Polymarket Faces Probe
NYC Council investigates alleged predatory marketing as platform hires 5 new execs ahead of $50B trading surge
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New York City Council Speaker Julie Menin sent letters to four companies with over 60 questions and gave them 14 days to respond.
NYC Council Speaker Julie Menin sent letters to four prediction market platforms with over 60 questions.
New York City Council Speaker Julie Menin sent letters to Polymarket, Kalshi, Coinbase, and Gemini Titan with over 60 questions and gave them 14 days to respond.
New York City Council Speaker Julie Menin sent letters to Polymarket, Kalshi, Coinbase, and Gemini Titan with over 60 questions and gave them 14 days to respond.
Story published. NYC Council investigates alleged predatory marketing as platform hires 5 new execs ahead of $50B trading surge
Polymarket is overhauling its marketing and building out its U.S. team ahead of fall events, including the NFL season and midterm elections, as it faces scrutiny over its promotional practices and a probe by the New York City Council into alleged predatory marketing practices by prediction market platforms.
The New York City Council is investigating four prediction market platforms, including Polymarket, Kalshi, Coinbase, and Gemini Titan, over alleged predatory marketing practices. The probe is examining allegations that Polymarket permitted social media influencers to entice young adults with false and deceptive marketing.
Polymarket has hired Travis VanderZanden as chief growth officer and four other senior officials, including Megan McGrath, Natalie Oblazny, Shana Bautista, and Paul Jordan. The company has also recruited compliance, surveillance, and regulatory specialists to establish its U.S. exchange as a credible regulated business separate from the international platform.
The Commodity Futures Trading Commission (CFTC) has opened an investigation into Polymarket's conduct after a Wall Street Journal investigation found that the platform paid online content creators to post videos that misrepresented their earnings from trades. Polymarket has spent several years outside the U.S. market after its 2022 CFTC settlement over operating an unregistered derivatives platform.
The NFL season and midterm elections are expected to drive a surge in prediction market activity, with prediction markets hitting a record $50.59 billion in trading volume in July across Kalshi, Polymarket, and Polymarket U.S., according to The Block data. Kalshi has turned sports trading into a huge growth engine, while Polymarket is still trying to translate the popularity of its international platform into a regulated U.S. exchange.
## What happens next As the investigation and scrutiny continue, Polymarket will need to navigate the regulatory landscape and establish itself as a credible player in the U.S. market. The company's ability to overhaul its marketing and build out its U.S. team will be crucial in determining its success in the coming months.
