New York AG Letitia James filed suit against Coinbase and Gemini, alleging their prediction market platforms constitute illegal gambling operations lacking state licenses.
New York Attorney General Letitia James sued Coinbase Financial Markets, Inc. and Gemini, Titan LLC on April 21, 2026, alleging both platforms illegally operated unlicensed gambling operations through prediction market offerings in New York.
The AG’s investigation found that Coinbase and Gemini’s prediction markets —which allow users to bet on sports, entertainment, and election outcomes —violate New York state gambling laws by operating without Gaming Commission licenses. The suit seeks court orders requiring both companies to pay fines, forfeit illegal profits, and provide restitution to customers.
The AG’s complaint highlights that both platforms allow New Yorkers ages 18 and older to access the prediction markets, despite New York law requiring participants in mobile sports betting to be at least 21 years old. The AG cited research showing early exposure to gambling increases risks of depression, anxiety, and financial stress, noting the platforms lack necessary consumer protections.
By operating unlicensed, Coinbase and Gemini bypass tax obligations that licensed casinos and mobile sports betting platforms must pay, which fund public schools, youth sports programs, and problem gambling treatment in New York.
Sources: New York State Attorney General
This article was generated automatically by The Defiant’s AI news system from publicly available sources.
Source: https://thedefiant.io/news/regulation/ny-ag-sues-coinbase-gemini-unlicensed-prediction-markets
