Kentucky Sues Kalshi, Polymarket as Prediction Market Legal Battle Swells
Kentucky has sued Kalshi and Polymarket, alleging they are running illegal sportsbooks and violating state gambling laws by offering sports-like wagers without registering as gambling operators. State officials say this lets them avoid requirements such as providing addiction resources. Kentucky also sued VGW over alleged illegal sweepstakes casino activity. The case is part of a broader national fight over prediction markets. Many states have challenged these platforms under state gambling law, while the companies argue their contracts are federally regulated “swaps” overseen by the CFTC. The Trump administration has backed that view and has aggressively opposed state regulation, with the CFTC and Justice Department suing states that try to act. Court outcomes have been mixed so far, and the dispute is likely headed to the Supreme Court.
