New York City Council demands details from four prediction market firms amid concerns over deceptive advertising targeting young users.
New York City Council Speaker Julie Menin has initiated an investigation into Coinbase Global Inc. (NASDAQ:COIN), Polymarket, Kalshi, and Gemini Titan, focusing on their marketing practices. The probe follows letters sent to the firms requesting information on potentially false or abusive advertising, particularly concerning youth exposure.
The investigation adds to existing regulatory pressure, including a lawsuit by New York Attorney General Letitia James in April alleging illegal gambling operations. The CFTC recently intervened to allow Kalshi to continue operating despite the state’s legal challenges.
The Council’s letters include over 60 questions, with a 14-day deadline for responses. The scrutiny reflects broader concerns about the rapid growth of prediction markets and their compliance with state regulations.