New York Attorney General Letitia James filed lawsuits in Manhattan state court on Tuesday against cryptocurrency exchanges Coinbase and Gemini, alleging they operate illegal gambling operations through prediction markets covering sports, entertainment, and politics. The lawsuits argue both companies violated New York state gambling laws by allowing users as young as 18 to place wagers on these markets, despite the state's legal gambling age being 21. James characterized the platforms as illegal gambling operations disguised as prediction markets. The legal action targets a growing sector where crypto platforms offer event-based wagering that regulators increasingly view as unlicensed gambling rather than legitimate information markets.
New York's Legal Action Against Crypto Prediction Markets
- ▪The state of New York filed lawsuits against Coinbase and Gemini on Tuesday
- ▪New York's lawsuits against Coinbase and Gemini target sports-related wagers on prediction markets offered by the companies
- ▪New York's lawsuits against Coinbase and Gemini were filed in a Manhattan state court
Allegations of Gambling Law Violations and Underage Access
- ▪Letitia James characterized Gemini and Coinbase's prediction markets as illegal gambling operations
- ▪New York's lawsuits argue that Coinbase and Gemini violated state gambling laws by offering prediction markets
- ▪The legal age to gamble in New York state is 21
- ▪Coinbase allows New Yorkers as young as 18 to place wagers on prediction markets
Perspective of Letitia James
- ▪Letitia James argued that Coinbase and Gemini's prediction markets put young New Yorkers at risk
- ▪Letitia James stated that Coinbase and Gemini are disguising gambling as prediction markets
Perspective of Coinbase and Gemini
- ▪Coinbase and Gemini characterize their prediction market offerings as information markets rather than gambling platforms
- ▪Coinbase and Gemini argue that prediction markets serve a legitimate purpose of aggregating information about future events
Story comments
Loading comments…