Kentucky moves against prediction market platforms Kalshi and Polymarket, and federal regulators respond with a separate lawsuit over jurisdiction. Kentucky Attorney General Russell Coleman files claims alleging the platforms offer sports-event contracts that function as unlicensed sports gambling in the state and that they bypass Kentucky’s gambling and regulatory requirements. Coverage from multiple outlets says Kentucky also targets Kalshi-related entities, including partners such as Coinbase and Robinhood, as well as Webull.
Separately, the U.S. Commodity Futures Trading Commission (CFTC) sues Kentucky, according to reporting, arguing that it has exclusive regulatory jurisdiction over the platforms and their products. The CFTC’s action is presented as part of a broader, ongoing legal dispute among states and federal regulators over how prediction markets should be regulated and which agency’s authority applies.
Together, the reports describe Kentucky as joining a growing number of states taking legal steps against prediction markets, while also facing federal pushback centered on the scope of the CFTC’s authority.
