New York Attorney General Cracks Down on Unlicensed Prediction Markets

The New York Attorney General's office has launched a crackdown on cryptocurrency platforms operating unlicensed prediction markets.

According to the complaints filed in Manhattan state court, Coinbase Financial Markets and Gemini Titan have been facilitating wagering on sports events and electoral contests without proper authorization from New York's gaming oversight body.

The regulatory conflict surrounding prediction market platforms nationwide is escalating as authorities challenge these activities as illegal gambling. State regulators argue that results hinge on chance factors or external circumstances beyond participant influence, satisfying statutory criteria for gambling activities under New York law.

The lawsuits demand monetary penalties corresponding to revenues derived from prediction markets operations and compensatory damages. The state also seeks restrictions on advertising campaigns directed toward educational institutions and remediation programs for impacted users.