Story perspectives

NY Attorney General Sues Coinbase, Gemini Over Illegal Gambling

4/23/2026

Summary

James Sues Crypto Platforms

Attorney General Letitia James sued Coinbase and Gemini Titan in Manhattan State Supreme Court Tuesday, alleging illegal gambling.
The suits claim the platforms opened markets letting users bet on events without a New York Gaming Commission license and allowed participants under 21, the gambling age.
Coinbase chief legal officer Paul Grewal said the markets are exchanges and it will fight for oversight, while Gemini gave no comment.

Summary

Kalshi Faces Crackdown

The Third Circuit Court of Appeals ruled New Jersey cannot regulate Kalshi because its wagers are federally regulated swaps.
The New York State Gambling Commission served Kalshi a cease-and-desist letter, adding to its legal battles.
More than a dozen states have sued prediction-market platforms, creating a coordinated crackdown that pits state gambling laws against calls for exclusive federal oversight.

Summary

CFTC Sues States

Coinbase’s prediction-market service runs on the CFTC-regulated exchange Kalshi, enabling it to operate in all 50 states.
James sued Valve over loot boxes as illegal gambling and later complained that both exchanges let 18-year-olds bet, despite New York’s 21-plus mobile sports wagering rule.
The Commodity Futures Trading Commission sued Illinois, Arizona and Connecticut this month for trying to shut down federally regulated designated contract markets.

History

Historical Context

In 2018, the U.S. Supreme Court ruled that the Professional and Amateur Sports Protection Act was unconstitutional, allowing states like New Jersey to regulate sports betting. This decision followed New Jersey's long legal battle to legalize sports wagering, which began with a voter referendum in 2011. The recent Third Circuit ruling against state regulation of Kalshi highlights ongoing tensions between state and federal gambling laws.

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James Sues Crypto Platforms

Attorney General Letitia James sued Coinbase and Gemini Titan in Manhattan State Supreme Court Tuesday, alleging illegal gambling.
The suits claim the platforms opened markets letting users bet on events without a New York Gaming Commission license and allowed participants under 21, the gambling age.
Coinbase chief legal officer Paul Grewal said the markets are exchanges and it will fight for oversight, while Gemini gave no comment.

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