New York Attorney General Sues Coinbase and Gemini, Alleging Prediction Markets Constitute "Illegal Gambling"

Odaily News Letitia James has filed a lawsuit against Coinbase and Gemini, accusing them of offering "disguised gambling" services through prediction market platforms, in violation of New York state law.

Regulators believe that this type of trading based on event outcomes (such as sports, elections) is essentially gambling activity. They particularly question the platforms allowing participation by users aged 18 to 21, while New York law sets the minimum age for sports betting at 21. Prosecutors are seeking substantial fines and the disgorgement of profits, demanding at least $2.2 billion from Coinbase and at least $1.2 billion from Gemini.

Both companies have not yet formally responded, but Coinbase stated that prediction markets are regulated by the Commodity Futures Trading Commission, implying their legality falls under federal jurisdiction.