The fight over which entity regulates prediction markets continued with the U.S. Commodity Futures Trading Commission (CFTC) filing a lawsuit against another state for its attempt to cement its jurisdiction over these companies. One of these companies, Kalshi, fought back as well, suing the state of Illinois, adding to the growing list of legal battles over this still-emerging sector.
Kentucky Attorney General Russell Coleman filed lawsuits on June 17 against Kalshi, Polymarket and sweepstakes-casino operator VGW, alleging the companies ran unlicensed gambling platforms in violation of state consumer-protection and gaming laws. Six days later, on June 23, the CFTC filed its own lawsuit against Kentucky to block the state’s attempt to shut down the companies. Kentucky is the ninth state to be sued by the CFTC as it continues to defend what the agency determines to be its exclusive jurisdiction to regulate prediction markets.
