Kentucky sues Kalshi, Polymarket over unlicensed betting

Kentucky has filed lawsuits against prediction market platforms Kalshi and Polymarket, accusing them of operating unlicensed sports betting operations in the state. The legal complaints, filed by Attorney General Russell Coleman on June 17, 2026, in Franklin Circuit Court, also name Kalshi’s partners Coinbase, Robinhood, and Webull as defendants. The state alleges these companies are offering sports wagering without a Kentucky gaming license, violating state law.

The lawsuits argue that the platforms’ markets tied to game winners, point spreads, and player statistics constitute sports wagering under Kentucky law, even when labeled as “event contracts.” The state contends these products are functionally identical to bets offered by licensed sportsbooks. Furthermore, Kentucky accuses the platforms of failing to provide adequate tools to help users with gambling problems, a requirement for licensed operators in the state.

In response, the companies have rejected state jurisdiction. A Kalshi spokesperson stated the company is a federally regulated exchange under the Commodity Futures Trading Commission (CFTC), asserting “the CFTC is our regulator, not the states.” Polymarket...