A coalition including Kalshi and Polymarket has sued the state of Kentucky, alleging that its 14.25% transaction tax is unconstitutional and discriminatory.

CoinFeed reported on June 14 that, according to Abcnews, an industry alliance comprised of companies such as Kalshi, Crypto.com, and Polymarket has filed a lawsuit seeking to block Kentucky's 14.25% transaction tax on prediction market operations. The Kentucky legislature passed a 14.25% tax on transaction fees charged to prediction market operators in April, and the lawsuit argues that this tax is discriminatory, unconstitutional, and has been superseded by federal law. Kentucky Attorney General Russell Coleman stated that he will fully defend this legal challenge. "I can assure you that our office will defend these regulations and protect the people of our state from out-of-state companies attempting to repeal Kentucky's sports betting laws."