Marketing Practices at Polymarket Face City Inquiry
Operators using influencer or unconventional ad channels must prepare for stricter scrutiny of promotional disclosures.
Updated on Oct. 24, 2026 in Marketing
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Polymarket is facing increased scrutiny from New York City officials following reports that the platform used fortune cookies to advertise its betting services. The inquiry examines marketing practices across prediction-market companies, specifically regarding promotions for sports, political, and cultural contracts.
Why it matters
The regulatory interest highlights the legal risks involved in unconventional customer acquisition strategies for high-stakes platforms. As officials examine promotional practices, businesses should note that aggressive marketing in niche categories often invites closer government oversight of compliance and disclosure.
A single social media post featuring the company's fortune cookie ad garnered more than 500,000 views. This follows broader scrutiny into promotional activities where $350,000 was paid to social influencers for 490 posts over a 14-month period.
The players
Polymarket
A decentralized prediction-market platform that allows users to bet on the outcome of sports, political, and cultural events.
OpenFortune
A marketing firm that specializes in placing branded content inside fortune cookies distributed to retail establishments.
Matthew Modabber
The chief marketing officer of Polymarket, who oversaw the platform's influencer-based growth and promotional strategies.
The details
The advertisement involves a purple slip placed inside fortune cookies that features the Polymarket name, logo, and a QR code. This method mirrors tactics previously used by FTX to attract users before its collapse. New York regulators are currently reviewing how these platforms incentivize participation in sports, political, and cultural betting contracts.
Timeline
July 2022: OpenFortune facilitated similar fortune cookie advertisements for FTX.
August 12, 2026: Local reports first detail the New York marketing inquiry.
September 5, 2026: LeBron James releases a 14-second teaser for a partnership.
October 24, 2026: An image of the Polymarket fortune cookie ad circulates on X.
Market Landscape
This development follows the precedent set by the 2022 FTX marketing campaigns facilitated by OpenFortune. Regulators are increasingly drawing parallels between current prediction-market promotional strategies and the aggressive growth tactics used by previous industry players.
Operators using third-party influencer or unconventional physical marketing should document all payment disclosures to satisfy regulatory inquiries. Review your current promotional contracts to ensure they align with state-level transparency requirements for financial services.
The takeaway
Marketing via fortune cookies is a highly visible signal that regulators are using to assess broader operational compliance within the betting industry. Owners should track regulatory inquiries to verify that their lead-generation partners are not creating hidden liabilities.
Further reading
For more on evolving standards, see our guide on Marketing.
Source note: This article includes information reported by Crypto.
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