In a recent lawsuit, New York has sued cryptocurrency exchanges Coinbase and Gemini, alleging that their predictive market offerings are essentially unlicensed gambling products. According to the lawsuit, these platforms have been advertising their predictive markets and acting as bookmakers, which is against state laws. The lawsuit also highlights that these platforms allow individuals between the ages of 18 and 21 to place bets, despite New York's law prohibiting anyone under 21 from gambling on mobile apps.
The state's attorney general, Letitia James, has stated that both Gemini and Coinbase's products are 'illegal gambling operations,' emphasizing that 'gambling by another name is still gambling' and is subject to state regulations. This lawsuit is part of a larger issue that has seen multiple states, including Nevada and Washington, take similar action against predictive market providers, with the matter likely to be decided by the U.S.
Supreme Court. Coinbase has responded by stating that predictive markets are federally regulated national exchanges and will fight for federal oversight, while Gemini has declined to comment.