According to court documents, James is suing Coinbase for allegedly running an illegal gambling operation in New York through its delivery of event contracts. The AG alleges that Coinbase facilitates illegal gambling by operating in the state without a gaming license from the New York State Gaming Commission. As a result, James is seeking a court order to require Coinbase to pay a monetary penalty, forfeit “illegal profits,” and pay restitution.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” said James in a press release.
In the suit, the AG directly points to Coinbase’s sports event contracts, which are considered illegal gambling activity as the company does not hold a gaming license. James provides specific examples of how the event contracts resemble..