New York Attorney General Letitia James has initiated legal action against Coinbase Financial Markets, Inc., and Gemini, Titan LLC, accusing them of running unlicensed gambling operations in the state. The lawsuits target what are known as “prediction markets,” which allegedly allowed users to wager on a variety of events, including sports, entertainment, and elections.
According to the claims from the Attorney General’s Office, these platforms have facilitated gambling activities without the necessary licenses from the New York State Gaming Commission. This oversight is significant, as state laws explicitly define such activities as gambling. Furthermore, the lawsuits assert that both platforms were accessible to users ranging from 18 to 20 years old, in violation of New York regulations that require participants in certain gambling activities, such as mobile sports betting, to be 21 years or older.
The allegations extend to the platforms allowing wagers on events featuring New York college teams, which is also prohibited under state law. This aspect raises further concerns regarding compliance with existing gambling regulations designed to protect youth and ensure the integrity of sporting events.
As part of the legal proceedings, New York state officials are seeking court orders that would compel both Coinbase and Gemini to forfeit any profits gained from these illicit activities. Additionally, they are pursuing financial penalties and restitution for customers affected by these actions.
This legal initiative is part of a broader enforcement strategy by the Attorney General’s Office aimed at addressing potential misconduct within the cryptocurrency and online gambling sectors, emphasizing the need for compliance with regulatory standards to safeguard consumers and uphold the law.
