Discover the Key Points:
According to reports from Reuters, New York Attorney General Letitia James has filed lawsuits against Coinbase and Gemini on April 21 for operating unlicensed prediction markets. These platforms allowed users aged 18 to 20 to place bets, which goes against New York’s law that requires individuals to be at least 21 years old for sports betting. James is seeking triple civil fines, restitution for customers, and a ban on marketing these platforms on college campuses.
New York Attorney General Takes Aim at Coinbase and Gemini in Crackdown on Prediction Markets
Jonathan Stempel, a contributor from Reuters New York, revealed that Letitia James lodged the complaints in Manhattan state court, alleging that both cryptocurrency exchanges were conducting markets where users could speculate on the outcomes of sports events and elections without the necessary licenses from the New York State Gaming Commission. Bloomberg also covered the legal actions.
These filings represent a significant enforcement action at the state level targeting prediction markets offered by prominent cryptocurrency platforms. James argued that these platforms fall under New York’s definition of gambling as the results are influenced by chance or external factors beyond the users’ control. Her office emphasized that this classification applies regardless of how the companies label their services.
According to the complaints, both companies permitted individuals between 18 and 20 years old to engage in these activities, despite New York law stipulating that the minimum age for mobile sports betting is 21.
“Gambling in any form is still considered gambling, and it is subject to regulation under our state laws and Constitution,” stated James in a press release accompanying the filings, as reported by Reuters.
The attorney general is aiming to recuperate illicit profits, impose civil penalties amounting to three times the profits, and provide compensation to affected customers. Additionally, James has requested the court to prohibit Coinbase and Gemini from accepting bets from users under 21 and from promoting their platforms on college campuses.
Be the first to comment