Kentucky AG Sues 3 Gambling Platforms Over 14.25% Tax Fight and Illegal Betting Claims
Updated
Updated · Louisville Public Media · Jun 17
Kentucky AG Sues 3 Gambling Platforms Over 14.25% Tax Fight and Illegal Betting Claims
3 articles · Updated · Louisville Public Media · Jun 17
Summary
Three Kentucky lawsuits filed by Attorney General Russell Coleman target Kalshi, Polymarket and VGW, alleging they violate state gambling and consumer-protection laws by offering unlicensed sports betting and casino-style games.
Coleman says Kalshi and Polymarket's event contracts function as sportsbooks in disguise, while VGW's virtual-coin systems on Chumba Casino, Global Poker and LuckyLand Slots operate like casino chips.
The suits also argue the platforms offer little support for gambling addiction, a sensitive issue in a state where 2.5% of sports-betting tax revenue is earmarked for treatment and prevention.
Polymarket said Kentucky's action conflicts with federal rules for prediction markets and that it will fight the claims through the legal process; Kalshi and VGW did not immediately comment.
The state action follows a lawsuit filed last week by prediction-market companies challenging Kentucky's new 14.25% tax on transaction fees, setting up a broader state-versus-federal clash backed by the Trump administration.