New York Attorney General Sues Coinbase and Gemini Over Unlicensed Prediction Market Gambling in April 2026

On April 21, 2026, New York Attorney General Letitia James filed civil complaints in New York state court against Coinbase Financial Markets, Inc. and Gemini Titan LLC, alleging that each company operates an unlicensed prediction market constituting illegal gambling under New York law. The lawsuits are at the complaint-filing stage; no judgment has been entered.

Attorney General James grounded the complaints in New York's gambling laws and the New York Constitution, which generally prohibit wagering on uncertain future events without state authorization. The Office of the Attorney General found that both Coinbase's and Gemini's prediction market platforms allow users aged 18 and older to bet money on the outcomes of sports, entertainment events, elections, and other contingent events. Because the outcomes are uncertain and outside bettors' control, the AG's office characterized these platforms as "gambling" within the meaning of New York Penal Law. New York Executive Law and General Business Law provisions governing false or deceptive business practices are also cited as authority.

The practical impact on both firms is immediate: the AG seeks court orders requiring each company to (i) forfeit illegal profits, (ii) pay restitution to affected New York consumers, and (iii) pay fines equal to three times the profits generated through the illegal operations. Neither Coinbase nor Gemini holds a license from the New York State Gaming Commission. Licensed operators — including casinos and mobile sports-betting platforms — pay taxes that fund public education and problem-gambling treatment programs. The AG also alleges that both platforms are accessible to users aged 18-20, below New York's minimum age of 21 for mobile sports betting.

The complaints also allege that Gemini and Coinbase allow wagering on games involving New York college teams, which New York law separately prohibits. No consent decree or settlement has been announced. The AG reserves the right to seek preliminary injunctive relief.

Prokopiev Law Group advises prediction market operators, crypto exchanges, and fintech companies on regulatory compliance, licensing, and litigation exposure across U.S. jurisdictions, and maintains a dedicated partner network for enforcement defense and regulatory strategy. We welcome inquiries from operators, investors, and legal counsel seeking analysis of prediction market regulatory risk. Relevant work we handle includes: prediction market licensing, gambling law compliance, fintech enforcement defense, crypto exchange regulatory counsel, and NY AG investigations.

Source: New York State Attorney General, Press Release, "Attorney General James Sues Coinbase and Gemini for Running Illegal Gambling Platforms in New York," April 21, 2026. Available at: https://ag.ny.gov/press-release/2026/attorney-general-james-sues-coinbase-and-gemini-running-illegal-gambling. Confirmed April 24, 2026.

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.