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New York City Opens Probe Into Polymarket’s Marketing Practices

By  |  August 12, 2026
Polymarket CFTC prediction markets

New York City lawmakers are investigating Polymarket and raising questions about marketing practices across the fast-growing prediction-market industry, adding a new front to the regulatory pressure facing platforms that let users trade contracts tied to real-world events.

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    City Council Speaker Julie Menin accused major prediction-market companies of using aggressive and potentially deceptive tactics to attract younger users, according to reporting by Reuters. The inquiry was disclosed in an Aug. 11 letter from Menin to Polymarket Chief Executive Officer Shayne Coplan.

    The letter also identified Kalshi, Coinbase and Gemini Titan in connection with alleged marketing practices aimed at younger customers, Reuters reported. The council’s scrutiny centers on allegations involving social-media promotions, influencers and other content used to draw users to prediction markets.

    Prediction-market platforms allow customers to take positions on the outcomes of events spanning politics, sports and entertainment. The industry has grown quickly, according to Reuters, while drawing criticism from those who argue that the products resemble gambling and may create risks involving compulsive behavior or trading on nonpublic information.

    Menin’s letter, citing news reports, alleged that Polymarket worked with marketing firms and social-media personalities on advertising that targeted young adults and potentially minors and that some of the promotional material was false or misleading, Reuters reported.

    Read more: Spain Blocks Polymarket and Kalshi as Scrutiny of Prediction Markets Spreads

    Among the allegations outlined in the letter were claims that influencers received undisclosed payments and that promotional videos depicted simulated trades on websites designed to resemble Polymarket. The letter also alleged that losing positions were portrayed as profitable ones and that some material encouraged insider trading, according to Reuters.

    Polymarket said it intends to cooperate with the inquiry. A company spokesperson told Reuters that the platform looked forward to engaging with the New York City Council.

    The investigation comes as prediction markets confront a broader dispute over who has authority to police the business. Polymarket is overseen by the U.S. Commodity Futures Trading Commission, Reuters reported. Earlier in 2026, the CFTC sued New York, arguing that state efforts to apply gambling laws to prediction-market companies intruded on federal jurisdiction.

    That federal-state conflict could become increasingly important as event-contract platforms expand into areas such as sports. The City Council inquiry is not, based on Reuters’ report, an antitrust enforcement action. Rather, it focuses on alleged marketing conduct and consumer risks. Still, it adds to the broader regulatory scrutiny surrounding a rapidly expanding group of financial-technology companies and the competitive practices they use to acquire customers.

    The council is seeking information from Polymarket about its relationships with social-media platforms, influencers and other content creators used in marketing campaigns, according to Reuters. Polymarket was given 14 business days to respond to the council’s questions.

    Source: Reuters