Calling Kalshi’s request to move its case from state court to federal court “inappropriate,” Kentucky Attorney General Russell Coleman late Monday wrote that “a preemption defense cannot support removal. ”
The brief is the latest in the state’s lawsuit, which seeks to prohibit Kalshi from operating within Kentucky’s borders. Coleman initially filed the case in Franklin Circuit Court, and Kalshi in June filed a motion to move the case to the U.S. District Court for the Eastern District of Kentucky.
The machinations are not unusual — several other states have filed cases against the prediction market in state court, presumably believing the landscape would be more favorable, while Kalshi has filed every one of its cases in federal court and requested state court cases be moved.
