Prediction market operators sue Kentucky over 14.25% transaction-fee tax
Kalshi, Crypto.com and Polymarket filed a lawsuit against Kentucky on 12 June challenging the state’s 14.25% tax on prediction market operators’ transaction fees. The companies argue the law is discriminatory and conflicts with federal commodities law; Kentucky Attorney General Russell Coleman said his office would defend the statutes.
The lawsuit challenges Kentucky’s tax treatment of prediction markets and could affect how the state applies it to operators.