Kentucky files lawsuit against Kalshi and Polymarket, challenging federal oversight of prediction markets favored by Trump.
Kentucky has sued prediction market platforms Kalshi and Polymarket, alleging illegal sports betting without state licenses. The move pits the Republican-led state against President Trump’s stance that federal regulators, not states, should oversee such markets.
The lawsuit aligns Kentucky with other states opposing prediction markets but creates tension with Trump’s support for federal oversight via the Commodity Futures Trading Commission. Kentucky voted 64% for Trump in 2024, yet its Democratic governor backs the legal challenge.
Prediction markets have faced growing scrutiny, with states arguing they operate as unlicensed gambling. The case adds a political dimension to the regulatory battle over event-contract platforms.