New York Attorney General Letitia James sued Coinbase Financial Markets Inc. and Gemini Titan LLC for illegally running gambling operations in New York through their so-called “prediction market” platforms.
Both Coinbase and Gemini offer users the ability to bet on events, including sports, entertainment and elections, in violation of New York laws.
An investigation by the Office of the Attorney General found that Coinbase and Gemini are running prediction markets that constitute illegal, unlicensed gambling operations. These illegal operations expose New Yorkers, including those under the legal gambling age of 21, to serious financial and personal risk.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” James said. “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.”
Coinbase and Gemini opened prediction markets available to New Yorkers over the age of 18. Prediction markets allow users to bet money on the outcome of a wide range of future events, from sports games to elections to award shows.
Because the outcomes of these events are uncertain and outside the bettor’s control or hinge on a game of chance, these prediction market platforms fit the legal definition of gambling in New York.
Coinbase and Gemini have failed to obtain a license from the New York State Gaming Commission, sidestepping their obligation to pay taxes like licensed casinos and mobile sports gambling platforms do.
That tax revenue funds public schools, sports programs for underserved youth, as well as problem gambling education and treatment.
Coinbase and Gemini’s prediction markets are also available to users between the ages of 18 and 20, even though New York law states that a person must be at least 21 years old to participate in mobile sports betting.
Exposing young people to online gambling can have damaging effects on their mental and financial well-being. A recent study by the National Institutes of Health found that early exposure to gambling increases the likelihood of depression, anxiety, mood swings and financial stress. Further, a study by the American Psychological Association found that 32% of those with a gambling disorder experience suicidal ideation.
James’ lawsuits also allege that Gemini and Coinbase are violating New York laws that forbid any betting on games in which New York college teams participate.
In her lawsuits, James is asking the court to require Coinbase and Gemini to forfeit illegal profits, distribute restitution to harmed consumers and pay fines equal to three times the profits the companies made through their illegal actions.
The lawsuits are the latest actions in James’ efforts to enforce New York laws in the crypto and gambling industries and protect New York consumers.
James has issued multiple consumer alerts warning New Yorkers about the hazards of gambling and industry alerts encouraging compliance with state laws.
James has also taken action to prevent illegal gambling in New York. In January of 2026, she sued Valve, a video game developer, for illegally promoting gambling through games popular with children and teenagers.
In June 2025, she announced that the A.G.’s Office stopped 26 illegal online sweepstakes casinos that offered slots, table games and sports betting using virtual coins that could be exchanged for cash and prizes.
Attorney General James urges New Yorkers to ensure that gambling platforms are registered with the New York State Gaming Commission and report any misconduct or gaming fraud.
Reports can be filed online anonymously or by calling 1-800-771-7755.
The case is being handled by Assistant Attorney Generals Alejandra de Urioste, K. Brent Tomer, Daniel Wiesenfeld and Nina Varindani, and Senior Enforcement Counsel Tanya Trakht of the Investor Protection Bureau, with assistance from Legal Assistant Renata Bodner and Senior Detective Brian Metz of the Investigations Division.
The Investor Protection Bureau is led by Bureau Chief Shamiso Maswoswe and Deputy Bureau Chief Kenneth Haim and is a part of the Division of Economic Justice, which is overseen by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.
