New York Sues Coinbase and Gemini for Gambling

What This Means for Crypto Casino Players

These proceedings are playing out within US jurisdiction, so British players are not directly subject to New York gambling law. The outcome nonetheless carries significance beyond American borders. Coinbase and Gemini are global exchanges used by UK players to purchase crypto before depositing at online platforms, and a major court victory for the New York AG could mark the start of a broader regulatory push against mainstream exchanges that host betting-style products. All crypto sports betting platforms available to UK players hold international licences—typically Curaçao—and are not regulated by the UK Gambling Commission. Players can review currently available operators on our best crypto sports betting sites for UK players.

The New York complaints set out multiple layers of alleged wrongdoing. Neither Coinbase nor Gemini holds a New York State Gaming Commission licence, which the AG contends is a prerequisite for offering any form of sports wagering to state residents. Both platforms permitted participants aged 18 to 20 to place bets, below the minimum age of 21 that New York law requires for mobile sports betting. Wagers on fixtures involving New York college teams—prohibited under state statute—were also accepted. Operating without a licence further allowed the companies to avoid the approximately 51% gross revenue tax levied on licensed bookmakers, which the AG said denies the state funds earmarked for public services and addiction support.

A Widening Regulatory Campaign

The New York lawsuits represent a significant escalation in the battle between US state authorities and crypto prediction platforms. Previous enforcement actions targeted smaller or more specialised operators such as Kalshi and Polymarket; the decision to pursue Coinbase and Gemini—two of the world's largest crypto exchanges by trading volume—signals that regulators are prepared to challenge the biggest names in the industry. Coinbase's Chief Legal Officer, Paul Grewal, responded that the platforms are “federally regulated national exchanges registered with the CFTC,” the same argument Kalshi has made throughout its own legal battles.

UK observers will note that the core legal question—whether a contract tied to a sports outcome is a financial derivative or a gambling product—has no settled answer in British law either. The UK Gambling Commission has periodically examined how crypto-linked wagering products should be classified, and the detailed legal arguments being generated in US courtrooms are being read attentively by regulators and compliance teams across Europe. A ruling that prediction contracts are financial instruments would weaken the legal basis for gambling oversight of these products in multiple jurisdictions simultaneously.

What to Watch

A New York court is expected to schedule a preliminary injunction hearing in the coming weeks, at which a judge will determine whether to suspend the prediction market operations on both exchanges while the cases are decided. A federal appeals court ruling on a related Kalshi case is also imminent, and an outcome adverse to the platforms in either forum would increase the pressure on exchanges globally to review their prediction product offerings. British players who use Coinbase or Gemini as an on-ramp to crypto gambling should monitor any platform communications about product availability changes. The CFTC's formal response to the state lawsuits, anticipated before the end of April, will signal whether the agency intends to intervene directly on behalf of the exchanges.