The state of New York filed a pair of high-stakes lawsuits Tuesday against Coinbase and Gemini, arguing the crypto companies violated state gambling laws by offering prediction markets.
The suits, filed Tuesday in a Manhattan state court, target not only sports-related wagers on Coinbase and Gemini, but also the firms’ prediction markets related to entertainment and politics.
New York Attorney General Letitia James also took issue in the lawsuits with the fact that both Coinbase and Gemini allow New Yorkers as young as 18 to place wagers on prediction markets, when the legal age to gamble in the state is 21.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and constitution,” James said in a statement. “Gemini and Coinbase’s so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails.”
