Kentucky Attorney General Targets Prediction Markets in New Lawsuits

BeInCrypto2026/06/18 12:42

By:BeInCrypto

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Kentucky Attorney General Russell Coleman sued prediction markets Kalshi and Polymarket, as well as VGW, a firm that operates online casino-style games. The lawsuits accuse the companies of running unlicensed, illegal sports betting and gambling across the state. What Kentucky Attorney General Alleges Coleman alleges that the prediction market platforms allow users to wager on game winners, point spreads, and player statistics. He says they skip the consumer protections and taxes that state gambling laws require. The complaint claims that sports betting accounted for roughly 70% of Kalshis trading volume during a 2025 sample period. In addition, of the nearly $23 billion in contract volume last year, 89% came from sports wagering. Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws. These multi-billion dollar corporations and their legal fictions dont pass the sniff test. Attorney General Russell Coleman (@kyoag) June 17, 2026 The action followed a coalition representing both platforms suing Kentucky, challenging its new tax and contracting restrictions. Kentuckys attempt to impose a 14.25% excise tax whenever any Kentucky resident purchases an event contract anywhere in the country, and whenever any resident from any State purchases an event contract while physically present in Kentucky, plainly concerns or regards exchange-traded derivatives falling within the CFTCs exclusive jurisdiction, the document reads. Platforms Point to Federal Regulations Meanwhile, Kalshi pointed to its federal oversight in a statement shared with BeInCrypto. Kalshi is a federally regulated exchange. The CFTC is our regulator, not the states. Courts have already recognized this, and were confident they will here too, Kalshi spokesperson, Jacki McGavick, mentioned. Polymarket echoed that position in a statement to BeInCrypto. This action runs counter to the CFTCs established framework for regulating prediction markets. We look forward to addressing these claims through the appropriate legal process, a Polymarket spokesperson said. A VGW spokesperson also stated that the firm plans to defend itself vigorously against the lawsuit. We respectfully reject the Kentucky Attorney Generals claims and plan to vigorously defend this lawsuit. We have lawfully operated in the US for more than a decade, delivering online Social Plus games to millions of Americans who value the freedom to enjoy the free, fun entertainment that this lawsuit effectively targets. With values including our players come first and we do whats right, we pride ourselves on creating not only the best games, player experiences and entertainment, but ensuring this is done safely and responsibly with robust consumer protections, the spokesperson shared with BeInCrypto. States that move against prediction markets have met resistance from the Commodity Futures Trading Commission (CFTC). The agency argues that it holds sole authority over event contracts. The CFTC has already sued several states, including Arizona and Minnesota.

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11:45 AM EDT, 10/06/2026 (MT Newswires) -- All three major US stock indexes were up in late-morning trading Tuesday, as oil prices and Treasury yields were down. In company news, Alphabet's (GOOG, GOOGL) Google has entered into a 20-year deal with Constellation Energy (CEG) to add 890 megawatts of nuclear power to the PJM interconnection grid, the companies said Tuesday. The agreement will enable over $4.3 billion in investments in new equipment and technology at 11 Constellation nuclear facilities in Illinois, Pennsylvania and New Jersey, the companies said. Alphabet's Class C and Class A shares were up 0.3% and 0.6%, respectively, around midday. Constellation shares were up 13.7%. Marvell Technology (MRVL) now expects to generate revenue of $12 billion in 2026 and $18 billion in 2027, up from its previous guidance of a combined $20 billion over that period, Chairman and Chief Executive Matthew Murphy said Tuesday at a conference, according to a transcript. Marvell shares were up 7.0%. McKesson (MCK) and CD&R have entered into a definitive agreement to acquire Option Care Health (OPCH) for $32.05 per share, reflecting a total enterprise value of about $5.8 billion, the companies said Tuesday. After the deal closes, which is expected to occur in H1 2027, CD&R will hold a majority interest of 51% in Option Care Health, while McKesson will invest $1.4 billion to hold the remaining 49%, the companies said. McKesson shares were up 0.1%, while Option Care shares were up 32.7%. Uber Technologies (UBER) has agreed to acquire ezCater for $2.3 billion in cash, the ride-hailing company said Tuesday. The deal, expected to close in the coming months, will expand Uber's catering orders and give restaurants access to larger orders and more customers, the company said. Uber shares were down 0.4%. Energy Transfer (ET) said Tuesday it has entered into a definitive agreement to acquire Vaquero Midstream in a bolt-on deal valued at about $2.63 billion. The deal consideration will consist of $1.95 billion in cash and about 33.3 mill

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