NYS sues prediction platforms over gambling allegations
New York Attorney General Letitia James is suing Coinbase and Gemini, alleging their prediction markets constitute illegal gambling.Summary
New York Attorney General Letitia James announced lawsuits against Coinbase Financial Markets, Inc. and Gemini Titan LLC, alleging that their prediction market platforms violate state gaming laws by offering New Yorkers the opportunity to bet on various events, including sports and elections. James argues that these platforms function as illegal gambling operations because outcomes are uncertain and based on chance. The lawsuits seek to halt the companies’ operations in New York, recover three times their profits in fines, and provide restitution to customers. Additionally, the suits claim both companies allowed underage individuals to participate in mobile sports wagering and operated without the required licenses from the New York State Gaming Commission. James emphasized that these platforms are avoiding regulatory oversight and tax obligations. Coinbase maintains that prediction markets are federally regulated and under the oversight of the U.S. Commodity Futures Trading Commission, and will continue to fight for federal oversight. Gemini has not yet responded to the allegations.
(Source：Newsday)