New York Attorney General sues Coinbase and Gemini
Attorney General Letitia James says the companies illegally run gambling through prediction market platforms.
US.- New York Attorney General Letitia James has sued Coinbase Financial Markets and Gemini Titan, alleging they are illegally running gambling operations through prediction market platforms. A release from the Attorney General’s office said the companies offer users the ability to bet on events, including sports, entertainment and elections, in violation of state laws.
James says Coinbase and Gemini should forfeit allegedly illegal profits, distribute restitution to customers and pay fines equal to three times the profits made through their actions.
The Attorney General says the companies failed to obtain a licence from the New York State Gaming Commission and that their prediction markets are also available to users between the ages of 18 and 20, while people must be at least 21 to participate in mobile sports betting. James’ lawsuits also allege that Gemini and Coinbase are violating state laws that forbid betting on games in which New York college teams participate.
James commented: “Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution. Gemini and Coinbase’s so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails. My office is taking action to protect New Yorkers and stop these platforms from violating the law.”
