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\n\t\t\t\t\t\t\t\t\tNew York AG filed a lawsuit against prediction markets operated by Coinbase and Gemini. \t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The Attorney General for New York filed a lawsuit against the prediction market arms of Coinbase and Gemini on Tuesday. The claim is that these platforms violate state laws against illegal gambling.<\/p>\n
According to the petitions filed in the state court in Manhattan, Attorney General Letitia James argues that both Gemini and Coinbase have not obtained New York State Gaming Commission licenses to operate these markets.<\/p>\n
The AG also says<\/a> that the event contracts that the platforms allow users to bet on are \u201cquintessentially gambling.\u201d This is because the outcomes of those events are typically outside the bettors\u2019 control or amount to games of chance.<\/p>\n \u201cGambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,\u201d said AG James in a statement.<\/p>\n<\/blockquote>\n In response to the lawsuit, Paul Grewal, Chief Legal Officer at Coinbase, said that the company will \u201ccontinue to fight for the federal oversight of these markets that Congress intended.\u201d<\/p>\n The move comes at a time when prediction markets are surging in popularity. As\u00a0CryptoPotato\u00a0<\/em>recently reported<\/a>, Polymarket aims to raise another $400 million at a valuation of a whopping $15 billion, highlighting investor appetite and continuous expansion. Moreover, this came just a few weeks after Kalshi, Polymarket\u2019s main competitor, raised a massive $1 billion at a $22 billion valuation.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n\n
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