New York City Council Announces Investigation into 'Aggressive Marketing Practices' in Prediction Markets

cryptonews.ruPublicado a 2026-08-12Actualizado a 2026-08-12

Resumen

The New York City Council has launched an investigation into prediction market companies to determine if they use influencers and "false and deceptive marketing" to attract young people. Council Speaker Julie Menin sent letters to companies including Kalshi, Polymarket, Coinbase, and Gemini Titan regarding their aggressive marketing practices. The investigation will assess whether additional measures, such as legislation, public education, or enforcement, are needed. Council member Shekar Krishnan, chair of the oversight committee, criticized such apps for uncontrolled growth, alleging they lure youth and minors with misleading tactics. This probe adds to the ongoing regulatory conflict over prediction markets, where some state gambling regulators view sports-related contracts as illegal betting, while the federal Commodity Futures Trading Commission (CFTC) considers them swaps under its jurisdiction. In response to inquiries, a Coinbase representative stated the company provides access to federally regulated markets overseen by the CFTC and complies with all laws, while a Polymarket spokesperson said they look forward to discussing the matter with the City Council.

The New York City Council has launched an investigation into companies offering prediction market services to determine whether they used influencers to attract young people through "false and misleading marketing."

In a notice published on Wednesday, the City Council stated that Speaker Julie Menin had sent letters to the companies Kalshi, Polymarket, Coinbase, and Gemini Titan as part of an investigation into their "aggressive marketing" through the prediction markets of these platforms. Following the investigation, New York City authorities will decide whether additional measures against such marketing practices are needed, including legislative initiatives, public education, and law enforcement.

"Apps like Polymarket are expanding without any control," said City Council member Shekar Krishnan, chairman of the Committee on Oversight and Investigations. "Their unprecedented reach is explained by the fact that they lure young people and minors with misleading, and sometimes outright false, marketing tactics, and then squeeze them for everything they're worth."

The New York investigation is the latest step in a situation that many believe could escalate into a legal confrontation between state regulators and U.S. federal regulators over the offerings of prediction markets, including contracts related to sporting events. While many state gambling regulatory authorities argue that the companies are illegally offering sports betting, the Commodity Futures Trading Commission (CFTC) considers these transactions "swaps," falling under its jurisdiction as a regulator of commodity markets.

Cointelegraph reached out to Gemini for comment on the investigation but did not receive an immediate response. A Coinbase representative stated that the company "provides [its] clients with access to federally regulated prediction markets, supervised by the [Commodity Futures Trading Commission], and fully complies with applicable laws," while a Polymarket representative said the company "looks forward to discussing this matter with the New York City Council."

Related: Judge Pauses CFTC Case Against U.S. Service Member Over Prediction Market Bets

Preguntas relacionadas

QWhat is the New York City Council investigating regarding prediction market companies?

AThe New York City Council is investigating whether prediction market companies have used influencers to attract young people through 'false and misleading marketing' practices.

QWhich companies received letters from New York City Council Speaker Julie Menin as part of this investigation?

ACouncil Speaker Julie Menin sent letters to the companies Kalshi, Polymarket, Coinbase, and Gemini Titan as part of the investigation into their aggressive marketing on prediction markets.

QAccording to Council Member Shekar Krishnan, what is a key concern about how apps like Polymarket operate?

ACouncil Member Shekar Krishnan stated that apps like Polymarket 'lure young people and minors with misleading and sometimes downright false marketing tactics, and then squeeze every last penny out of them.'

QWhat is the potential regulatory conflict mentioned in the article surrounding prediction markets?

AThe article mentions a potential legal conflict between state and U.S. federal regulators. While many state gambling authorities say companies are illegally offering sports betting, the Commodity Futures Trading Commission (CFTC) considers these transactions 'swaps' falling under its jurisdiction.

QWhat was Coinbase's response to the investigation according to the article?

AA Coinbase spokesperson said the company 'provides [its] clients access to federally regulated prediction markets supervised by the [Commodity Futures Trading Commission] and fully complies with applicable laws.'

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