The New York City Council opened a formal investigation into four prediction market platforms on Aug. 11. Council Speaker Julie Menin sent letters to Polymarket, Kalshi, Coinbase, and Gemini Titan asking how each complies with the city’s consumer protection laws.

The inquiry centers on advertising practices and whether any platform’s marketing reached underage users. It adds a new front to New York’s broader fight with the prediction market industry, on top of an active state lawsuit and a federal court battle.

Menin’s letter to Polymarket raised concerns about the company’s promotional videos and possible fake trades. She cited reports alleging Polymarket worked with marketing agents and influencers to reach young adults, and potentially minors, through misleading ads.

Updated on 24 August 2026

Shirley SimmonsNews Editor

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What the Council Is Asking Each Platform

The table below breaks down the Council’s focus for each company and how each has responded so far.

Source: Letters from NYC Council Speaker Julie Menin, reviewed by the Wall Street Journal, Aug. 11, 2026.

Menin gave all four companies 14 days to respond.

More Than 60 Questions on Users and Revenue

The letters ask each platform for data going back to Jan. 1, 2025. Requested details include the number of New York City users, customer age and demographic breakdowns, and how much city residents have won or lost.

The Council also wants specifics on influencer marketing, including how much each platform pays social media influencers and how well that marketing has performed at reaching younger users.

The Council cannot file criminal charges, but it can issue subpoenas and compel companies to produce documents. Menin said lawmakers are weighing legislation covering enforcement, public education, and how public funds get directed toward the issue.

Part of a Wider New York Crackdown

The Council’s inquiry lands alongside a separate, ongoing legal fight between New York State and Kalshi. Attorney General Letitia James sued Kalshi on July 31, arguing the platform runs an unlicensed gambling business in the state.

Kalshi argues its contracts count as federally regulated derivatives under the Commodity Exchange Act, putting them outside state authority. The Commodity Futures Trading Commission backed that position on the same day as the Council’s inquiry, ordering Kalshi to keep operating despite New York’s shutdown effort.

Kalshi and the CFTC have also sued New York in federal court. Unlike those cases, the Council’s investigation focuses on consumer protection and marketing rather than whether prediction markets count as gambling under state law.

What This Means for Prediction Market Users

New York’s overlapping legal fights show how unsettled prediction market regulation still is across the country. Rules can shift quickly, and a platform operating in one state today may face restrictions there tomorrow.

Anyone using a prediction market platform should check its current legal status in their state before trading, since availability and oversight vary and can change with little notice.

Marketing claims, bonus offers, and influencer promotions deserve extra scrutiny on any platform under active regulatory review. Read the platform’s actual terms rather than relying on ads or social media posts.