Kentucky attorney general launches lawsuits against 3 gambling companies

FRANKFORT, Ky. – Attorney General Russell Coleman announced Wednesday the launch of three lawsuits against prediction market platforms, a sweepstakes platform and a cryptocurrency platform.

According to the attorney general’s office, Coleman is accusing the companies of operating “unlicensed and illegal sports betting and gambling platforms in Kentucky.”

The lawsuits were filed against Kalshi and its affiliates, including Coinbase, Polymarket and its affiliates and VGW, with brands including Chumba Casino, Global Poker and LuckyLand Slots.

The attorney general’s office states, “Kalshi and Polymarket, prediction market platforms, allow users to place wagers on game winners, point spreads and player statistics, bypassing the consumer protections and tax requirements mandated by the Commonwealth’s gambling laws.”

According to the lawsuits, Kalshi and Polymarket are doing business without a Kentucky gaming license or following state regulations.

Polymarket’s advertisements also “give the false and misleading impression that it is authorized to offer sports wagering under Kentucky law,” Coleman’s office states. The platform offers many of the same traditional sports bets that a licensed sportsbook would, including money lines, spreads, point totals, parlays and prop bets. Calling them “sports event contracts” doesn’t make them legal, according to the attorney general’s office.

Coinbase, a cryptocurrency trading platform, has partnered with Kalshi to operate unlicensed sports gambling on its platform. According to Coleman’s office, the two companies split the fee whenever a bet is made on Coinbase.

According to Coleman’s office, the prediction market lawsuits also allege Polymarket and Kalshi and its affiliated entities, Coinbase, Robinhood and Webull, offer users “few or no resources to identify or seek help for a gambling problem, which is mandated under Kentucky law.”

Officials say the Kentucky Horse Racing and Gaming Commission has the authority to regulate and license sports wagering.

Under the provisions of The Wagering Consumer Protection Act (26 RS HB 904), which became law earlier this year and will take effect July 15, 2026, licensed sports wagering operations “are prohibited from contracting with Kalshi or Polymarket,” Coleman’s office says.

VGW and its affiliates operate unlawful sweepstakes casino websites that use two different types of virtual gambling chips. According to Coleman’s office, the sweepstakes casino games are designed to “look and feel like traditional casino games with slot machines and blackjack games.” According to a study cited in the complaint, they also exploit the same psychological triggers related to addiction.

“This company may use new technology and a new scheme to hide, but the reality is the same,” Coleman said. “Our Office has a duty to stop illegal gambling in Kentucky regardless of how it’s packaged.”