Kentucky Sues Kalshi, Polymarket Over Sports Event Contracts

Kentucky has sued Polymarket, Kalshi and Kalshi partners Coinbase, Robinhood and Webull over the offering of sports event contracts in the state, according to Cointelegraph.

The case matters because it places another U.S. state directly into the legal debate over prediction markets and how sports-related event contracts should be treated. For crypto and fintech readers, the lawsuit is notable because it names both prediction market platforms and major consumer trading partners.

Polymarket and Kalshi operate in the prediction market sector, where users can take positions on the outcomes of real-world events. The Kentucky lawsuit focuses specifically on sports event contracts offered in the state.

Coinbase, Robinhood and Webull were named as Kalshi partners in the action, expanding the dispute beyond the prediction market operator itself. The source material does not include further details on the claims, requested remedies or responses from the companies.

The lawsuit adds to the broader legal battle around prediction markets in the United States, particularly as sports-linked contracts draw closer scrutiny from state authorities.