Kentucky has filed lawsuits against Kalshi, Polymarket, and related entities, accusing them of operating unlicensed, illegal sports betting and gambling platforms in the state.
According to a Wednesday statement, the state's Attorney General Russell Coleman filed three separate lawsuits — one against Kalshi and affiliates, including Coinbase, another against Polymarket and affiliates, and a third against online casino platform VGW.
"Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws," said Coleman. "These multi-billion dollar corporations and their legal fictions don't pass the sniff test."
The statement argued that prediction market platforms bypass state consumer protection and tax requirements under gambling laws, and continue to operate without a Kentucky gaming license.
The state took issue with the platforms' offering of sports-related event contracts, saying that 89% of Kalshi's $23 billion contract volume came from sports wagering. It also said Polymarket spreads "false and misleading" advertisements that it is allowed to offer sports betting in Kentucky.
