New York Attorney General sues Coinbase and Gemini for allegedly offering illegal gambling through prediction market platforms.
Regulation & Gov ·
New York Attorney General Letitia James has sued Coinbase and Gemini alleging that both platforms unlawfully offered users the ability to bet on events through prediction market offerings. The lawsuit centers on whether these services operate as illegal gambling without proper licensing under state law.
The complaint targets the mechanics of how each platform structured its prediction market products, claiming they functioned as gambling venues in violation of New York regulations. The case filed by the state raises questions about how crypto platforms classify and govern betting-like features, particularly where regulatory clarity remains contested between state and federal authorities.
The outcome remains uncertain. Neither platform has made a public statement on the merits, and it is unclear whether either intends to suspend prediction market operations pending resolution, modify the products' structure, or contest the characterization in court.