On April 21 2026, the New York Attorney General’s office filed a lawsuit against Coinbase Global, Inc. and its subsidiary Gemini Titan, alleging that their prediction‑market platforms constitute illegal gambling under state law.
The complaint accuses Coinbase and Gemini of operating unlicensed betting services that allow users aged 18 to 20 to trade contracts on sports, elections, and other events, violating New York’s minimum gambling age of 21 and the state’s gaming regulations.
The lawsuit seeks disgorgement of alleged illegal profits, civil penalties up to three times the amount, and corrective measures to restrict under‑age access and marketing to college campuses.
The action comes as Coinbase pursues its “Everything Exchange” vision, which aims to integrate digital assets with traditional securities, ETFs, and other financial products. The lawsuit could create legal uncertainty for that expansion plan and highlight the broader jurisdictional battle between state regulators and the CFTC over prediction markets.
Gemini launched its prediction‑market platform in December 2025 after receiving a Designated Contract Market license from the CFTC, while Coinbase introduced its service in January 2026. Both companies have faced scrutiny for allowing users under the state’s gambling age to trade on their platforms.
The lawsuit underscores the regulatory risk for firms expanding into prediction markets and the potential impact on Coinbase’s strategy to become a comprehensive financial exchange.
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