The New York City Council is examining marketing practices of prediction-market platforms Kalshi, Polymarket, Coinbase, and Gemini Titan amid claims of misleading and predatory advertising, with a focus on consumer protection for New Yorkers.

Council Speaker Julie Menin has sent detailed information requests—over 60 questions with a 14-day window—to probe marketing claims, advertising integrity, and potential needs for new consumer protections or public education.

Polymarket, Kalshi, Coinbase, and Gemini Titan face scrutiny as the council seeks to determine whether their marketing may cross legal boundaries or require stricter oversight.

Prediction markets have grown into a multi-billion-dollar sector, spanning politics, sports, and entertainment, with sports wagers remaining a central component.

Polymarket operates across diverse topics and has drawn a large base of traders amid rapid sector growth, while Coinbase’s involvement in prediction markets has been expanding as part of its strategic trajectory.

Coinbase’s current exposure to prediction-market revenue is smaller than Robinhood’s, but its growth in this area is viewed as strategically significant despite modest near-term earnings impact.

Regulatory action from the CFTC has been ongoing, including disputes over jurisdiction and state-level lawsuits in the evolving landscape for prediction markets.

The broader regulatory context includes federal oversight by the CFTC, debates over whether these markets are securities, swaps, gambling, or something else, and potential legislation like the Prediction Markets Are Gambling Act.

State and federal attention centers on whether prediction markets violate gambling laws, with the CFTC asserting commodities jurisdiction while some states view them as illegal sports betting, fueling regulatory tensions.

The investigation comes amid regulatory friction at different levels, with concerns about consumer harms, insider trading risks, and the need for regulatory clarity.

Responses from affected platforms indicate engagement: Polymarket says it will cooperate, while Coinbase emphasizes compliance and Kalshi has not commented at press time; Gemini did not provide a statement.

While broader industry context includes strong quarterly results for Circle and ongoing crypto-market dynamics, these updates are auxiliary to the NYC Council probe.