The New York City Council has launched an investigation into Kalshi, Polymarket, Coinbase and Gemini Titan over allegations that their prediction-market services used deceptive marketing tactics to target young adults.
Council Speaker Julie Menin sent letters to the four companies as part of a probe into their use of influencers and other promotional practices. The council said the investigation will assess whether additional legislation, consumer education or enforcement measures are needed.
Council Member Shekar Krishnan accused prediction-market platforms of expanding rapidly while using misleading marketing to attract young users, including minors.
The investigation comes amid a broader regulatory conflict over prediction markets in the United States. State gaming regulators have argued that some sports-related event contracts amount to illegal sports betting, while the Commodity Futures Trading Commission maintains that federally regulated prediction-market contracts fall under its jurisdiction as derivatives.
Coinbase said its customers access federally regulated prediction markets overseen by the CFTC and that the company complies with applicable laws. Polymarket said it looks forward to engaging with the New York City Council. Gemini did not immediately comment.
Council Speaker Julie Menin sent letters to the four companies as part of a probe into their use of influencers and other promotional practices. The council said the investigation will assess whether additional legislation, consumer education or enforcement measures are needed.
Council Member Shekar Krishnan accused prediction-market platforms of expanding rapidly while using misleading marketing to attract young users, including minors.
The investigation comes amid a broader regulatory conflict over prediction markets in the United States. State gaming regulators have argued that some sports-related event contracts amount to illegal sports betting, while the Commodity Futures Trading Commission maintains that federally regulated prediction-market contracts fall under its jurisdiction as derivatives.
Coinbase said its customers access federally regulated prediction markets overseen by the CFTC and that the company complies with applicable laws. Polymarket said it looks forward to engaging with the New York City Council. Gemini did not immediately comment.