The New York City Council has launched a formal legislative inquiry into the advertising conduct of four prediction market platforms: Polymarket, Kalshi, Coinbase, and Titan, the prediction market platform owned by Gemini. Council Speaker Julie Menin has sent inquiry letters to all four companies as part of the investigation, according to Odaily. The Council is reviewing whether existing city laws are sufficient to protect residents from false or deceptive marketing. It is also studying policy options around concerns that prediction market products could induce users to engage in compulsive betting on event contracts. In its letter to Polymarket, the Council made clear that the inquiry will not be limited to allegations against Polymarket itself. The Council said it will also assess how widespread similar marketing practices are across the prediction market industry, along with the potential social harm they may cause. The investigation adds to the regulatory pressure that prediction market companies are facing. Further details about the timeline or any possible follow-up actions were not disclosed in the report.
The New York City Council has opened a legislative inquiry into advertising practices at four prediction market platforms. Polymarket, Kalshi, Coinbase and Titan — the prediction market platform owned by Gemini — are all in the spotlight. The move adds fresh regulatory pressure on the prediction market industry.
Letters sent to Polymarket, Kalshi, Coinbase and Titan
Council Speaker Julie Menin has sent inquiry letters to all four companies. The Council says the letters are part of a legislative investigation aimed at assessing whether existing city laws can adequately protect residents from false or deceptive marketing.
Compulsive betting on event contracts
Beyond advertising, the Council is studying policy responses to a specific risk: prediction market products could encourage users to place compulsive bets on event contracts.
Industry-wide focus in Polymarket letter
In its letter to Polymarket, the Council said the inquiry goes beyond allegations concerning Polymarket itself. The investigation will also evaluate how common similar marketing practices are across the prediction market industry, and what social harm those practices may cause.
Further details about the timeline of the inquiry or potential next steps were not disclosed.
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