New York Takes Legal Action Against Coinbase and Gemini Over Prediction Markets
New York's Attorney General has initiated a lawsuit against Coinbase and Gemini concerning their prediction markets, claiming they breach state gambling laws.
The Attorney General for New York has filed a lawsuit against the prediction market operations of Coinbase and Gemini, asserting that these platforms are in violation of state laws pertaining to gambling.
According to the filings submitted in a Manhattan court, Attorney General Letitia James contends that both Gemini and Coinbase lack the necessary licenses from the New York State Gaming Commission to run these markets.
James also points out that the event contracts available for users to bet on are “quintessentially gambling,” given that the event outcomes fall outside bettors’ control or comprise chance events.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” AG James stated.
In a response to the lawsuit, Coinbase’s Chief Legal Officer Paul Grewal noted that the firm will “continue to pursue federal oversight of these markets that Congress intended.”
This lawsuit emerges as prediction markets gain traction. Recently, CryptoPotato highlighted that Polymarket is looking to raise $400 million at a $15 billion valuation, while its major rival, Kalshi, successfully raised $1 billion at a valuation of $22 billion.
