New York Sues Coinbase and Gemini Titan Over Prediction Markets

(AsiaGameHub) –   New York has targeted two prediction market operators directly. Attorney General Letitia James states that Coinbase and Gemini Titan provided event contracts which violate state gambling laws.

---

Good to Know

• New York is seeking damages, fines, profit forfeiture, and user compensation.
• The state claims both platforms allowed 18-year-olds to trade in a market where sports betting requires users to be 21.
• Coinbase started offering event contracts in January, while Gemini Titan obtained CFTC approval in December 2025.

---

New York Files Gambling Lawsuit Against Coinbase And Gemini Titan

Instead of waiting for federal proceedings to play out, New York took legal action. James filed a suit in Manhattan Supreme Court, alleging Coinbase and Gemini Titan ran illegal gambling operations by offering sports and other event contracts without a state license.

The case covers more than just licensing issues. New York says both platforms gave younger users access to products tied to uncertain outcomes, neglected state tax obligations, and offered contracts involving in-state college teams—something legal sportsbooks in New York are forbidden from doing.

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 necessary guardrails. My office is taking action to protect New Yorkers and stop these platforms from breaking the law.”

New York is seeking a temporary restraining order and a preliminary injunction. James also wants fines, profit forfeiture, and restitution. Coinbase alone faces an alleged $2.2 billion in damages.

Coinbase entered the event contract space in January with markets linked to sports, elections, and entertainment. Gemini Titan, developed by Gemini Space Station, received CFTC approval as a Designated Contract Market in December 2025. Even so, New York argues state law still applies because the products meet the legal definition of gambling.

This argument rests on a simple point: in the attorney general’s view, users are staking money on outcomes outside their control or on games of chance. Under New York law, that is gambling, no matter what label a platform uses.