New York City Council investigates prediction markets Polymarket and Kalshi

The New York City Council has launched a major investigation into prominent prediction market platforms, including Polymarket and Kalshi, as well as Coinbase and Gemini Titan. The inquiry focuses on whether these companies are using deceptive, predatory, or misleading marketing tactics.

Council Member Julie Menin has sent formal inquiries to the four companies, requesting information on their New York-based revenue, user counts, and marketing strategies. A primary concern for officials is whether advertisements have targeted minors or young adults, potentially exploiting individuals at risk of addiction. The investigation also examines allegations of influencer-led marketing that may use fake profit scenarios or non-existent transactions to lure users.

While supporters view prediction markets as financial tools for trading on events like elections and sports, critics argue the practice is essentially gambling. With industry trading volumes reaching tens of billions of dollars monthly, the City Council aims to determine if new consumer protection laws or stricter enforcement are necessary to close regulatory gaps.