Kentucky Sues Prediction Markets Kalshi and Polymarket for Unlicensed Illegal Sports Betting Operations

CoinFeed, June 18 – According to CoinDesk, Kentucky Attorney General Russell Coleman has sued Kalshi and Polymarket, accusing them of offering illegal sports betting without a state gambling license, putting this Republican state—which voted 64% for Trump in 2024—at odds with Trump's stance. Trump previously stated that prediction market regulation should fall under the federal CFTC's jurisdiction and publicly supported CFTC Chairman Mike Selig in maintaining the agency's exclusive authority over event contracts. Kentucky also alleges that these companies and their partners (Coinbase, Robinhood, and Webull) failed to provide gambling problem assistance resources as required by local law. The CFTC has previously sued eight states to defend its exclusive jurisdiction over prediction markets.