Kentucky sues Polymarket, Kalshi and Coinbase over prediction market sports betting

Kentucky sued Polymarket, Kalshi and partners Coinbase, Robinhood and Webull, accusing them of running unlicensed sports betting. At least 17 other states have taken similar action against prediction markets.

• Kentucky AG says Polymarket and Kalshi are operating illegal sportsbooks without state gaming licenses.
• The lawsuit also names Kalshi's partners Coinbase, Robinhood and Webull as defendants.
• At least 17 US states have sued prediction market operators over sports event contracts.
• Kalshi and Polymarket argue they are federally regulated by the CFTC, not states.
• The platforms recorded $25 billion in monthly trading volume in May, per Token Terminal.

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