{"id":2194,"date":"2026-06-17T16:39:20","date_gmt":"2026-06-17T16:39:20","guid":{"rendered":"https:\/\/homebuyerrelocation.com\/?p=2194"},"modified":"2026-06-17T16:39:20","modified_gmt":"2026-06-17T16:39:20","slug":"in-the-home-of-the-derby-kentucky-breaks-with-trump-administration-to-rein-in-prediction-markets","status":"publish","type":"post","link":"https:\/\/homebuyerrelocation.com\/?p=2194","title":{"rendered":"In the home of the Derby, Kentucky breaks with Trump administration to rein in prediction markets"},"content":{"rendered":"
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Kentucky Attorney General Russell Coleman filed three lawsuits Wednesday against companies operating sweepstakes casinos and prediction markets, accusing them of offering gambling products to Kentuckians while skirting state licensing, taxes and consumer protections.<\/p>\n

Read more Gilgo Beach serial killer Rex Heuermann sentenced to life in prison without parole<\/a><\/p>\n

The move thrusts the home of the Kentucky Derby \u2014 and a state whose gambling laws have long been shaped by the racing industry \u2014 into the national fight over who regulates prediction markets, putting the Trump administration at odds with a Republican-leaning state.<\/p>\n

It also answers a lawsuit filed last week by a coalition of prediction market companies challenging Kentucky\u2019s new 14.25% tax on their transaction fees.<\/p>\n

Mr. Coleman\u2019s office is targeting and , along with and its sweepstakes casino platforms \u2014 Chumba Casino, Global Poker and LuckyLand Slots \u2014 in three circuit-court filings.<\/p>\n

Prediction markets let customers buy and sell event contracts, a type of derivative tied to real-world outcomes such as elections or economic indicators.<\/p>\n

The state argues the platforms are simply unlicensed gambling operations. In a three-month snapshot reviewed by the attorney general, roughly 70% of Kalshi\u2019s trading volume involved sports wagering, which Kentucky says makes it an unlicensed sportsbook in a tightly regulated market.<\/p>\n

Mr. Coleman told The Washington Times the prediction market companies have dressed up gambling in financial language, but the underlying product is unchanged.<\/p>\n

\u201cYou can call bourbon an adult beverage distilled from corn, but it\u2019s still bourbon,\u201d the Republican said. \u201cYou can change the nomenclature, but at the end of the day, if you look at the nature of what these are \u2014 this is gambling.\u201d<\/p>\n

Earlier this year, Kentucky\u2019s General Assembly passed the first-in-the-nation 14.25% excise tax on prediction market fees. Kalshi, Crypto.com and Polymarket US responded by forming the Coalition for Fair Markets and suing to block it, arguing that states cannot impose punitive taxes on federally regulated derivative exchanges.<\/p>\n

\u201cThey sued us,\u201d Mr. Coleman said. \u201cThis is simply a response.\u201d<\/p>\n

Kentucky is not acting alone.<\/p>\n

Last month, 41 state attorneys general \u2014 from both parties \u2014 urged Commodity Futures Trading Commission Chairman Michael S. Selig, a Trump appointee, to affirm that states retain authority over gambling within their borders.<\/p>\n

Kentucky has also joined amicus briefs defending Ohio and Tennessee\u2019s gaming laws against challenges from Kalshi.<\/p>\n

Read more \u2018AI is here\u2019: Lawmakers pressed to prepare students for future that has already arrived<\/a><\/p>\n

Courts nationwide are now weighing how much authority states have over products that many regulators still consider resembling online betting.<\/p>\n

The litigation puts Mr. Coleman at odds with his own party\u2019s leadership, but in line with other Republican attorneys general. President Trump has backed the prediction market position, and Donald Trump Jr. \u2014 an investor and strategic adviser to Polymarket \u2014 has also advised Kalshi. Mr. Coleman called the dispute an outlier in an otherwise strong relationship.<\/p>\n

\u201cWe\u2019re going to continue to collaborate with the Trump administration on rebuilding our economy, on border security \u2014 we have a great partner,\u201d he said. \u201cThis is just an outlier where we take a different position in terms of federal preemption versus the state sovereignty here.\u201d<\/p>\n

The sweepstakes casino suit focuses on VGW\u2019s virtual coin model, which the attorney general argues functions like casino chips. Because VGW is not licensed under Kentucky law, Mr. Coleman says it\u2019s running illegal gambling operations.<\/p>\n

He also warned that the platforms are designed to hook young users, citing data showing more than half of 17-year-olds are gambling online without safeguards.<\/p>\n

\u201cWe have young people with a prefrontal cortex still developing in droves on these platforms without the kind of mitigation that we have in regulated gaming,\u201d he said.<\/p>\n

All three suits are brought under Kentucky\u2019s Consumer Protection Act, the state\u2019s gambling statutes and its 19th-century Loss Recovery Act, which allows triple damages \u2014 meaning consumers could recover three times their losses.<\/p>\n

Mr. Coleman said his goal is not to drive the companies out but to force them to operate legally.<\/p>\n

\u201cWe want them to be regulated,\u201d he said. \u201cWe want the ability to protect our people.\u201d<\/p>\n

Read more Stars lining up to perform at opening of Obama Presidential Center<\/a><\/p>\n<\/div>\n<\/div>\n

<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Kentucky Attorney General Russell Coleman filed three lawsuits Wednesday against companies operating sweepstakes casinos and prediction markets, accusing them of offering gambling products to Kentuckians while skirting state licensing, taxes and consumer protections.<\/p>\n","protected":false},"author":1,"featured_media":2193,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,7],"tags":[],"class_list":["post-2194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-politics"],"yoast_head":"\nIn the home of the Derby, Kentucky breaks with Trump administration to rein in prediction markets - Home Buyer Relocation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/homebuyerrelocation.com\/?p=2194\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In the home of the Derby, Kentucky breaks with Trump administration to rein in prediction markets - 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