New York Sues Coinbase and Gemini Over Prediction Markets

On Tuesday, New York state filed high-stakes lawsuits against two major cryptocurrency companies, Coinbase and Gemini, for allegedly violating state gambling laws by offering prediction markets.

The suits, filed in a Manhattan state court, target not only sports-related wagers but also the firms' prediction markets related to entertainment and politics. According to the complaints, both Coinbase and Gemini have allowed users as young as 18 to participate in these markets, despite New York's legal age for gambling being 21.

New York Attorney General Letitia James stated that 'gambling by another name is still gambling' and that these prediction markets lack necessary guardrails. The state is seeking significant damages from the companies, with at least $2.2 billion in claims against Coinbase and at least $1.2 billion in claims against Gemini.

This case marks the latest development in a long-standing dispute over the regulation of prediction markets. Numerous other states have already taken action, while the platforms involved argue that their offerings are exempt from state laws due to federal regulations.