Prediction market firms sue Kentucky over new tax. Here's what that means
Prediction market firms sue Kentucky over new tax. Here's what that means
Olivia Evans, Louisville Courier JournalSat, June 13, 2026 at 9:45 PM UTC
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Kentucky joins the growing number of states facing legal action related to prediction markets.
On June 12, the Coalition for Prediction Markets, which is made of companies like Kalshi, Polymarket, Crypto.com, Robinhood and others, filed a lawsuit against the state of Kentucky challenging the states newly enacted 14.25% tax on prediction markets.
Prediction markets, which have gained popularity in recent years, are online markets that allow users bet on and predict the outcome of certain events, from sports to pop culture or politics. Recently, these markets have been making the rounds in Kentucky, as they were used in the state's primary election cycle, The Courier Journal previously reported.
The recent complaint, filed in federal court, targets the Kentucky law, which went into effect in April after the General Assembly passed House Bill 757, a broad sweeping revenue and tax bill that Gov. Andy Beshear vetoed but was ultimately undermined by the state legislature.
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The coalition argues the tax is discriminatory, unconstitutional and preempted by federal law.
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"The people who get hurt by this tax are Kentuckians," a Kalshi spokesperson said in a email statement to The Courier Journal. "Taxing federally regulated markets doesn't make anyone safer, it just pushes people toward illegal platforms with no oversight and no protections. Kalshi is an American company, regulated here at home, and we're joining the fight for Kentuckians' access to safe, legal markets."
Contact Business Reporter Olivia Evans at oevans@usatodayco.com or on X at @oliviamevans_.
This article originally appeared on Louisville Courier Journal: Prediction market firms sue Kentucky over new tax
Source: “AOL Money”
