In a significant legal move, New York has filed lawsuits against crypto giants Coinbase and Gemini, accusing them of breaching state gambling regulations through their prediction market offerings. The litigation was launched on Tuesday in Manhattan’s state court, targeting the companies’ sports wagers as well as markets related to entertainment and politics.
New York Attorney General Letitia James highlighted concerns over the fact that both platforms permit New Yorkers aged 18 and above to engage with these markets, despite a legal gambling age of 21. “Gambling under any guise remains subject to our state’s laws and constitution,” stated James in a release. She characterized Gemini and Coinbase’s prediction markets as illicit gambling operations, posing risks to young users by exposing them to potentially addictive platforms lacking essential safeguards.
Editor’s note: This story is developing and will be updated with further information.