New York Sues Coinbase and Gemini Over Unlicensed Prediction Market Products

The New York State Gaming Commission has taken aim at cryptocurrency exchanges Coinbase and Gemini over their prediction market products. According to lawsuits filed in Manhattan state court, the 'event contract' offerings from these platforms constitute illegal gambling under state law. The Attorney General's office argues that the products, which allow users to bet on sporting events or election outcomes, are essentially gambling with outcomes beyond the users' control and an element of chance involved. This is in direct conflict with New York state laws and regulations.

As a result of this discrepancy, Coinbase Financial Markets and Gemini Titan have been accused of failing to obtain the necessary licenses from the state gaming commission to operate these markets. The Attorney General's office has emphasized that gambling is regulated under state laws and the Constitution, regardless of how it may be presented.