NY OAG Sues Companies for Allegedly Operating Illegal Gambling Platforms
On April 21, 2026, the New York Attorney General’s office announced that it has sued Coinbase Financial Markets, Inc. (Coinbase) and Gemini, Titan LLC (Gemini) for allegedly illegally running gambling operations in New York through “their so-called ‘prediction market’ platforms.”
According to a New York Attorney General subpoena defense lawyer, allegations include that “both Coinbase and Gemini offer users the ability to bet on events, including sports, entertainment, and elections, in violation of New York laws.” As set forth in the announcement, “an investigation by the Office of the Attorney General found that Coinbase and Gemini are running prediction markets that constitute illegal, unlicensed gambling operations.” The announcement goes on to allege that “these illegal operations expose New Yorkers – including those under the legal gambling age of 21 – to serious financial and personal risk
The NY OAG is seeking court orders requiring Coinbase and Gemini to pay fines, forfeit illegal profits, and pay restitution to customers.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” said Attorney General James. “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.”
Prediction markets allow users to bet money on the outcome of a wide range of future events, from sports games to elections to award shows. Because the outcomes of these events are uncertain and outside the control of the bettor, or hinge on a game of chance, these prediction market platforms fit the legal definition of gambling in New York, according to the NY OAG.
According to the NHY OAG announcement, “Coinbase and Gemini opened prediction markets available to New Yorkers over the age of 18.” The NY OAG alleges that “Coinbase and Gemini have failed to obtain a license from the New York State Gaming Commission, sidestepping their obligation to pay taxes like licensed casinos and mobile sports gambling platforms do.”
“This tax revenue funds public schools, sports programs for underserved youth, and problem gambling education and treatment,” according to the NY OAG, which further alleges that “Coinbase and Gemini’s prediction markets are also available to users between the ages of 18-20, even though New York law states that a person must be at least 21 years old to participate in mobile sports betting.
The NY OAG lawsuits also allege that Gemini and Coinbase are violating New York laws that forbid any betting on games in which New York college teams participate.
In the lawsuits, the NY OAG is asking the court to require Coinbase and Gemini to forfeit alleged illegal profits, distribute restitution to consumers who were purportedly harmed, and pay fines equal to three times the profits the companies made through their alleged unlawful actions.
The lawsuits are the latest actions in the NY OAG’s continued efforts to enforce New York laws in the crypto and gambling industries and protect New York consumers. In fact, the NY OAG has issued multiple consumer alerts warning New Yorkers about the “hazards of gambling,” and has issued industry alerts to encourage compliance with state laws.
The NY OAG has also taken action to prevent illegal gambling in New York. In January of 2026, the NY OAG sued a video game developer for allegedly promoting gambling illegally through video games supposedly popular with children and teenagers. In June 2025, the NY OAG announced that it had stopped a number of purportedly illegal online sweepstakes casinos.
Contact an experienced New York Attorney General subpoena defense lawyer if you are the subject of a NY OAG investigation.
Richard B. Newman is an advertising practices compliance and defense attorney at Hinch Newman LLP.
Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.
Topics
Archives
About This Blog and Hinch Newman’s Advertising + Marketing Practice
Hinch Newman LLP’s advertising and marketing practice includes two decades successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. As FTC attorneys, the firm possesses superior compliance knowledge and deep legal advocacy experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. It has also been selected to author the Consumer Protection Section of the prestigious American Lawyer Media International Federal Trade Commission: Law, Practice and Procedure Treatise, a comprehensive resource for developments of concern to advertisers, marketers and legal professionals that practice before the Commission. Through these advertising and marketing law updates, Hinch Newman LLP provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/ judicial process.