NYC Council probes Polymarket over alleged predatory marketing practices

New York City Council members are turning their attention to Polymarket, the crypto-native prediction market that has become a lightning rod for regulatory debate. The probe centers on allegations that the platform engaged in predatory marketing practices, including paying influencers to promote content showing fake winning bets to attract new users. The influencer playbook that backfired The WSJ investigation, published in June 2026, uncovered a marketing operation in which Polymarket allegedly paid influencers up to $3,000 per month to create videos showcasing what appeared to be winning bets on the platform. The catch: the bets were fabricated or simulated. Had someone actually placed equivalent wagers, they would have lost roughly $166,000. In total, 118 such videos were identified. Polymarket responded to the WSJ findings by announcing plans to audit its promotional content. Lawsuits and legislative pushback On June 26, 2026, the National Association of Consumer Advocates filed a lawsuit against Polymarket, CEO Shayne Coplan, and CMO Matthew Modabber. The suit alleges that the undisclosed paid endorsements violated D.C. consumer protection laws, arguing that the influencer cam...