The New York City Council has launched an investigation into Kalshi, Polymarket, Coinbase, and Gemini Titan, focusing not on the legality of the contracts themselves, but on whether their advertising, promotion, and customer acquisition methods in New York involve misleading, deceptive, or诱导性 marketing practices.
The investigation focuses on reaching younger users.
New York City Council Speaker Julie Menin stated that these platforms actively encourage users to place bets on events such as sports, politics, culture, and weather, which may harm New York residents, particularly young people. The City Council has requested that the four companies provide information regarding their marketing practices in New York.
The official stated that the platforms named were selected based on public reports and existing information, as well as the reach of these advertisements among New York City residents. The City Council also indicated that the scope of subsequent investigations may expand to include other prediction market operators.
Platform Response and Investigation Scope
Coinbase stated that it provides access to prediction markets regulated by the U.S. Commodity Futures Trading Commission (CFTC) and emphasized that the company complies with applicable laws. Polymarket said it looks forward to engaging with the council.
At the time of this report, Kalshi and Gemini Titan had not immediately responded to media requests for comment. New York authorities also emphasized that this investigation focuses on advertising and promotional activities and does not directly determine whether prediction market contracts are legally valid or invalid.
State and federal authorities continue to clash over jurisdiction.
This survey is being released as prediction markets face broader regulatory jurisdictional disputes. New York State Attorney General Letitia James has sued Coinbase, Gemini Titan, and Kalshi, alleging that these platforms operate illegal gambling businesses under state law.
Meanwhile, the CFTC opposes state attempts to restrict prediction markets, arguing that federal law grants it exclusive regulatory authority over derivatives. However, legal experts note that the extent of the CFTC’s jurisdiction over sports-related contracts has not yet been fully clarified.
NFL preseason regulatory scrutiny intensifies
The timing of the survey has also drawn attention. As the NFL’s new season and the 2026 U.S. midterm elections approach, these periods are typically the most active trading windows for prediction markets. Kalshi, Polymarket, and Gemini are all based in New York, while Coinbase is headquartered in Texas and plans to expand its New York workforce.