New York Sues Coinbase, Gemini for Illegal Gambling

0:00It's April 21st. Welcome in. This is Durham News Today, where local news meets AI. I'm Corey with the story. New York just dropped a major lawsuit against Coinbase and Gemini, calling their prediction market platform straight up illegal gambling. Attorney General Letitia James filed it Tuesday in Manhattan Court, demanding they shut down in the state until they get licenses from the gaming. Commission. She says these aren't clever loopholes. They're wagering disguised as the event contracts. These platforms kicked off recently, with Gemini launching in December and Coinbase jumping in during January. Both started as crypto exchanges, but now let users bet on stuff like soccer matches, fed share picks or oil prices. Gemini's sight even brags that crypto was just the start. The suit hits hard on risks, like letting 18-year-old play when state law bans anyone under 21 from gambling. Plus, they're dodging the 51% tax that license sportsbooks and casinos pay, shorting the state's revenue big time. Meanwhile, similar fights are popping off elsewhere.

1:05Kowshi sued New York's gaming commission back in October, claiming federal oversight Trump state rules. Coinbase took Connecticut, Michigan, and Illinois to court in December, and the federal commodity futures trading commission just sued Arizona. Connecticut and Illinois too. Last week a federal judge pauls Arizona's crackdown, including charges against Kowshi, saying the feds might win on preemption. This battle over prediction markets is heating up nationwide, blurring lines between bets and investments.