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New York AG sues Coinbase and Gemini over illegal gambling
The Attorney General of New York, Letitia James, has filed a lawsuit against Coinbase and Gemini, accusing the platforms of violating state laws connected to prediction market regulations.
The lawsuit was filed on April 21, 2026, in the state court of Manhattan, aiming to stop the platforms from offering event contracts that are illegal in the state, as well as seeking restitution, damages, and financial penalties.
AG James stated:
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution. 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.”
Gemini had launched its Gemini Predictions platform in December 2025, while Coinbase began offering event contracts in January 2026.
Chief Legal Officer at Coinbase, Paul Grewal, responded:
“Coinbase will continue to fight for the federal oversight of these markets that Congress intended.”
The laws of New York stress that individuals must be 21 and over in order to take part in mobile sports betting; however, both companies allow people aged 18-20 to participate in their prediction market platforms.
The Attorney General has also urged citizens to only use gambling platforms that are registered with the New York State Gaming Commission.
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