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- The two prediction market companies declared free groceries for New York City residents
- Kalshi provided $50 worth of groceries per customer at NYC market, while Polymarket plans to launch a free supermarket in the city next week
- The announcements came on the same day New York Attorney General Letitia James warned New York consumers about prediction markets and sports event contracts
Two of the largest prediction market companies in the country have chosen New York City as a battleground….over free groceries.
Both Kalshi and Polymarket separately announced free grocery promotions for New York City residents. Kalshi provided $50 worth of free groceries per customer at a West Side market, while Polymarket announced “The Polymarket,” promoted as New York’s first free supermarket.
The grocery promotions were announced on the same day New York Attorney General Letitia James warned consumers and licensed sports betting operators to steer clear of prediction markets and sports event contracts.
New York City Grocery Wars
Kalshi kicked off the grocery promotions on Monday, Feb. 2, announcing it would provide $50 worth of groceries per customer on Tuesday, Feb. 3, from noon to 3 p.m. at the West Side Market at 84 3rd Avenue.
The company reported that thousands of customers today signed up for promotion and picked up their free groceries. It also seemingly took a subtle dig at Polymarket in a tweet promoting the event.
Why the dig? Because while Kalshi was giving away groceries to customers, Polymarket today announced “The Polymarket,” promoted as New York’s first free grocery story. The “fully stocked” store requires no purchase for groceries and will have its grand opening on Thursday, Feb. 12, at noon.
The company also announced a $1 million donation Food Bank for NYC.
Few details have yet to be released on “The Polymarket” and how New York City residents can participate (or what they are limited to) when the market opens.
Attorney General Warns of Prediction Markets
The grocery promotions came at the same time as New York Attorney General James issuing a consumer alert warning New Yorkers of the risks posed by prediction markets, describing them as “online platforms offering bets masquerading as ‘event contracts’ on the outcomes of political events, sporting events, or other future events.”
“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” James said. “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.”
Prediction markets operate without the regulation of the New York State Gaming Commission, James reported, which puts New Yorkers at significant financial risk. She also warned the industry that the conduct, advertisement, and promotion of unlicensed sports betting violates New York’s gaming laws.
If operators promote or engage in these markets, James said this could lead to civil and criminal liability.
New York is an emerging battleground for prediction market companies and their sports event contract offerings. New York is currently embroiled in a lawsuit with Kalshi over its sports event contracts. Kalshi filed a lawsuit against members of the New York State Gaming Commission just two days after the regulatory body sent a cease-and-desist letter to the prediction market company on Friday, Oct. 24.
The state’s notice demanded an immediate cease-and-desist from “illegally operating, advertising, promoting, administering, managing, or otherwise making available an unlicensed mobile sports wagering platforming” in the state. The gaming commission defined Kalshi’s sports event contracts and CFTC-filings as “sports wagering within the meaning of New York law,” which the company does not hold a license for in the state.
