New York Attorney General Letitia James has filed a lawsuit against Coinbase Financial Markets and Gemini Titan for operating illegal gambling businesses in violation of state law, following the launch of event contract trading from both entities.
James is seeking a permanent injunction, an accounting, disgorgement, restitution and civil penalties against Coinbase and Gemini, while also having filed a motion for a temporary restraining order and preliminary injunction.
According to the legal filing, Gemini announced its intentions to enter prediction markets on December 10 by offering event contract trading as part of a “one-stop financial super app” for consumers.
Coinbase unveiled its prediction markets product on December 17 and confirmed its expansion to all 50 US states by January 2026. The operator is facing an additional lawsuit in New York over claims that it helps facilitate underage gambling on offshore casinos.
In New Jersey, regulators officially watched the deadline to file for a rehearing in its case against Kalshi pass on April 20, potentially looking ahead to a July 6 deadline to file a petition with the US Supreme Court.
The July 6 deadline could also be extended for up to 60 days if good cause is provided by New Jersey regulators.
The Third Circuit Appeals Court in New Jersey affirmed the preliminary injunction issued in favor of Kalshi on April 6, ruling that the Commodity Futures Trading Commission (CFTC) has “exclusive jurisdiction” over the operator and the trading of sports-related event contracts.
Court officials also ruled that New Jersey regulators, such as the state’s Division of Gaming Enforcement, are prohibited from attempting to prevent Kalshi from offering prediction markets to eligible residents.
Despite the victory in New Jersey, Kalshi was prohibited from offering contracts related to sporting events in Nevada, following a ruling from Carson City District Court Judge Jason Woodbury.
The NBA advanced discussions with Kalshi and Polymarket on forming a new partnership with both operators on April 16, potentially joining the MLB and NHL in collaborating with prediction market entities
