New York Attorney General Letitia James announced on Apr. 21 that her office has filed lawsuits against Coinbase Financial Markets, Inc. and Gemini, Titan LLC for allegedly running illegal gambling platforms in the state through their prediction market services.
The lawsuits claim that these companies have allowed users to bet on various events such as sports, entertainment, and elections without proper licensing or regulation. The action aims to protect New Yorkers from financial and personal risks associated with unregulated gambling, especially those under the legal age of 21.
James said, “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.”
According to the lawsuits, both companies failed to obtain licenses from the New York State Gaming Commission while making their services available to individuals as young as 18 years old. This practice bypasses tax obligations required of licensed casinos and mobile sports betting operators—taxes which support public schools, youth sports programs, and problem gambling treatment initiatives. Additionally, Attorney General James alleges that both companies violated state laws prohibiting bets on games involving New York college teams.
Studies cited by the Attorney General’s office highlight potential harms linked with early exposure to online gambling among young people—including increased risks of depression, anxiety disorders, mood swings, financial stress, and suicidal ideation.
The lawsuits seek court orders requiring Coinbase and Gemini to pay fines equal to three times their profits from these activities as well as restitution for affected consumers. The cases are being managed by Assistant Attorneys General Alejandra de Urioste, K. Brent Tomer, Daniel Wiesenfeld, Nina Varindani; Senior Enforcement Counsel Tanya Trakht; Legal Assistant Renata Bodner; Senior Detective Brian Metz; Bureau Chief Shamiso Maswoswe; Deputy Bureau Chief Kenneth Haim; Chief Deputy Attorney General Chris D’Angelo; First Deputy Attorney General Jennifer Levy.
Letitia James heads the New York Attorney General’s office according to the official website. The agency operates across regional offices statewide addressing local legal issues according to its official website while providing services like consumer fraud investigations according to its official website. It acts as a public law enforcement body dedicated to protecting civil rights according to its official website, upholding consumer protections according to its official website, promoting social justice according to its official website, preserving the environment according to its official website, defending tenant rights mediation according to its official website—and encouraging anyone aware of misconduct or gaming fraud involving unregistered platforms in New York State Gaming Commission’s registry file complaints anonymously online or via phone.
