New York Attorney General Letitia James sued Coinbase Financial Markets and Gemini Titan on April 21, accusing them of running prediction markets in violation of state gambling laws.
In the petitions, James said that Coinbase and Gemini failed to obtain the gambling licenses required for their “event contract” platforms, which allow users to wager on the outcomes of real-world events ranging from weather to sports to elections.
Both platforms allow users to take a “Yes” or “No” position on whether a future event will occur by purchasing contracts priced in cents that reflect the market’s implied odds. The contracts pay out only if the predicted event happens….