The New York Attorney General’s office has taken action against cryptocurrency exchanges Coinbase and Gemini for their prediction market products.
Lawsuits filed in Manhattan state court allege that the “event contract” products offered by these platforms constitute illegal gambling under state law.
New York Attorney General Letitia James stated that Coinbase Financial Markets and Gemini Titan did not obtain the necessary licenses from the New York State Gaming Commission to operate these markets. The products in question allow users to bet on the outcomes of events such as sporting events or elections, and these activities are argued to violate the state’s gambling laws.
James argued that such contracts are “essentially gambling,” noting that outcomes are beyond the users’ control and involve an element of chance. He also pointed out that while the platforms allow users aged 18-20 to conduct transactions, the minimum age limit for mobile sports predictions in New York is 21. He stated, “Gambling is gambling, even if presented under a different name, and is regulated under state laws and the Constitution.”
*This is not investment advice.