New York AG Sues Coinbase and Gemini, Alleging Illegal Prediction-Market Gambling

New York Attorney General Letitia James sued Coinbase Financial Markets and Gemini Titan on Tuesday, alleging their prediction-market products amount to illegal gambling under state law, Reuters reported. According to the complaints filed in Manhattan state court, the platforms let users trade on outcomes tied to sports events and elections without licenses from the New York State Gaming Commission. Bloomberg also reported the legal action. James said the products fit New York's legal definition of gambling because results depend on chance or factors outside a user's control, regardless of how the companies describe the offerings. The filings also allege both companies allowed 18- to 20-year-olds to participate. New York sets the minimum age for mobile sports betting at 21. James is seeking recovery of alleged illegal profits, civil penalties equal to three times those profits, and restitution for customers. She also asked the court to prohibit Coinbase and Gemini from taking wagers from users under 21 and from marketing the platforms on college campuses. "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," James said in a statement issued with the filings, Reuters reported.