Kentucky Attorney General Russel Coleman filed lawsuits on Wednesday against three operators accused of illegal gambling, including prediction-market platforms Kalshi and Polymarket. The source does not identify the third operator or provide details of the claims.
The lawsuits raise legal exposure for Kalshi, Polymarket and another unnamed operator in Kentucky.
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New York Attorney General Letitia James filed a lawsuit alleging that Polymarket operated an unlicensed gambling business in the state from December 2025, accepting sports bets and advertising to residents. The suit also alleges that the platform accepted bets from people under 21. It seeks an order stopping the alleged activity, financial restitution for users, forfeiture of gains and a fine equal to three times those gains.
Missouri Attorney General Catherine Hanaway ordered Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood to comply with state sports wagering laws or stop offering sports event contracts in Missouri. The companies have 30 days to confirm compliance; the state says the contracts require Missouri Gaming Commission licences, and Robinhood disputes the state’s position.
Missouri Attorney General Catherine Hanaway plans to pursue cease-and-desist measures targeting prediction market operators. Hanaway wants the companies to comply with Missouri gaming legislation and pay gambling taxes, and said she would sue if they do not.
Heartland News was told by Missouri's attorney general, Catherine Hanaway, that her office is getting ready to issue a cease-and-desist action aimed at prediction market companies doing business in the state. In her view, sports event contracts count as gambling under Missouri law, and she said the way prediction markets and traditional sportsbooks arrange their fees makes no difference to that conclusion.
Reportedly, Michigan Attorney General Dana Nessel has obtained a preliminary injunction against Kalshi. The order prevents Kalshi from providing sports betting contracts to people in Michigan.
New York Governor Kathy Hochul and Attorney General Letitia James announced a lawsuit against Kalshi last Friday. The state accuses the prediction market platform of running an illegal gambling business and offering wagers on sports, elections and cultural events without a licence.