CFTC sues Kentucky after state legal action against prediction markets

The US Commodity Futures Trading Commission filed a federal lawsuit against Kentucky after the state sued prediction market operators last week. The CFTC seeks to block Kentucky’s action against five prediction markets and is asking for declaratory and injunctive relief, naming Governor Andrew Beshear, Attorney General Russell Coleman and the Kentucky Horse Racing and Gaming Corporation, among others.

“Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said. He added that the commission is committed to maintaining its exclusive jurisdiction over prediction markets; the CFTC has stepped up efforts since Selig was appointed chair in December and this is the ninth state it has sued over such actions.

Kentucky had sued Polymarket and Kalshi, along with Kalshi partners Coinbase, Robinhood and Webull, accusing them of operating without a Kentucky gaming license and treating their sports event contracts as sports wagering under state law.

United States, Kentucky

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