York Attorney General Letitia James recently sued Kalshi, alleging that it runs an illegal gambling business and seeking at least $36 billion in penalties and disgorgement. The Block reported the council's letters, and PANews relayed the report on Aug. 12.
The New York City Council has sent letters to Kalshi, Polymarket, Coinbase and Gemini Titan, opening an investigation into prediction market platforms, according to The Block, reported by PANews on Aug. 12.
The focus is on what the council described as "false, deceptive or abusive marketing practices" aimed at younger users. The council also plans to review allegations that Polymarket paid social media creators to film promotional videos on external lookalike sites, staging fake bets and fake profits.
State officials in multiple states had already raised concerns about whether sports-style contracts amount to illegal gambling. New York Governor Kathy Hochul signed an executive order that bars state employees from using insider information to place bets on prediction markets.
New York Attorney General Letitia James recently sued Kalshi, charging the company with operating an illegal gambling business. The lawsuit seeks penalties and disgorgement on the order of at least $36 billion.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
