NYC Council launches inquiry into prediction-market ads and possible social harms

In a legislative inquiry, the New York City Council, led by Speaker Julie Menin, has requested extensive information from four leading prediction-market operators—Polymarket, Kalshi, Coinbase Global Inc. and Gemini Space Station Inc.’s Titan platform. The questionnaire asks for details on advertising tactics, influencer compensation, user numbers, age breakdowns, and the amount of money New Yorkers have won or lost since Jan. 1, 2025.

The council aims to determine if existing city statutes sufficiently protect residents from false or deceptive promotions, especially those that may target compulsive bettors or younger users. While Polymarket’s spokesperson indicated willingness to cooperate, the other firms have not responded. The investigation occurs amid ongoing disputes between states and the Commodity Futures Trading Commission over whether these event contracts are gambling or financial products, with recent CFTC actions allowing Kalshi to keep operating in New York and probing Polymarket’s social-media practices.