New York Attorney General Takes Legal Action Against Coinbase and Gemini for Operating Illegal Prediction Markets
New York Attorney General Letitia James has taken legal action against Coinbase Financial Markets and Gemini Titan, accusing them of violating state gambling laws by operating prediction markets without the necessary licenses. The lawsuits, filed in Manhattan state court, allege that the platforms allow users to trade based on predicted outcomes of events like sports and elections, which are considered games of chance under New York law. The attorney general is seeking to recover illegal profits, impose civil fines, and ensure compliance with age restrictions for users.
According to James, the prediction markets offered by Coinbase and Gemini meet the legal definition of gambling in New York because the outcomes are beyond the control of bettors and involve elements of chance. She also criticized the platforms for allowing users aged 18 to 20 to access their services, despite state law requiring a minimum age of 21 for mobile sports betting. The attorney general aims to prevent underage gambling and restrict marketing activities on college campuses by both companies.
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