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CFTC sues Kentucky after state’s prediction market suits
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The Commodity Futures Trading Commission has sued Kentucky, now the ninth state the regulator is battling in its fight over prediction markets.
Key facts
- Sports betting has been under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation since 2023
- In May, US President Donald Trump gave the CFTC moral support, saying it was “critically important” that the regulator was the authority on prediction markets
- Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said in a statement
- The lawsuit comes weeks after CFTC similarly sued New Mexico to block the state’s efforts to apply state gaming laws to Kalshi
Summary
The US Commodity Futures Trading Commission filed a lawsuit against Kentucky on Tuesday after the state sued prediction market operators last week, accusing them of operating unlicensed and illegal gambling platforms. The lawsuit, filed in federal court, seeks to block Kentucky’s legal action against five prediction markets filed on Wednesday last week, calling for declaratory and injunctive relief. “Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said in a statement. The CFTC has been ramping up its effort to maintain authority over prediction markets since Selig was appointed as chair in December.