New York Council sends letters to Kalshi, Polymarket in prediction markets ad probe

New York City Council Speaker Julie Menin issued letters to Kalshi, Coinbase, Polymarket, and Gemini Titan, informing each company that the council has begun investigating allegations of “false, deceptive, unconscionable, and objectionable marketing practices.” 

The announcement comes right as the city’s fight with prediction markets made headway with both a major lawsuit and a federal emergency order issued within two weeks of each other.

What the Council says Kalshi and Polymarket did 

The investigation is set to cover advertisement tactics used by these organizations, such as undisclosed influencer marketing, videos showing trades on false websites made to look like Polymarket, showcasing winning bets that actually lost money, and finally, promoting insider trades. 

This adds to the Wall Street Journal investigation published in June, which found that Polymarket made use of social media influencers to pretend they made profits from bets they did not fund with their money. 

Following the investigation, CNBC reported that Polymarket has begun changing its marketing plan after the Commodity Futures Trading Commission (CFTC) opened a separate investigation into the organization. 

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