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A coalition sues to block Kentucky’s new 14.25% prediction markets tax
The coalition says the levy is discriminatory and higher than Kentucky’s 9.75% horse-track tax, pushing traders toward less regulated platforms.
- On Friday, a Coalition including Kalshi, Crypto, and Polymarket filed a lawsuit challenging Kentucky's new 14.25% excise tax on prediction markets, claiming the levy is unconstitutional.
- The Kentucky General Assembly enacted the 14.25% tax in April on prediction market transaction fees, though legal documents argue no other State imposes such a discriminatory excise tax on federally designated exchanges.
- Fair Markets contends the tax is discriminatory, noting Kentucky applies a lower 9.75% tax rate to its "favored incumbent industry," horse racing tracks. The lawsuit argues higher fees push users toward unregulated platforms.
- Kentucky Attorney General Russell Coleman vowed to defend the statutes, using gambling terminology to characterize the lawsuit as an attempt by out-of-State companies to "cancel Kentucky's sports betting laws."
- Prediction markets face intense scrutiny regarding legitimacy following high-profile controversies, including investigations into Congressman George Santos and an Army soldier who allegedly used classified information to profit $400,000.
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According to ChainCatcher, citing Abcnews, a coalition of prediction market platforms, including Kalshi, Crypto.com, and Polymarket, filed a lawsuit in state court this Friday seeking to block Kentucky's newly implemented 14.25% prediction market transaction tax. Passed by the Kentucky legislature in April, the tax levies 14.25% on transaction fees from prediction market platforms, higher than the approximately 9.75% tax rate on the local horse …
Coverage Details
Total News Sources22
Leaning Left10Leaning Right2Center8Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 40%
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