In a recent lawsuit, New York has targeted Coinbase and Gemini, alleging that their prediction market offerings constitute unlicensed gambling products. The lawsuit claims that these platforms have been promoting their prediction markets and acting as bookmakers, which is deemed to be in violation of state laws. Furthermore, it is argued that the platforms allow individuals between the ages of 18 and 21 to place bets, which is prohibited in New York for those under 21 using mobile apps.
The state's attorney general has described the prediction market platforms as 'illegal gambling operations,' emphasizing that gambling, regardless of its name, is subject to regulation under state laws and the Constitution. This development is part of a broader trend, with other states like Nevada and Washington also taking legal action against prediction market providers over their sports and entertainment products, sparking a debate that may eventually be resolved by the U.S.
Supreme Court.