NYC Council Opens Inquiry Into Prediction-Market Marketing

What happened

New York City Council Speaker Julie Menin announced on August 12 that the Council has begun an investigation into major prediction-market platforms’ marketing and advertising practices in the city. The Council said it will examine potentially false, deceptive, or abusive tactics, with particular attention to marketing that reaches young people.

Menin sent official letters notifying four platforms of the inquiry and requesting information about their marketing practices directed at New Yorkers: Kalshi, Polymarket, Coinbase, and Gemini Titan. The Council also said it plans to hold a hearing as part of its review.

The announcement does not set out a proposed bill or a finding that any company violated the law. Instead, it frames the inquiry as a fact-gathering process intended to assess whether additional measures are needed.

The key details

According to the Council, it has been examining allegations concerning predatory marketing in the prediction-market industry for months. The review is focused on marketing and advertising in New York City rather than on a stated review of every aspect of the platforms’ operations.

The Council said its eventual assessment could include whether consumer-protection legislation, enforcement, public-education campaigns, health measures, or funding are warranted. Its stated concerns include potential harms connected to compulsive wagering and promotion of these products to minors and young adults.

As part of the investigation, the Council will examine allegations related to Polymarket’s use of, or allowance for, social-media influencers to encourage young adults to wager on “event contracts.” The reported practices identified by the Council include influencer promotions that were not disclosed, videos showing trades that did not exist on sites made to resemble Polymarket, portrayals of supposedly profitable wagers that would actually have lost money, and promotion of insider trading.

Council Member Harvey Epstein, chair of the Committee on Consumer and Worker Protection, said the Council will assess companies’ claims and advertising tactics, as well as the potential need for legislation. Council Member Shekar Krishnan, chair of the Committee on Oversight and Investigations, said he joined the Speaker in launching the investigation. Deputy Speaker Nantasha Williams emphasized hearing from stakeholders and allowing the information gathered to guide the Council’s next steps.

Why it matters

The Council described prediction markets as a rapidly growing industry in New York City. Epstein cited projections of $300 billion in platform volume this year, though the Council presented that figure as a projection rather than a reported result.

A central issue for the inquiry is the Council’s assertion that marketing restrictions and consumer protections applicable to casinos and online sports betting do not currently constrain prediction markets. The Council says understanding whether the alleged practices extend across the industry will help determine whether legislation, regulations, programs, or other safeguards are appropriate.

The inquiry also puts marketing disclosures and the presentation of wagering outcomes at the center of the Council’s review. The stated focus on younger audiences, addictive tendencies, and allegedly misleading promotional material suggests that consumer-facing advertising practices will be a principal subject of the planned hearing and information requests.

What to watch

The next material developments will be the platforms’ responses to the Council’s letters and details of the planned hearing, including its schedule, witnesses, and scope. The Council may also indicate what information it has obtained through its investigation.

It will be important to watch whether the Council identifies a need for specific legislation, enforcement activity, education initiatives, health-related measures, or funding. At this stage, the release announces an investigation and possible policy review; it does not announce new requirements for the platforms or describe an enacted change in law.