An article summarized by CNBC:
The New York City Council is investigating the marketing practices of prediction-market platforms including Polymarket, Kalshi, Coinbase and Gemini Titan. Council Speaker Julie Menin said the platforms may be using “false, deceptive, unconscionable, and objectionable marketing practices” to encourage consumers to bet on sports, politics, culture and other events.
The investigation was prompted in part by Wall Street Journal reporting that Polymarket's marketing made it appear that partnered content creators were winning bets when they were not actually using their own money. The Commodity Futures Trading Commission has also investigated Polymarket, which has since revised its marketing guidelines. The City Council is now examining whether similar practices are used across the prediction-market industry and plans to hold a hearing.
The probe is focused specifically on advertising practices, not whether prediction markets constitute illegal gambling under New York law. That issue is being addressed separately, as New York state is suing Kalshi, Coinbase and Gemini, while the companies argue they are federally regulated financial exchanges. Polymarket, Kalshi and Gemini are all headquartered in New York City, while Coinbase has announced plans to significantly expand its New York workforce.
