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New York has taken direct aim at two prediction market operators. Attorney General Letitia James says Coinbase and Gemini Titan offered event contracts that violate state gambling law.
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Instead of waiting for the federal fight to play out, New York went to court. James filed suit in Manhattan Supreme Court and said Coinbase and Gemini Titan ran illegal gambling operations by offering sports and other event contracts without a state license.
The case goes after more than licensing alone. New York says both platforms gave younger users access to products tied to uncertain outcomes, skipped state tax obligations, and offered contracts involving in-state college teams, something legal sportsbooks in New York cannot do.
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.”
New York is seeking a temporary restraining order and a preliminary injunction. James also wants fines, profit forfeiture, and restitution. Coinbase alone faces a claimed $2.2 billion damages hit.
Coinbase entered the event contract space in January with markets tied to sports, elections, and entertainment. Gemini Titan, developed by Gemini Space Station, received approval from the CFTC as a Designated Contract Market in December 2025. Even so, New York says state law still applies because the products meet the legal definition of gambling.
That argument rests on a simple point. In the view of the attorney general, 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.