Overview
- The New York attorney general, who filed twin lawsuits Tuesday in Manhattan, says the exchanges ran unlicensed betting platforms that let people wager on sports, elections, and entertainment.
- The complaints seek to block the services in the state unless licenses are obtained and demand at least $2.2 billion from Coinbase and $1.2 billion from Gemini in forfeited profits, triple penalties, and restitution.
- James says both platforms let 18- to 20-year-olds place bets despite New York’s 21-plus rule, and filings describe about 22,000 test wagers on Coinbase and roughly 12,000 on Gemini by state investigators.
- Coinbase has moved its case to federal court and argues that CFTC oversight preempts state law, as the CFTC pursues separate suits against states that try to police federally regulated prediction markets.
- New York also cites lost tax revenue because licensed mobile sportsbooks pay about 51% of gross revenue, and the outcome could set whether these markets follow one federal standard or a state-by-state patchwork.