NYC Council targets Polymarket, Kalshi over youth-focused ads
The New York inquiry adds another regulatory challenge for Polymarket and its peers.
New York City is investigating Polymarket and other prediction market companies for alleged marketing practices that exploit young traders.
In a press release issued on August 12, Council Speaker Julie Menin accused the platforms of potentially targeting young adults and minors through deceptive advertising and named Kalshi, Coinbase and Gemini Titan alongside Polymarket.
The letter alleges that Polymarket paid influencers without disclosure, used videos showing fabricated trades on websites designed to resemble its platform, portrayed losing wagers as successful trades and encouraged insider trading.
Menin requested information on how Polymarket uses social media personalities, influencers and other content creators to market its products.
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According to officials, the inquiry is particularly urgent because prediction markets are becoming increasingly popular while facing fewer marketing restrictions than casinos and online sports betting.
The Council has been examining concerns around the rapidly growing industry for months and plans to assess whether stronger consumer protections, enforcement, education campaigns or health measures are needed.