Polymarket · Donald Trump · Republicans · CoinDesk
Kentucky targets prediction markets, puts red state in potential clash with Trump team
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Kentucky's attorney general has sued leading prediction market firms Kalshi and Polymarket, accusing them of offering illegal sports betting without a license, adding its name to the growing list of states opposing the rise of the industry.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- UPDATE (June 17, 2026, 21:27 UTC): Adds response from Polymarket
- But Kentucky is also strongly Republican in its overall politics, having voted for President Donald Trump with a 64% majority in 2024, though Governor Andy Beshear is a Democrat
- And former Securities and Exchange Commission and CFTC Chairman Gary Gensler, who took on the crypto industry during his tenure atop the SEC, recently filed a brief with the Sixth Circuit Court
Summary
Kentucky has joined with the other U.S. states that have brought lawsuits against prediction market platforms engaging in sports betting. The state adds a wrinkle in the legal fight with the industry, because it's a politically conservative state that's been a supporter of President Donald Trump, though the president sides with his federal regulator and the prediction market firms. But Kentucky is also strongly Republican in its overall politics, having voted for President Donald Trump with a 64% majority in 2024, though Governor Andy Beshear is a Democrat. For its part, Kentucky is making a similar case against the event-contract platforms as the other states, that they aren't licensed for gaming there.