Kentucky Attorney General Russell Coleman has filed lawsuits against online sweepstakes casino VGW and prediction markets Kalshi and Polymarket, accusing them of offering unlicensed gambling in the state.
A statement from the Attorney General’s office, said Coleman had launched three separate lawsuits, one targeting Kalshi and its affiliates, including cryptocurrency exchange Coinbase, another targeting Polymarket, and a third aimed at VGW.
The lawsuits allege that Kalshi and Polymarket are operating illegal sportsbooks in Kentucky by offering sports event contracts without a gaming license, thereby avoiding the customer protection rules and taxation that apply to licensed operators.
Among the suits, the state argued that sports betting takes up most of Kalshi’s trading volume.
