Kentucky sues Kalshi, Polymarket, joining prediction market legal battle
Kentucky has sued Kalshi, Polymarket, and related partners Coinbase, Robinhood, and Webull, accusing them of running unlicensed and illegal sports betting and gambling platforms through sports event contracts. The state says these contracts qualify as “sports wagering” under Kentucky law and claims the platforms lack required gaming licenses and responsible-gambling resources. The case adds to a widening national fight over prediction markets: at least 17 other states have challenged similar offerings, while the platforms argue their contracts are federally regulated swaps under CFTC oversight, not state-regulated betting. Kentucky’s action comes amid separate litigation over the state’s prediction-market tax, and courts have produced mixed results so far, with some rulings favoring regulators and others favoring the platforms.
