- New York AG Letitia James sued Coinbase Financial Markets, Inc. and Gemini Titan, LLC, alleging that the companies operated unlicensed “prediction market” platforms that constituted illegal gambling operations in New York.
- According to the petitions filed against Coinbase and Gemini, both companies offered “event contracts” that the AG alleges constitute gambling by allowing users wager on sports, elections, entertainment, and other contingent events, even though neither company was licensed by the New York State Gaming Commission.
- The filings further allege that both platforms were available to users ages 18 to 20 and offered bets on games involving New York college teams, which state law bars even for licensed operators.
- New York is seeking permanent injunctions, an accounting of wagers, restitution, disgorgement, damages, penalties equal to three times each company’s alleged gains, and $100,000 for each unauthorized offer or attempted offer of sports wagering or mobile sports wagering in the state, among other relief.