In a recent lawsuit, New York targeted Coinbase and Gemini, alleging that their prediction market offerings constitute unlicensed gambling products. The lawsuit claims that these platforms operate as bookmakers, allowing users to place bets on various outcomes, including sports and entertainment events.
Furthermore, the lawsuit argues that the platforms permit individuals between the ages of 18 and 21 to participate, despite New York's laws prohibiting gambling on mobile apps for those under 21. The state's attorney general, Letitia James, described the platforms as 'illegal gambling operations,' emphasizing that gambling by any other name remains subject to state regulations. This development is the latest in a series of lawsuits filed by states against prediction market providers, with the issue likely to be decided by the U.S.
Supreme Court. Coinbase has stated its intention to fight for federal oversight, while Gemini declined to comment on the matter.