The New York City Council has launched an investigation into four prediction markets due to claims of misleading advertising. The companies, namely Gemini Titan, Kalshi, Polymarket, and Coinbase, face scrutiny for their marketing tactics. Three of these firms are based in New York, while Coinbase is headquartered in Texas.

“Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and more,” stated New York City Council Speaker Julie Menin. “We refuse to let New Yorkers, especially our young people, become collateral damage.” The investigation emerges as photos show a Polymarket ad at a subway station in New York on February 5, 2026. The imagery highlights the platforms’ visibility in public spaces.

Menin has requested details from these platforms about their marketing approaches within the city. These markets offer users the chance to bet on various events, including sports and political elections. A Wall Street Journal investigation in June revealed that Polymarket paid online influencers to post misleading videos about their trade earnings. In response to these findings, Polymarket pledged to conduct an audit of its advertising content.

The New York City Council’s investigation will also address allegations that Polymarket targets young adults with deceptive marketing strategies. In a statement, Polymarket expressed its willingness to discuss these concerns with the City Council.

The other companies being investigated have so far not commented on the situation. This probe underscores a broader conflict over the regulatory authority of prediction markets between state and federal governments.

Several states, including New York, have filed lawsuits against these platforms. New York’s Attorney General Letitia James has accused Coinbase, Gemini Titan, and Kalshi of conducting illegal gambling activities contrary to state regulations. Additionally, the Commodity Futures Trading Commission, a federal body overseeing prediction markets, has taken legal action to prevent states from imposing stricter regulations. The agency maintains that Congress grants it sole jurisdiction over derivative market regulations. Despite this, legal experts indicate that jurisdiction over sports betting, which drives much of the trading volume, remains uncertain.