Kentucky targets prediction markets, puts red state in potential clash with Trump team

PolicyKentucky targets prediction markets, puts red state in potential clash with Trump teamPresident Donald Trump has taken the stance that states have no business with firms like Kalshi and Polymarket, and now a staunch GOP state is defying that view.By Jesse Hamilton|Edited by Nikhilesh DeUpdated Jun 17, 2026, 9:55 p.m. Published Jun 17, 2026, 9:20 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowKentucky has joined with the other U.S. states that have brought lawsuits against prediction market platforms engaging in sports betting.The state adds a wrinkle in the legal fight with the industry, because it's a politically conservative state that's been a supporter of President Donald Trump, though the president sides with his federal regulator and the prediction market firms.Kentucky's attorney general has sued leading prediction market firms Kalshi and Polymarket, accusing them of offering illegal sports betting without a license, adding its name to the growing list of states opposing the rise of the industry.But Kentucky is also strongly Republican in its overall politics, having voted for President Donald Trump with a 64% majority in 2024, though Governor Andy Beshear is a Democrat. Now it's found itself in the position of legally battling against one of Trump's own policy positions, that prediction market oversight belongs in the hands of the federal Commodity Futures Trading Commission.For its part, Kentucky is making a similar case against the event-contract platforms as the other states, that they aren't licensed for gaming there. Additionally, it said in a Wednesday statement that the companies and their partners — naming Coinbase, Robinhood and Webull — don't offer resources for people with gambling problems, as required under local law.“Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws,” said Kentucky Attorney General Russell Colema…

Kentucky targets prediction markets, puts red state in potential clash with Trump team

Coins in this story

Related stories

Fidelity joins Wall Street's race to manage stablecoin reserves

Here is how Coinbase plan to survive the crypto downturn by ditching its reliance on trading fees

Blockchain.com deepens onchain stock offerings as tokenized equities market grows