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Kentucky Attorney General Sues Kalshi, Polymarket and VGW over Illegal Gambling Claims
The coalition says the tax is discriminatory and unconstitutional, while Kentucky officials say the platforms are running illegal gambling and sports betting businesses.
- On Wednesday, Kentucky Attorney General Russell Coleman filed three lawsuits against Kalshi, Polymarket, and VGW, alleging they operate unlicensed gambling platforms in violation of Commonwealth law.
- The Coalition of Fair Markets is simultaneously suing Kentucky to block a new 14.25% excise tax on prediction market transaction fees, claiming the law is discriminatory and unconstitutional.
- Coleman noted sports betting comprised approximately 70% of Kalshi's trading volume during a 2025 sample period, with 89% of its nearly $23 billion in contract volume tied to sports wagering.
- Attorney Stephen Stricklin argues the tax may disguise an attempt to regulate federally governed markets, while lawsuits also allege Coinbase and Robinhood fail to provide required gambling problem resources.
- President Donald Trump recently defended prediction markets, asserting the Commodity Futures Trading Commission should maintain exclusive authority, positioning Kentucky's enforcement against federal policy.
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20 Articles
20 Articles
The Paducah SunReposted by 
kentuckylantern.com
kentuckylantern.comDueling lawsuits: KY AG sues prediction market companies a week after they sue over taxes
Republican Kentucky Attorney General Russell Coleman is suing two prominent prediction market companies over allegations that they operate unlicensed and illegal sports gambling operations.
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Coverage Details
Total News Sources20
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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