New York’s Office of the Attorney General sued Coinbase and Gemini in state court Tuesday, charging both companies with operating illegal, unlicensed gambling platforms under New York’s gambling statutes.
The OAG’s complaint hits on three fronts. First, the AG alleges Coinbase and Gemini failed to obtain a license from the New York State Gaming Commission. Second, the platforms allowed users between 18 and 20 to participate, while New York law caps mobile sports betting participation at 21 and older. Third, both companies allegedly permitted betting on games involving New York college teams, which state law prohibits.
Attorney General Letitia James put it plainly: “Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution.”
Coinbase’s CLO Paul Grewal pushed back immediately, arguing on X that prediction markets are federally regulated national exchanges registered with the CFTC. That’s not a minor point: the CFTC sued Arizona, Connecticut, and Illinois on April 2, asserting exclusive federal jurisdiction over prediction markets. Coinbase filed lawsuits in Connecticut, Michigan, and Illinois in December 2025, challenging state attempts to block these markets.
Gemini Titan, an affiliate of Gemini Space Station, only launched its prediction platform in December 2025, a week after the CFTC granted it a Designated Contract Market license.
The OAG is seeking fines, forfeiture of illegal profits, and restitution to customers. Grewal noted the federal jurisdiction question isn’t a hypothetical. It’s already before New York federal court.
— James Okafor