New York Attorney General Letitia James has issued a consumer alert warning of the risks posed by prediction markets, as Polymarket steps up its public relations activities with the launch of a free grocery store in the city.
The warning from AG James advises consumers that “online platforms offering bets masquerading as event contracts” operate without consumer protection and without the supervision of the New York Gaming Commission, “putting New Yorkers at significant financial risk”.
“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” said Attorney General James. “It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
The warning came as prediction markets provider Polymarket announced the upcoming opening of The Polymarket in New York City.
The Polymarket pop-up grocery store will open on February 12 for a limited time, giving New Yorker’s access to free groceries.
“The Polymarket is fully stocked. No purchase required,” said the company in an announcement Tuesday. “We’re open to all New Yorkers. A real, physical investment in our community.
“As a part of our mission of giving back to the city we call home, we’ve donated $1 million to Food Bank For NYC to help fight food insecurity across all five boroughs.”
Rival prediction markets platform Kalshi conducted a similar PR exercise on Tuesday when it gave away $50 worth of free groceries to each shopper at Westside Market in Manhattan.