A Kalsi billboard displaying predictions for the New York mayoral election in Times Square, New York, USA, on Tuesday, November 4, 2025.
Adam Gray | Bloomberg | Getty Images
The New York City Council is investigating the marketing practices of predictive market platforms, Council President Julie Menin’s office announced Wednesday.
In a letter to four prediction market platforms — Polymarket, Kalshi, coinbase and gemini titan — Menin wrote that the council had been investigating allegations of “false, deceptive, unconscionable and offensive marketing practices” by the event contract deal for several months.
“Prediction markets actively encourage consumers to bet and place bets on everything from sports, politics, culture, weather, and more,” Menin said in a statement. “I intend to use the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms.”
In his letter, Menin cited a Wall Street Journal investigation that alleged Polymarket ran a misleading marketing campaign. The magazine said in a June article that Polymarket was making it appear as if the content creators it works with were winning on the platform, even though they were not actually using their own funds. The magazine’s report prompted an investigation by the Commodity Futures Trading Commission, the federal regulator of prediction markets.
CNBC reported Tuesday that Polymarket has taken steps to revamp its marketing strategy through updated and streamlined guidelines for its staff and the content creators it works with.
In his letter to the platform, Menin added that the council is investigating whether such advertising strategies are being used by other prediction market companies. The memo attached to these letters says the allegations against Polymarket demonstrate an urgent need to determine whether legal or other policy changes are needed. Menin’s office added that the council will hold a public hearing on the issue.
The memo also outlined the nature of the investigation, making it clear that the investigation would not examine whether the exchange of event contracts violated New York state gaming law.
New York State currently has active litigation against Kalsi, Coinbase, and Gemini, alleging that these companies operate illegal gambling operations. These platforms claim to be federally regulated financial exchanges and not subject to state gaming laws. New York State currently has no lawsuit against Polymarket.
Calci, Polymarket, and Gemini are all headquartered in New York City. Coinbase officially operates in Texas, but earlier this year it announced plans to expand its total workforce in New York to more than 1,000 people.
“We look forward to working with the New York City Council on this issue,” a Polymarket spokesperson said in a statement.
When asked for comment by CNBC, a Coinbase spokesperson said, “Coinbase provides customers with access to a federally regulated prediction market overseen by the CFTC and is in full compliance with applicable laws.”
Kalsi spokeswoman Dani Lever said in a statement that the company “looks forward to educating the New York City Council about our business model and practices.”
Gemini did not respond to requests for comment.
Disclosure: CNBC and Kalsi have a commercial relationship that includes customer acquisition and minority ownership.
