Trending Now - New York AG Takes Legal Action Against Prediction Market Firms
WHO:
ABC News - The lawsuit was filed in state court in Manhattan.
Engadget - New York Attorney General Letitia James
Engadget - Companies involved: Coinbase Financial Markets and Gemini Titan
WHAT:
ABC News - The lawsuit seeks to bar Coinbase and Gemini from operating in New York unless they obtain licenses from the state Gaming Commission.
ABC News - The lawsuit claims that Coinbase and Gemini's prediction market businesses are not paying the same taxes as licensed casinos and mobile sportsbooks, which are taxed at approximately 51% of gross revenues.
ABC News - The lawsuit states that Coinbase and Gemini allow users as young as 18 to participate, while state law prohibits wagering by anyone under 21.
Engadget - Letitia James has sued Coinbase Financial Markets and Gemini Titan for allegedly running unlicensed gambling operations.
Engadget - The lawsuit claims that the prediction markets violate state laws against betting on games involving New York college sports teams.
Cointelegraph - The lawsuit adds pressure on cryptocurrency companies as states regulate event-based trading platforms.
WHERE:
Engadget - The legal action is taking place in New York.
WHEN:
ABC News - The lawsuit was filed on April 19th, 2026.
Engadget - The lawsuit was filed in April 2026.
Engadget - Earlier in April 2026, the US Commodity Futures Trading Commission (CFTC) sued three states (Arizona, Connecticut, and Illinois) regarding prediction markets.
WHY:
ABC News - The lawsuit alleges that Coinbase and Gemini are seeking to avoid legal and financial consequences of state gambling regulations by offering "event contracts" on a "prediction market."
Engadget - Letitia James stated, "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution."
Engadget - The lawsuit aims to protect young people from "addictive platforms that lack the necessary guardrails."
HOW:
ABC News - The lawsuit claims that the operations of Coinbase and Gemini are illegal under New York state laws by operating without licenses.
Engadget - The lawsuit alleges that the operations of Coinbase and Gemini are illegal under New York state laws.
(UPDATED April 21, 2026 23:11 UTC)
A lawsuit was filed in state court in Manhattan on Sunday, seeking to bar Coinbase and Gemini from operating in New York unless they obtain licenses from the state Gaming Commission. The lawsuit alleges that these companies' prediction market businesses are not paying the same taxes as licensed casinos and mobile sportsbooks, which are taxed at around 51% of gross revenues, and it also points out that they allow users as young as 18 to participate, despite state law prohibiting wagering by anyone under 21. Furthermore, the lawsuit claims that Coinbase and Gemini are trying to evade legal and financial consequences of state gambling regulations by offering "event contracts" on a "prediction market" without the necessary licenses.
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(UPDATED April 21, 2026 21:15 UTC)
New York Attorney General Letitia James has filed a lawsuit against Coinbase Financial Markets and Gemini Titan, accusing them of running unlicensed gambling operations that violate state laws regarding betting on games involving New York college sports teams. The legal action, initiated in on Monday26, adds pressure on cryptocurrency companies as states increasingly regulate event-based trading platforms, with James emphasizing the need to protect young people from "addictive platforms that lack the necessary guardrails." The lawsuit claims that the operations of both companies are illegal under New York state laws, highlighting the ongoing scrutiny of the cryptocurrency industry.