Kentucky Sues Kalshi and Polymarket, Defying Trump's Stance on Prediction Markets
Kentucky has filed lawsuits against prediction market platforms Kalshi and Polymarket, accusing them of operating illegal sports betting without a license. The state, which voted 64% for Donald Trump in 2024, now finds itself legally opposing a key policy stance of the president, who has defended the CFTC's exclusive authority over prediction markets. Attorney General Russell Coleman, a Republican, stated that the companies and their partners—including Coinbase, Robinhood, and Webull—fail to provide resources for gambling addiction as required by state law. The CFTC has sued multiple states over similar actions, and Chairman Mike Selig maintains that the agency has sole regulatory power over event contracts. Trump publicly supported Selig, calling the state-level challenges a threat to the industry. Polymarket vowed to address the claims, noting the CFTC's established framework. The legal battle is expected to escalate, with many observers anticipating a Supreme Court resolution.
Key facts
- Kentucky sues Kalshi and Polymarket for unlicensed sports betting.
- State defies Trump's stance favoring CFTC authority over prediction markets.
- Attorney General Coleman says firms lack gambling addiction resources.
- CFTC has sued eight states over prediction market oversight.
- Polymarket vows to contest the lawsuit, citing CFTC framework.