NEW YORK (BLOOMBERG) -- Prediction market startup Polymarket opened a temporary grocery store in Manhattan’s West Village on Thursday, giving away free food and household staples in a promotional campaign that was delayed by logistical issues.
The event drew a mocking response from Mayor Zohran Mamdani and comes as the company faces regulatory scrutiny.
The pop-up store — dubbed “The Polymarket” — debuted on Thursday afternoon, and was set to make a brief run before closing next Monday, opening for a few hours each day (“or while supplies last,” a sign outside said). The company delayed the opening by two hours as employees raced to fill shelves and paint walls. Outside, crowds of people were lined up around the block.
The promotional material inside the store made no visible reference to the company’s day-to-day business, creating financial contracts that allow people around the world to bet on everything from the Super Bowl to geopolitical crises. Instead the company said the event was a “love letter to New York City.”
Polymarket’s billionaire founder grew up in New York, and the offices are in the city. Four years ago, it was forced to shut down to American customers after a clash with regulators. It is now in the process of re-opening in the US in the more friendly legal environment created by the Trump administration.
The store is one part of a much bigger promotional push as the company vies for attention with its biggest rival, Kalshi Inc., which last week ran its own one-day grocery promotion, giving away $50 of free food at a supermarket slightly further uptown.
Polymarket’s choice of the West Village, one of the most social media friendly part of the city, and far from the areas where hunger is more of an issue, underscored the promotional nature of the event.
Both startups are playing directly to the concerns voiced by Mamdani, who has called for city-run grocery stores and inveighed against the cost of food in the city.
Mamdani, though, made it clear that he was not a fan of the way the startups have taken up his banner. He responded to Polymarket’s announcement with a cutting social media post that used a satirical news headline to offer his take.
“Heartbreaking: The Worst Person You Know Just Made a Great Point,” the headline in Mamdani’s post read.
New York Attorney General Letitia James issued a consumer alert on Feb. 2 warning residents that prediction markets “do not have the same consumer protections as regulated platforms.”
The array of controversies surrounding the company was driven home just hours before the event on Thursday when Israeli authorities announced that they had filed charges against a military reservist and a citizen accused of using classified information to place bets on Polymarket. A representative for Polymarket didn’t immediately respond to a request for comment.
Polymarket has come under scrutiny for its vulnerability to insider trading, and for offering wagers on a wide array of military conflicts on its international exchange. Most other prediction markets have said they are avoiding such contracts for both ethical and legal reasons.
Polymarket opened a beta version of its new app for US customers late last year, focused primarily on sports wagers. It is not publicly available yet, but the company has been waging an extensive promotional campaign, cutting partnerships with media outlets, professional athletes and sports leagues.
The grocery pop-up will be giving away free food for three of the five days it is open. On Saturday, it will offer free flowers and cards for Valentine’s Day. On Monday, the company is asking people to bring food to donate to the community. Until then, a sign outside said: “come early, shop with care, and take what you need. Once we’re out, we’re out!”