TLDR Tech / Crypto
Kentucky sues Kalshi and Polymarket
Kentucky Attorney General Russell Coleman has filed lawsuits in Franklin Circuit Court against Kalshi and Polymarket, alleging they operate illegal gambling platforms in the state by letting users wager on game outcomes, point spreads, and player statistics without a state license. The companies' defense rests on CFTC federal preemption. Kalshi's spokesperson said "the CFTC is our regulator, not the states", making the case a direct test of whether state gambling law can reach federally regulated prediction market exchanges. More than a dozen states, including Montana, Nevada, New York, and New Jersey, have sent cease-and-desist letters or taken similar legal steps, and new Kentucky legislation taking effect July 15 will prohibit licensed sportsbooks in the state from partnering with prediction market operators.
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