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New York City Council has opened a legislative inquiry into Kalshi, Polymarket, Coinbase Global and Gemini’s Titan prediction market platform, adding fresh scrutiny to how event-contract platforms advertise and whether their products can contribute to compulsive wagering.
Council Speaker Julie Menin sent questions to the four companies as part of a review of whether city laws adequately protect residents from false or deceptive marketing. The firms were given 14 days to respond, and the council plans to hold public hearings.
What New York City is asking the firms to explain
According to the inquiry, the council wants information dating back to Jan. 1, 2025, including user numbers in New York, customer age and demographic data, and how much New York City residents have won or lost on the platforms.
The council also asked how the companies market to New Yorkers, how much they pay influencers, and how effective that marketing has been in attracting younger users. In its letter to Polymarket, the council said it is examining allegations about industry marketing practices and related social harms to city residents.
Polymarket said it looks forward to engaging with the council.
Part of a bigger fight over prediction markets
The inquiry lands in the middle of a broader legal and regulatory dispute over whether prediction market event contracts are financial instruments or illegal gambling products.
The companies, along with the Commodity Futures Trading Commission, argue that event contracts fall under federal oversight as financial instruments. States including New York have challenged that view in court, alleging the platforms are operating as illegal, unlicensed gambling businesses.
Kalshi is already in a separate fight with New York state. The CFTC ordered Kalshi to continue operating in New York despite the state’s effort to shut down its operations. The CFTC is also conducting an investigation of Polymarket.
What players should watch next
For users, the immediate issue is not a shutdown order from New York City, but a fact-finding process focused on advertising, consumer protections and possible harm to vulnerable users. The next key marker is the companies’ 14-day response window, followed by planned public hearings that could shape future city policy proposals.
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Source: As reported by Bloomberg and Nicola M. White.
