The state’s Office of the Attorney General (OAG) alleged in a Tuesday press release that prediction market platforms fit New York’s legal definition of gambling, that Coinbase and Gemini failed to obtain a license from the New York State Gaming Commission, and that the companies’ prediction markets are available to users between the ages of 18 and 20, while New York law says only people at least 21 years old may participate in mobile sports betting.
The OAG also alleges in the lawsuits that Coinbase and Gemini are violating the state’s laws that forbid betting on games in which New York college teams participate, according to the release.
In the lawsuits, the OAG seeks court orders requiring the companies to pay fines, forfeit illegal profits and pay restitution to customers, per the release.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” New York Attorney General Letitia James said in the release. “Gemini and Coinbase’s so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails.”
Coinbase Chief Legal Officer Paul Grewal responded to the lawsuit in a Tuesday post on X, saying: “About the NY lawsuit news — prediction markets are federally regulated national exchanges, registered with the CFTC [Commodity Futures Trading Commission]. This issue is proceeding in New York federal court as we speak. Coinbase will continue to fight for the federal oversight of these markets that Congress intended.”
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Gemini did not immediately reply to PYMNTS’ request for comment.
Gemini Titan, an affiliate of Gemini Space Station, made its prediction market platform available to customers in the United States in December 2025. The U.S. launch of the Gemini Predictions platform came a week after the company received a Designated Contract Market (DCM) license from the CFTC.
Coinbase filed lawsuits in Connecticut, Michigan and Illinois in December 2025, challenging each state’s efforts to control or block prediction markets.
The CFTC filed lawsuits against Arizona, Connecticut and Illinois on April 2, saying the states have taken actions that intrude on the regulator’s exclusive jurisdiction to regulate prediction markets.
