New York sues Coinbase, Gemini over alleged gambling law violations

New York authorities have sued Coinbase (COIN) and Gemini (GEMI) for violating state law, Unfolded reported, citing Reuters. The lawsuit alleges that the companies' prediction market subsidiaries broke state gambling laws. This action follows a warning issued by the New York Attorney General in February regarding potential gambling law violations by prediction markets. In January, Coinbase launched a prediction market product for U.S. users in partnership with Kalshi. Meanwhile, Gemini's subsidiary, Gemini Titan, has been operating its own platform after obtaining a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC). The lawsuit was filed amid escalating legal disputes between state gambling regulators and federal agencies like the CFTC.