NYC Probes Prediction Markets Over Deceptive Ads
NYC Probes Prediction Markets Over Deceptive Ads
The News
The New York City Council is investigating four major prediction market platforms — Kalshi, Polymarket, Coinbase, and Gemini Titan — over allegedly deceptive marketing that targets young people.
Council Speaker Julie Menin sent letters to the four companies announcing a formal probe into their advertising practices and social harms.
The inquiry opens a new front in a bitter, state-by-state legal war over how the booming industry should be regulated.
Timeline
A Wall Street Journal report alleged Polymarket used influencers to fake winning bets.
New York Attorney General Letitia James filed a lawsuit against Kalshi, Coinbase, and Gemini, alleging they operate illegal gambling platforms in the state.
The City Council announced its probe, with Menin's letters demanding responses from all four companies.
Reactions
Menin said the council is actively considering legislation to address its concerns about the platforms.
Council members allege the companies use predatory marketing tactics aimed at young adults, and note prediction markets face none of the advertising restrictions imposed on casinos or licensed sports-betting operators.
The industry has argued its platforms are federally regulated financial exchanges under the CFTC — not gambling operations subject to state law. That divide is the core of the dispute.
What's Next
The council plans a hearing, and the companies must respond to its information requests.
The council can pursue consumer-protection legislation, public education campaigns, and funding, but cannot bring criminal charges.
James's separate lawsuit against Kalshi, Coinbase, and Gemini continues in court.
In Congress, lawmakers are weighing the bipartisan Prediction Markets Are Gambling Act, which would redefine the platforms.
More
The council probe explicitly excludes whether the platforms violate New York state gambling laws.
Twenty-three states currently prohibit wagering on elections. Attorneys note it remains legally unclear whether federal CFTC jurisdiction covers the sports-betting activity that drives much of prediction-market volume.
Colleges Condemn Students Mocking Kirk Assassination Anniversary
Charleston White Arrested Again on Florida Battery Charge
Sep 13, 2026
Border Patrol Rescues MS NOW Crew in Desert
Sep 13, 2026
Supreme Court Restores Missouri's Old House Map
Sep 13, 2026
Alaska Drops Felony Voter Charges Against Samoans
Sep 13, 2026
Trespasser Breaches Harris' Malibu Estate; No Arrest
Sep 12, 2026
Hegseth Pressed Downed Airmen Into 60 Minutes
Sep 12, 2026
Houthis Seize Mokha, Choking Saudi Oil Exports
Sep 12, 2026
Altman Rules Out OpenAI IPO This Year
Sep 12, 2026
Jury Acquits Lil Durk in Murder-for-Hire Case
Sep 12, 2026
Judge: Trump Broke Law Halving FEMA Staff
Sep 12, 2026
Maher Calls Democrats' Gaza Genocide Claim a Lie
Sep 12, 2026
Blizzard Revives StarCraft, Sends Diablo to Netflix
Sep 12, 2026
Trump's Queens Childhood Home Sells for $1.93M
Sep 12, 2026
Scientists Find New Virus in Tick Invading US
Sep 12, 2026
Britain Bans Settlement Imports; US States Threaten Payback
Sep 12, 2026
Prison Fire Kills 7 as Kurds Protest Killing
Sep 12, 2026
Kosovo Rallies for Ex-President Before Hague Verdict
Sep 12, 2026
Cruz Booed at GameDay Over College Sports Bill
Sep 12, 2026
Blast Hits Bulgarian Arms Plant Supplying Ukraine
Sep 12, 2026
Sep 13, 2026