New York vs Coinbase: Prediction Market Lawsuit

0:00New York just dropped a major lawsuit on Coinbase and Gemini, calling their prediction market platforms straight up illegal gambling. Attorney General Latisha James filed a Tuesday in Manhattan Court, demanding they shut down in the state until they get licenses from the Gaming Commission. These platforms let users bet on events like soccer games or oil prices, but the state says they're dodging gambling rules. Both companies kicked off as crypto exchanges before jumping into predictions. Gemini, run by the Winklevoss brothers, launched theirs in December. Coinbase followed in January. They're pitching it as event contracts, not bets, to skirt tight state regs on casinos and sportsbooks. James is fired up, saying these opts lack safeguards and hook young users into addictive habits. Big issue, they let 18-year-olds play, while state law bans anyone under 21. Plus, they're skipping the 51% tax hit that license spots pay on revenues. Meanwhile, the prediction game is blowing up with fights everywhere.

1:02Carl Shee sued New York's Gaming Commission back in October, claiming federal oversight Trump state rules. Coinbase hit Connecticut, Michigan, and Illinois, with suits in December and the Federal Commodity Futures Trading Commission jumped in this month. Against Arizona and others, a federal judge last week paused Arizona's crackdown, including charges on Carl Shee, ruling the Fed's might win on preemption. This New York battle could set the tone for how states wrangle these crypto-fueled betting frontiers. That's your update from Canada News Today, powered by AI.