CFTC sues Kentucky over action against Kalshi and Polymarket
The CFTC has sued Kentucky, arguing that state actions against Kalshi and Polymarket interfere with the commission’s authority over event contracts. Kentucky had filed civil actions accusing the platforms of operating illegal sportsbooks and introduced a transaction fee targeting them; state authorities argue sports-related contracts should face state oversight.
The case tests whether federal or state authorities oversee prediction-market sports contracts in Kentucky.