Polymarket and several other prediction market platforms are in hot water again in New York City, this time over their fishiy marketing practices. The New York City Council announced Wednesday that it has opened an investigation into major prediction market exchanges, focusing on their advertising in the city and potentially false, deceptive, or abusive tactics, particularly those targeting young people. Council Speaker Julie Menin sent letters to Kalshi, Polymarket, Coinbase, and Gemini Titan requesting information about their marketing strategies. The Council is also planning a hearing on the issue. “Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything. We refuse to let New Yorkers, especially our young people, become collateral damage,” said Menin in a press release. “I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms.”
Prediction markets have exploded in popularity in recent years, especially around elections and sports. They let users essentially bet on real-world events by buying and selling contracts that pay out if a certain outcome happens. The Council said the investigation is meant to determine whether new consumer protection legislation, enforcement, public education campaigns, or health measures are needed to protect New Yorkers.
