Kentucky files lawsuits against prediction market platforms Kalshi and Polymarket, alleging they offer sports-event contracts that function as unlicensed sports gambling in the state. The complaints argue the companies bypass Kentucky’s existing sports wagering and gambling regulations by conducting wagering activities through prediction-market products.
According to reporting, Kentucky also names additional parties associated with Kalshi, including Coinbase, Robinhood, and Webull, tying the legal action to the broader distribution or accessibility of these offerings to users in Kentucky. The lawsuits represent Kentucky’s entry into an expanding legal dispute involving prediction markets and the extent to which their products fall under gambling and wagering laws.
Across the coverage, the central claim is that the platforms are operating in Kentucky in a way that requires licensing or compliance with state gambling rules, and that they do not meet those requirements. The cases add to similar actions brought by other states against prediction market operators over comparable issues related to regulation, licensing, and the legal characterization of sports-event contracts.
