NYC Council Probes Prediction Market Ads and Minor Targeting

The New York City Council has opened an inquiry into the advertising methods of Polymarket, Kalshi, Coinbase, and Gemini Titan. Council Speaker Julie Menin initiated the review on August 11 to assess compliance with local consumer protection regulations and examine outreach to younger residents.

Scope of the Inquiry

Menin’s correspondence includes over sixty questions regarding each company’s New York operations and marketing strategies. The Council requires data covering the period from January 1, 2025, specifically requesting user counts, demographic breakdowns, and aggregate financial outcomes for local residents. A fourteen-day deadline was set for the firms to provide their responses.

Regulatory Authority and Policy Considerations

The review focuses on promotional channels, including influencer compensation and the success of campaigns aimed at attracting younger audiences. While the legislative body lacks the authority to file criminal charges, it retains the power to issue subpoenas and compel document disclosure. Lawmakers are currently evaluating several policy adjustments for the prediction market sector. Potential actions include new legislation, enhanced regulatory enforcement, public awareness initiatives, health-related safeguards, and modifications to public funding allocations.