Kentucky became the latest state to sue prediction market platforms this week, accusing industry leaders Kalshi and Polymarket of operating illegal sports betting platforms.
Kentucky is one of numerous states across the country that have taken legal action against prediction market platforms in recent months, over alleged violations of state-level gambling laws.
Those threats appear not to have deterred additional states from making their voices heard on the subject.
In its lawsuit, Kentucky regulators argued that by avoiding registration as gambling platforms, Kalshi and Polymarket have neglected certain critical obligations, including providing resources to users to combat gambling addiction.
The state also sued VGW, an online casino platform allegedly offering illegal sweepstakes.
The issue is likely to ultimately be decided by the U.S. Supreme Court.
