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New York City Council Speaker Julie Menin announced that the Council has begun an investigation into prediction market platforms, focusing on “their marketing and advertising practices in the city, including potentially false, deceptive, or abusive marketing tactics, with particular concern for marketing directed towards young people.”
Menin sent letters to Kalshi, Polymarket, Coinbase, and Gemini Titan, asking them to provide information about their marketing practices that reach New Yorkers. As part of its investigation, the Council will examine allegations that Polymarket used or allowed social media influencers to entice young adults to bet on “event contracts” through false and deceptive marketing, including undisclosed influencer marketing, videos depicting non-existent trades on websites designed to appear similar to Polymarket, fictitious depiction of profitable wagers that actually would have generated losses, and the promotion of insider trading.
Menin indicated that the purpose of the investigation is to determine whether additional consumer protection legislation, enforcement, public education campaigns, health measures, and funding are necessary to protect New York City consumers from abusive marketing.
In her announcement of the investigation, Menin said, "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything. We refuse to let New Yorkers, especially our young people, become collateral damage. As a regulatory attorney and the former Commissioner of Consumer Affairs, I take consumer protection extremely seriously. I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms.”
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