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CFTC sues Kentucky over prediction market lawsuits
The agency says Kentucky’s 14.25% tax and state gambling rules would effectively bar prediction markets from operating.
- On Tuesday, the Commodity Futures Trading Commission filed a federal lawsuit against Kentucky, naming Governor Andrew Beshear and Attorney General Russell Coleman, to block state enforcement against prediction markets Kalshi and Polymarket.
- Last week, Coleman sued the firms, alleging they operate unlicensed, illegal sportsbooks in violation of state gambling and sports wagering laws.
- The CFTC argued these event contracts are 'swaps' under federal law and criticized a 14.25% state tax, stating it essentially makes operation in Kentucky impossible.
- Kentucky marks the ninth state the CFTC has targeted to defend exclusive jurisdiction, as 20 states are now actively involved in litigation against these prediction market platforms.
- In May, President Donald Trump provided moral support to the agency, stating it was 'critically important' that the regulator remain the sole authority on prediction markets.
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26 Articles
The Paducah Sun+3 Reposted by 3 other sources
Trump administration sues Kentucky to block challenges to prediction market regulations
A Trump administration organization that oversees regulation of derivatives markets has sued Kentucky to block efforts by the state’s attorney general to prevent two prediction market companies from operating what he says are unlicensed and illegal sports gambling operations.
CFTC Sues Kentucky in Growing Prediction Market State Scramble
The federal agency that regulates derivatives trading sued Kentucky on Tuesday, claiming the state led by a mixed Democratic-Republican governor and attorney general is overstepping on its turf, the newest legal scuffle for control of the booming prediction markets industry.
·Arlington, United States
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Total News Sources26
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
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