The New York City Council has launched an investigation into marketing practices by prediction market service companies. Cointelegraph reported on Aug. 12 that the council is examining whether prediction market platforms used false or deceptive influencer marketing that targeted young people.

Council Speaker Adrienne Adams sent letters to Kalshi, Polymarket, Coinbase and Gemini Titan to begin the inquiry. The council plans to determine whether these platforms engaged in "abusive marketing" and, if necessary, consider legislative, education and enforcement measures.

Shekar Krishnan, chair of the council's Committee on Oversight and Investigations, said apps such as Polymarket are expanding rapidly without controls. He criticised the services for drawing in users with deceptive or false marketing tactics aimed at young adults and minors.

The investigation comes as state governments and federal regulators clash over regulation of prediction markets in the United States. Several state gambling regulators view contracts linked to sporting events as effectively illegal sports betting, but the U.S. Commodity Futures Trading Commission says such trading falls under its jurisdiction.

The New York City Council plans to use the investigation to determine whether additional action is needed in how prediction market services advertise. Depending on the findings, discussions could follow on legislation, education and enforcement targeting marketing practices.