New York City is looking at how prediction markets advertise. However, according to its own report, the investigation won’t address the gambling-law issue that is presently being debated by four courts and a federal regulator. According to Speaker Julie Menin’s office, the investigation looks into possibly dishonest, misleading or abusive practices, with a focus on marketing aimed at youth.
The New York City Council said on August 12 that it has sent letters to Kalshi, Polymarket, Coinbase and Gemini Titan asking for details on their marketing strategies.
NEW: The City Council is investigating potentially deceptive and predatory marketing practices by prediction market companies.@SpeakerMenin sent formal letters notifying Polymarket, Kalshi, Coinbase, and Gemini Titan that we’re prepared to take any necessary action to protect… https://t.co/PF8bvTkURB
— New York City Council (@NYCCouncil) August 12, 2026
Prediction markets are now unrestrained by important marketing regulations and consumer safeguards regulating casinos and online sports betting, according to the notice, which highlights the need and urgency of the investigation.
The Council claims that its goal is to ascertain if further financing, public education campaigns, consumer protection laws, enforcement and health initiatives are required. According to the notice, it has been investigating claims of aggressive marketing tactics in the sector for months, and a hearing is scheduled. There was no specified date for the hearing.
The Council said it will investigate claims that Polymarket utilized or permitted social media influencers to conduct fraudulent and false marketing to get young individuals to wager on event contracts. Unreported influencer marketing, movies showing phony trades on websites meant to seem like Polymarket, the encouragement of insider trading and false representations of winning bets that would have resulted in losses are among the reported strategies it highlights.
These are described in the release as documented techniques and accusations. It claims that the letters are meant to determine whether such activities are common in the sector and does not impute such behaviour to Kalshi, Coinbase or Gemini Titan.
In the statement, Menin claimed that prediction markets encourage people to place bets on sports, politics, culture and the weather. She also stated that she plans to use the Council’s full authority to shield New Yorkers from dishonest and exploitative marketing tactics. She identified herself as a former Commissioner of Consumer Affairs and a regulatory lawyer.
According to the statement, Menin led investigations against debt collectors, unlawful and unlicensed second-hand weapons vendors, fraudulent car loans and for-profit institutions while serving as Commissioner of the Department of Consumer Affairs.
Online prediction markets are growing in popularity, according to Council Member Harvey Epstein, leader of the Committee on Consumer and Worker Protection.
Some forecast $300 billion in traffic on the platforms this year. The source of the forecast is not mentioned in the announcement. The Committee on Oversight and Investigations is chaired by Council Member Shekar Krishnan. Deputy Speaker Nantasha Williams stated that when the investigation gets underway, the Council should hear from all relevant parties.
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