New York AG Letitia James Sues Coinbase and Gemini, Alleging Prediction Markets Amount to Illegal Gambling

Odaily Planet Daily reported that New York Attorney General Letitia James has filed suit against Coinbase and Gemini, alleging the companies provide "indirect gambling" through prediction-market platforms in violation of New York State law. Regulators characterize event-based trading tied to outcomes such as sports and elections as gambling activity, and are scrutinizing the platforms' access for users ages 18 to 21, while New York sets the minimum age for sports betting at 21. Prosecutors are seeking major penalties and disgorgement, demanding at least $2.2 billion from Coinbase and at least $1.2 billion from Gemini. Neither company has issued an official response. Coinbase has indicated that prediction markets are overseen by the Commodity Futures Trading Commission, arguing the activity falls under federal jurisdiction.