New York Attorney General Letitia James has filed lawsuits against Coinbase Financial Markets and Gemini Titan, accusing them of operating illegal gambling businesses through their prediction market platforms. The lawsuits, filed in Manhattan state court, allege that both platforms allowed users aged 18 to 20 to wager on sports events and elections, violating New York's legal gambling age of 21.
James seeks to impose triple civil fines, restitution for customers, and a ban on marketing these platforms on college campuses. This marks the first significant state-level enforcement action against prediction markets offered by major cryptocurrency exchanges. The AG's office argues that these platforms meet the state's definition of gambling, as outcomes are determined by chance or external factors, regardless of how the companies describe their services.
New York AG Sues Coinbase and Gemini for Illegal Gambling Operations
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