NYC Probes Polymarket, Kalshi, Coinbase, and Gemini Over Prediction Market Ads

Industry Pulse News Desk · 2026-08-13

New York City consumer protection regulators have given four major trading platforms 14 days to respond to allegations of deceptive advertising practices.

New York City officials have issued formal notices to four prominent trading platforms—Polymarket, Kalshi, Coinbase, and Gemini—over concerns that their promotional materials for prediction markets may be misleading to consumers. The companies have been given 14 days to address the municipal inquiry.

The regulatory scrutiny follows a rapid expansion in event-based trading, where investors place financial wagers on the outcomes of future events ranging from political elections to economic indicators. Municipal regulators are investigating whether the marketing materials used by these firms accurately convey the financial risks associated with speculative trading products.

Under the terms outlined by city officials, the four targeted companies must submit documentation detailing their advertising campaigns, risk disclosure practices, and compliance measures. Failure to address the city's concerns within the two-week window could result in enforcement actions or financial penalties under local consumer protection laws.

Prediction markets have experienced record trading volumes in recent months, drawing increased interest from retail investors and regulatory bodies alike. While federal regulators oversee aspects of derivatives and commodity trading, local authorities maintain jurisdiction over commercial advertising and consumer protection within the city.

Representatives for the four firms have not yet publicly detailed their planned responses to the municipal inquiry. The investigation marks one of the most prominent municipal enforcement actions to date targeting event-based trading platforms.