Kentucky sues Kalshi, Polymarket, joining prediction market legal battle

Written by Jesse Coghlanstaff editorReviewed by Felix Ngstaff editorWritten by Jesse Coghlanstaff editorReviewed by Felix Ngstaff editorKentucky sues Kalshi, Polymarket, joining prediction market legal battleLatest NewsPublishedJun 18, 2026Kentucky has sued Polymarket, Kalshi and Kalshi’s partners Coinbase, Robinhood and Webull, over offering sports event contracts in the state. Kentucky has sued five prediction market platforms, including Kalshi and Polymarket, adding to a wave of US states launching legal fights with prediction markets over sports event contracts.State Attorney General Russell Coleman said in a statement Wednesday that his office filed lawsuits in state court against Polymarket and Kalshi — also naming Kalshi partners Coinbase, Robinhood and Webull — accusing them of “operating unlicensed and illegal sports betting and gambling platforms.”“Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws,” Coleman said. “These multi-billion dollar corporations and their legal fictions don’t pass the sniff test. As one of our state legislative leaders said it best, ‘If it looks like a duck and quacks like a duck…’”Kalshi and Polymarket together recorded $25 billion in monthly trading volume in May, per Token Terminal. Lawsuits from multiple US states risk locking them out of some of the largest markets in the US.Kentucky Attorney General Russell Coleman gives a speech in April. Source: YouTubeAt least 17 other states have taken prediction market operators to court, attracting the involvement of the US Commodity Futures Trading Commission and the White House.Multiple state authorities have argued that event contracts tied to sports are sports betting and require state-level licenses. Prediction markets have argued that their event contracts are swaps regulated under federal commodities law.That position is backed by the CFTC, which has sued eight states after they took action against prediction markets, claiming they were …

Kentucky sues Kalshi, Polymarket, joining prediction market legal battle

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