AG takes a stand
As sports betting marketing hits overdrive in the run-up to the Super Bowl, the New York Attorney General has taken a bold stand on prediction markets, warning her constituents of the dangers posed by the vertical.
bets masquerading as ‘event contracts.’
NY AG Letitia James’s office issued a consumer alert on Tuesday, warning New Yorkers to be wary of prediction markets, branding them “online platforms offering bets masquerading as ‘event contracts.’”
AG James shared the press release on X, stating the likes of Kalshi and Polymarket operate without consumer protection or state regulation and, as such, leaves New Yorkers at “significant financial risk:”
In her statement, James said New Yorkers needed to know about the dangers of prediction markets before they get caught up in Sunday’s Super Bowl excitement.
More threats
Like many other state regulators, the New York Gaming Commission has no jurisdiction over federally protected prediction markets. James’ pre-Super Bowl alarm hones down on that industry-dividing point, stating that prediction markets don’t have the “same consumer protections” as state regulated products.
The NY AG told New Yorkers any betting platform not licensed by the NYGC “may be operating illegally” in the Big Apple.
In addition to her hard-hitting words, James is also threatening potential civil action against prediction market firms, stating that the “conduct, advertisement, and promotion of unlicensed sports wagering” breaks state gambling laws and could be subject to civil and criminal liability.
On the same day AG James delivered her denouement of the vertical and warned its firms against targeting New Yorkers, however, Kalshi did exactly the latter.
giving out free groceries in Westside Market on Broadway
The Tarek Mansour-owned brand on Tuesday started giving out free groceries in Westside Market on Broadway as part of an outdoor activation ad campaign intended to educate state citizens about the polarizing vertical.
Parting shot
The NY Attorney’s Office statement also warned New Yorkers that banks have been reporting a rise in financial risks attached to prediction markets “including the overextension of credit and rising loan defaults.”
“Treat these prediction markets as high-risk” the AG concluded, adding they offer: “no guarantee of returns, and no guarantee of access to your funds.”
