A coalition of prediction market operators, including Kalshi, Crypto.com and Polymarket, has sued Kentucky over a newly enacted tax on prediction market transactions, arguing that the levy is discriminatory and conflicts with federal law.
The lawsuit, filed in Kentucky state court by the Coalition for Fair Markets, challenges a 14.25% excise tax on prediction market operators' transactions. The operators claim that the tax is unfair and violates their rights. The legal challenge is based on the argument that the tax is not only discriminatory but also goes against federal regulations.
