Kentucky is the ninth state to be sued by the Commodity Futures Trading Commission in its escalating fight over sports-event contracts, Front Office Sports has learned, a move that follows last week’s lawsuits by Kentucky’s attorney general against Kalshi and Polymarket.
The suit is expected to be filed Tuesday, according to a source familiar with the matter. It continues the CFTC’s recent pattern of suing states that have themselves taken action against prediction-market platforms. Most recently, the federal regulator took aim at New Mexico on June 12. It has previously sued Illinois, Arizona, Connecticut, New York, Rhode Island, Wisconsin, and Minnesota.
All nine suits have been brought since April 2. CFTC chairman Michael Selig told FOS in April that he felt compelled to support federally registered prediction-market platforms, but would abide by a potential U.S. Supreme Court decision on sports event contracts, something that is widely expected as soon as next year. “We will always follow the law,” Selig said. “We will always look to the courts.”
The CFTC’s lawsuit comes less than a week after Kentucky AG Russell Coleman launched separate lawsuits against Kalshi and Polymarket in state court, alleging they are flouting state gambling laws. Traditional sports betting has been legal in Kentucky since 2023, and is overseen by the Kentucky Horse Racing and Gaming Corporation. “Simply calling them ‘sports event contracts’ doesn’t make them legal,” the AG said in a June 17 statement. The suit against Kalshi also named as defendants Robinhood and Coinbase, claiming those are considered “affiliates” of the company because they have partnered to offer sports event contracts in Kentucky.
