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.
26 Articles
26 Articles
The Paducah Sun
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.
The Prediction Markets Strike Back... and They Brought a Friend
Even those with short memories may recollect a post I wrote this last weekend about Kentucky’s effort to regulate prediction markets. The Trump administration has weighed in: The Commodity Futures Trading Commission filed the lawsuit against Kentucky in federal court Tuesday. Republican Attorney General Russell Coleman, along with Democratic Gov. Andy Beshear, Department of Revenue Commissioner Thomas Miller and the Kentucky Horse Racing and Ga…
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