The New York City Council is opening an investigation into the marketing tactics of four prediction market platforms, raising concerns over what it describes as the “predatory” and “potentially false, deceptive, or abusive” methods of key players in the multibillion-dollar emerging industry.
New York City Council Speaker Julie Menin sent letters to the four organizations — Kalshi, Polymarket, Coinbase and Gemini Titan — on Tuesday, giving them 14 days to provide information about their advertising practices that reach New Yorkers and encourage more bets on future events.
One of the seven-page letters addressed to a Polymarket executive lists more than three dozen questions, according to a copy of the letter reviewed by The Washington Post. The questions include inquiries about whether Polymarket targeted social media content to people under 21 years of age, reviewed the accuracy of claims regarding profitability, authorized specific language to encourage more trades, and paid social media influencers to promote the platform and its events.
In the letter, Menin said the council aims to determine whether more legislation, enforcement, programs and funding are needed to protect New York consumers.
A spokesperson for Polymarket said the company “look[s] forward to engaging with the New York City Council on this matter.” A Coinbase spokesperson said “Coinbase offers our customers access to federally regulated prediction markets overseen by the CFTC, and fully complies with applicable laws.” The other platforms did not immediately provide comment.
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The post NYC Council investigates ad tactics for prediction markets Kalshi, Polymarket appeared first on Washington Post.
