New York Attorney General Sues Coinbase and Gemini, Alleging Prediction Market Platforms Engage in Illegal Gambling

According to The Block, New York State Attorney General Letitia James filed a lawsuit against Coinbase and Gemini on Tuesday, accusing both companies of violating New York’s gambling laws through their prediction market platforms and permitting users aged 18 to 21 to participate—despite New York law requiring participants in mobile sports betting to be at least 21 years old. The state is seeking at least $2.2 billion in damages from Coinbase and at least $1.2 billion from Gemini, along with civil penalties, refunds to users, and forfeiture of illicit proceeds. In response, Coinbase Chief Legal Officer Paul Grewal stated that prediction markets fall under the regulatory authority of the U.S. Commodity Futures Trading Commission (CFTC), and the company will continue defending federal regulatory jurisdiction. The dispute over regulatory authority for prediction markets has now increasingly moved into the judicial arena; the CFTC has previously sued several state governments attempting to shut down such platforms.