In short
- Kentucky sued Kalshi and Polymarket, alleging that they operated illegal betting platforms.
- The platforms argue that their deals fall under the oversight of the CFTC, a mandate supported by the Trump administration.
- The growing civil litigation battle is expected to be decided by the US Supreme Court.
Kentucky became the latest state to crack down on betting market platforms this week, accusing industry leaders Kalshi and Polymarket of operating illegal betting platforms.
“Kalshi and Polymarket are using illegal sports books in Kentucky and violating our laws,” said the state’s attorney general, Russell Coleman, words. “These multi-billion dollar corporations and their legal myths don’t pass the smell test.“
Kentucky is one of many states across the country that have taken action against market prediction platforms in recent months, citing violations of the state’s gambling laws.
The platforms claim that their wagers, even those that appear indistinguishable from sports betting to users, should be considered exchanges under the CFTC’s federal jurisdiction – a recommendation. to be helped and the economic administration of President Donald Trump.
The administration, led by President Trump, has been particularly aggressive in its fight against red and blue states alike in regulating the prediction markets. The CFTC and the Justice Department the defendant several countries trying to control these new planets, and they have promised to prosecute other countries that try to do the same.
These threats do not seem to have stopped other countries from making their voices heard on the issue.
In its lawsuit, the Kentucky regulator said that by avoiding registration as a gambling site, Kalshi and Polymarket have neglected other critical obligations, including providing resources to users to combat gambling.
The government also sued VGW, an online casino platform that allegedly offered illegal sweepstakes.
As lawsuits related to stock market predictions fly across the country, the results have changed. In the Sixth Circuit, for example, which oversees federal courts in Kentucky, Ohio, Tennessee, and Michigan, two district court judges acted. in the beginning on the side and government regulators, where one is involved on the side it is only a prediction market.
The issue is yet to be decided by the US Supreme Court.
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