{"id":2643601,"date":"2026-08-12T11:53:00","date_gmt":"2026-08-12T15:53:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-council-launches-investigation-into-prediction-markets\/"},"modified":"2026-08-12T11:57:12","modified_gmt":"2026-08-12T15:57:12","slug":"new-york-city-council-launches-investigation-into-prediction-markets","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-council-launches-investigation-into-prediction-markets\/","title":{"rendered":"New York City Council launches investigation into prediction markets"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-york-city-council-launches-investigation-into-prediction-markets%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2643601&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The New York City Council has initiated an investigation into four major prediction market platforms-Kalshi, Polymarket, Coinbase, and Gemini-regarding potential deceptive or abusive marketing practices aimed at young people.City Council Speaker Julie Menin sent notices requesting details on their marketing strategies, amid concerns over the lack of consumer protections compared to traditional gambling regulations. <\/p>\n<p>The inquiry follows reports that some platforms may have used social media influencers to promote fake bets and attract younger users, raising questions about industry practices. while the council lacks criminal enforcement power, it aims to assess whether additional protections or legislation are necessary to safeguard consumers.<\/p>\n<p>This investigation occurs concurrently with a lawsuit by New York Attorney General Letitia James against Kalshi, Coinbase, and gemini, alleging illegal operation of gambling platforms, prompting criticism from the Commodity Futures Trading Commission (CFTC), which defends its jurisdiction.The legal debate centers on whether prediction markets should be regulated as derivatives or gambling. Kalshi emphasizes that its trading model differs from traditional sports betting, functioning more like a stock exchange where users trade contracts directly with each other.<\/p>\n<p>The situation highlights ongoing tensions between state and federal regulators over the classification and regulation of prediction markets, with potential major legal battles expected in the future.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/new-york\/\" data-type=\"post_tag\" data-id=\"61\">New York<\/a> City Council has opened an investigation into four major prediction market platforms, alleging they may be using false, deceptive, or abusive marketing tactics to target young people.<\/p>\n<p class=\"wp-block-paragraph\">City Council Speaker Julie Menin sent letters to Kalshi, Polymarket, Coinbase, and Gemini notifying the companies of the investigation and requesting information about their marketing practices.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4684194\/new-york-investigation-prediction-market-betting-wager-deceptive-marketing\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>New York launches investigations into four major prediction market companies<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4684208\/xavier-becerra-california-settle-paramount-warner-bros-lawsuit\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Xavier Becerra urges California to settle Paramount-Warner Bros. lawsuit ahead of trial<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/immigration\/4683134\/airlines-talking-ice-tsa-uptick-illegal-immigrant-arrests-airports\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>US airlines talking with ICE and TSA amid uptick in illegal immigrant arrests at airports<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">According to a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/council.nyc.gov\/press\/2026\/08\/12\/3215\/\">City Council memo<\/a>, the inquiry will examine whether New York consumers need additional protections from possibly abusive marketing by prediction market platforms.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">\u201cPrediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything,\u201d Menin said. \u201cWe refuse to let New Yorkers, especially our young people, become collateral damage.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Menin said the council would use its \u201cfull power\u201d to protect New Yorkers from deceptive and predatory marketing. While the council does not have the authority to bring criminal charges, the investigation will examine whether additional consumer protection legislation, enforcement, public education campaigns, health measures, or funding are needed to protect city residents.<\/p>\n<p class=\"wp-block-paragraph\">The letters also cited a June <em>Wall Street Journal<\/em> <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.wsj.com\/business\/media\/polymarket-social-media-bets-prediction-market-441cdeb5\">report<\/a> alleging that Polymarket used or allowed social media influencers to advertise fake bets in an effort to attract young users to the platform. According to the report, college-aged influencers placed bets that generated large payouts, though the markets were allegedly not real.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cUnderstanding whether such marketing practices are prevalent within the prediction market industry is critical to determining what legislation, regulations, and programs are needed,\u201d the council said. \u201cThe fact that key marketing restrictions and consumer protections that govern casinos and online sports betting do not currently restrain prediction markets adds to the necessity and urgency of the Council\u2019s inquiry.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The investigation comes as New York Attorney General Letitia James <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4670589\/new-york-kalshi-lawsuit-gambling-operation-without-permit\/\">is separately suing<\/a> Kalshi, Coinbase, and Gemini, alleging the companies are operating illegal gambling platforms in the state. There is no ongoing litigation against Polymarket in New York.<\/p>\n<p class=\"wp-block-paragraph\">The lawsuit has drawn a sharp response from the Commodity Futures Trading Commission, which oversees federally regulated derivatives markets. CFTC Chairman Michael Selig criticized the state\u2019s legal challenge and pledged that the agency would \u201ccontinue to defend its jurisdiction.\u201d<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cRather than seek reasoned answers from the courts, Letitia James and New York seek to force an unprecedented, sudden shutdown of prediction markets nationwide,\u201d Selig said on social media following the lawsuit.<\/p>\n<p class=\"wp-block-paragraph\">At the center of the broader legal battle is whether prediction market event contracts qualify as \u201cswaps\u201d or other derivatives under the Commodity Exchange Act, placing them under the CFTC\u2019s jurisdiction, or whether states can regulate them as gambling.<\/p>\n<figure class=\"wp-block-image size-large\">Advertisements by the company Kalshi predict a victory for Zohran Mamdani in the New York City mayoral election before the votes are counted and polls close on Tuesday, Nov. 4, 2025, in New York. (AP Photo\/Olga Fedorova)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/08\/localimages\/AP25308710677808.jpg?w=696&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">Advertisements by the company Kalshi predict a victory for Zohran Mamdani in the New York City mayoral election before the votes are counted and polls close on Tuesday, Nov. 4, 2025, in New York. (AP Photo\/Olga Fedorova)<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">Kalshi and other prediction market companies argue that their platforms differ structurally from traditional sports betting because users trade contracts against one another rather than wagering against a house.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cKalshi is different from sports betting from the way our exchange operates on a structural level, which has significant effects on our products and business model,\u201d a Kalshi spokesperson told the <em>Washington Examiner<\/em>. \u201cSports betting operates like a casino, where everyone is playing against the \u2018house.\u2019 Kalshi works like the stock market, with customers trading against other customers. Unlike a casino, Kalshi doesn\u2019t win when our customers lose.\u201d<\/p>\n<p class=\"wp-block-paragraph\">On Tuesday, the CFTC announced that it was exercising emergency authority to order Kalshi to \u201ccontinue to operate in accordance with the Commodity Exchange Act\u2019s Core Principles\u201d as litigation plays out following James\u2019s complaint.<\/p>\n<p class=\"wp-block-paragraph\" style=\"text-transform:uppercase\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4597406\/prediction-market-lawsuits-court-battles\/\">Prediction market lawsuits set stage for major court battles<\/a><\/strong><\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cThe New York State Attorney General does not set the rules for national derivatives markets,\u201d CFTC spokeswoman Brooke Nethercott said. \u201cThat\u2019s the Congressionally mandated role of the CFTC. As stated in the order, Kalshi is required to operate as normal to maintain market integrity and stability.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Kalshi, Polymarket, and Gemini are all headquartered in New York City. Coinbase is headquartered in Texas but announced earlier this year that it plans to expand its New York workforce to more than 1,000 employees.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NYC investigates prediction platforms over deceptive marketing targeting youth<\/p>\n","protected":false},"author":4195,"featured_media":2643602,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP25308710677808.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[5269,84040,32120,5894,44418],"class_list":["post-2643601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-city","tag-council-investigation","tag-new-york","tag-politics","tag-prediction-markets"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP25308710677808.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2643601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/4195"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2643601"}],"version-history":[{"count":2,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2643601\/revisions"}],"predecessor-version":[{"id":2643604,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2643601\/revisions\/2643604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2643602"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2643601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2643601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2643601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}