Kentucky has become the latest state to sue prediction market players like Kalshi and Polymarket, saying they are “operating illegal sportsbooks and breaking our laws.”
In an official release, Kentucky Attorney General Russell Coleman accused the platforms of using false and misleading advertisements suggesting they are authorized to offer sports wagering services in the state.
“These multi-billion dollar corporations and their legal fictions don’t pass the sniff test,“ Russell said. “As one of our state legislative leaders said it best: ‘If it looks like a duck and quacks like a duck…’”
The lawsuits come just days after two Democratic Party Senators in New Jersey made similar allegations against prediction market firms as they unveiled a bill to regulate the sector in the Garden State.
Similar legal battles are ongoing in states such as Ohio, Illinois, and Rhode Island. But the regulatory Commodity Futures Trading Commission (CFTC) continues to insist that it alone has the power to police the prediction market sector.
Kentucky to Sue Kalshi, Polymarket: ‘They’re Breaking Our Laws’
The CFTC says firms like Kalshi and Polymarket do not offer sportsbook wagering but allow traders to execute swap deals. That means states cannot police operators under their gambling laws, the regulator says.
The CFTC has taken an aggressive stance, launching lawsuits against states that have tried to sue Kalshi, Polymarket, and others.
Coleman complained that Polymarket “offers many of the same traditional sports bets that a licensed sportsbook would.”
These include moneylines, spread betting, wagers on point totals, parlays, and prop bets, the AG explained.
“Simply calling them sports event contracts doesn’t make them legal,” the AG’s office wrote in the press release.
Sweepstakes Casino Provider Also Hit With Lawsuit
The Kentucky AG said in the same release that it has also launched a separate lawsuit against the online sweepstakes casino operator VGW.
The AG said a study had proven sweepstakes casinos “exploit the same psychological triggers related to addiction” as conventional casinos.
Coleman’s office said VGW platforms offer two types of chips: a free token and one with a cash value.
“Users pay real money for so-called Sweeps Coins just like gamblers pay for poker chips at a real casino,” the AG’s office wrote. It added that players can effectively “cash out their winnings.”
“This company may use new technology and a new scheme to hide, but the reality is the same,” said Coleman. “Our office has a duty to stop illegal gambling in Kentucky regardless of how it’s packaged.”
Multiple states have previously launched lawsuits against VGW and other operators. These include California, Maryland, Delaware, Louisiana, Mississippi, New York, and Montana. VGW and other sweepstakes providers have agreed to halt service provision to residents of many states.
Last month, Tennessee Governor Bill Lee signed a fast-tracked act that completely bans sweepstakes casinos that use dual-currency systems. The bill was unveiled in the state Senate in late January.
Oklahoma lawmakers overturned a governor’s veto to pass a similar bill in mid-May.
Indiana and Maine have also passed legislation, with Iowa joining the fold just under a month ago.
The post Kentucky to Sue Kalshi & Polymarket for Providing ’Illegal Sportsbooks’ appeared first on CasinoBeats.
Kentucky has become the latest state to sue prediction market players like Kalshi and Polymarket, saying they are “operating illegal sportsbooks and breaking our laws.” In an official release, Kentucky Attorney General Russell Coleman accused the platforms of using false and misleading advertisements suggesting they are authorized to offer sports wagering services in the state.
The post Kentucky to Sue Kalshi & Polymarket for Providing ’Illegal Sportsbooks’ appeared first on CasinoBeats.