New York City Council Speaker Julie Menin said, "I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms." The inquiry examines whether current city laws adequately protect residents from false, deceptive, or unconscionable marketing by these platforms. The council is investigating allegations that Polymarket conspired with influencers and marketing agents to target young adults and potentially minors with false and deceptive advertising. A memo attached to the letters stated that the inquiry is not exploring whether event contract exchanges violate New York state gambling laws.

She said, "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything." She added, "We refuse to let New Yorkers, especially our young people, become collateral damage." The council requested information from the platforms dating back to January 1, 2025, including the number of users in New York State, customer age and demographics, and the amount of money New York City residents have won or lost.

A Coinbase spokesperson said, "Coinbase offers our customers access to federally regulated prediction markets overseen by the CFTC, and fully complies with applicable laws." A Polymarket spokesperson said, "We look forward to engaging with The New York City Council on this matter." Kalshi and Gemini did not immediately respond to requests for comment regarding the inquiry.

The platforms and the Commodity Futures Trading Commission argue that event contracts are financial instruments fundamentally different from gambling and should fall under federal oversight. The commission ordered Kalshi to continue operating in New York despite the state’s effort to shut down its operations on August 11, 2026. Kalshi, Polymarket, and Gemini are headquartered in New York City, while Coinbase officially operates out of Texas. Gemini Space Station, Inc. is a Nevada corporation.

In June, it was reported that Polymarket hired social media creators to film themselves making fake profitable trades to attract users to the platform. The council plans to hold public hearings on the topic of prediction market regulation and marketing practices. This follows earlier legislative action, as the New York City Council scheduled a stated meeting on June 11, 2026, to discuss Int 0951-2026. The legislation would ban elected officials and other high-ranking New York City officials from making bets on events in prediction markets when they hold insider information about the event.

Why It Matters

The inquiry shows a regulatory conflict between local consumer protection efforts and federal oversight claims by prediction market operators. With Kalshi, Polymarket, and Gemini based in New York City, the council’s focus on marketing practices targets firms with local presence. The investigation occurs alongside a lawsuit filed by New York Attorney General Letitia James on April 21, 2026, against Coinbase and Gemini for allegedly running illegal gambling operations.

The scope of the inquiry covers user data and financial outcomes for New York residents, aiming to determine if existing laws prevent deceptive marketing. The council’s plan for public hearings suggests potential future regulatory changes beyond the insider trading ban for officials. The response from these platforms within the 14-day deadline will shape the next phase of local scrutiny.

Timeline

On January 1, 2025, the council requested information from the platforms dating back to January 1, 2025, including the number of users in New York State, customer age and demographics, and the amount of money New York City residents have won or lost. On April 21, 2026, New York Attorney General James sued Coinbase Financial Markets, Inc. (Coinbase) and Gemini, Titan LLC (Gemini) for illegally running gambling operations in New York through their so-called 'prediction market' platforms. The lawsuit alleged that these platforms constituted illegal, unlicensed gambling operations and sought court orders requiring the companies to pay fines, forfeit illegal profits, and pay restitution to customers.

The New York City Council scheduled a stated meeting on June 11, 2026, to discuss Int 0951-2026, which would ban elected officials and other high-ranking New York City officials from making bets on events in prediction markets when they hold insider information about the event. On June 25, 2026, the Commodity Futures Trading Commission published a request for comment on the extension of standard futures contracts to 24/7 trading and on perpetual contracts referencing physically delivered or storable energy commodities. On August 11, 2026, the Commodity Futures Trading Commission ordered Kalshi to continue operating in New York despite the state’s effort to shut down its operations.

On August 12, 2026, New York City Council Speaker Julie Menin said, "I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms." Also on August 12, 2026, the New York City Council launched a legislative inquiry into the advertising and marketing practices of Polymarket, Kalshi, Coinbase Global Inc. and Gemini Space Station Inc.’s prediction market platform, Titan. On that same day, she said, "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything." Also on August 12, 2026, Menin sent letters containing more than 60 questions to the four prediction market platforms.

What's New

Later reporting includes statements from New York City Council Speaker Julie Menin, who said, "I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms." Additional details note that on April 21, 2026, New York Attorney General James sued Coinbase Financial Markets, Inc. (Coinbase) and Gemini, Titan LLC (Gemini) for illegally running gambling operations in New York through their so-called 'prediction market' platforms. The lawsuit alleged that these platforms constituted illegal, unlicensed gambling operations.

A Coinbase spokesperson said, "Coinbase offers our customers access to federally regulated prediction markets overseen by the CFTC, and fully complies with applicable laws." Further reporting identifies that Kalshi, Polymarket, and Gemini are headquartered in New York City, while Gemini Space Station, Inc. is a Nevada corporation. The New York City Council's Int 0951-2026, which would ban elected officials and other high-ranking New York City officials from making bets on events in prediction markets when they hold insider information about the event, specifies that a covered individual shall not purchase, sell, or trade an event contract when such covered individual has non-public information regarding any element of the outcome of the event contemplated by such event contract.

The New York City Council scheduled a stated meeting on June 11, 2026, to discuss Int 0951-2026, which would ban elected officials and other high-ranking New York City officials from making bets on events in prediction markets when they hold insider information about the event. She also said, "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything." Also on August 12, 2026, Menin sent letters containing more than 60 questions to the four prediction market platforms.

How Sources Differ

Sources differ on the specific actions taken by New York City Council Speaker Julie Menin. One account states that she said, "I intend to harness the full power of the Council to protect New Yorkers from deceptive and predatory marketing practices by prediction market platforms." Another source notes that she sent letters containing more than 60 questions to the four prediction market platforms.

Regarding New York prediction market platforms, one source reports that on April 21, 2026, New York Attorney General James sued Coinbase Financial Markets, Inc. (Coinbase) and Gemini, Titan LLC (Gemini) for illegally running gambling operations in New York through their so-called 'prediction market' platforms. Another source indicates that she sent letters containing more than 60 questions to the four prediction market platforms.

On the topic of New York City Council prediction market regulations, one source details that Int 0951-2026 specifies that a covered individual shall not purchase, sell, or trade an event contract when such covered individual has non-public information regarding any element of the outcome of the event contemplated by such event contract. Another source simply states that she sent letters containing more than 60 questions to the four prediction market platforms.

Regarding the New York City Council's schedule, one source notes that the council scheduled a stated meeting on June 11, 2026, to discuss Int 0951-2026, which would ban elected officials and other high-ranking New York City officials from making bets on events in prediction markets when they hold insider information about the event. Another source states that she sent letters containing more than 60 questions to the four prediction market platforms.

Sources also differ on her statements. One records her saying, "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything." Another states she sent letters containing more than 60 questions to the four prediction market platforms. Additionally, one source quotes her saying, "We refuse to let New Yorkers, especially our young people, become collateral damage," while another notes she sent letters containing more than 60 questions to the four prediction market platforms.