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Kalshi-led group sues Kentucky to stop 14.25% transaction tax on prediction markets

June 14 — A coalition of prediction-market operators including Kalshi, Crypto.com and Polymarket has sued to block Kentucky from enforcing a 14.25% transaction tax on prediction markets, according to Abcnews. The group argues the levy, passed by the Kentucky legislature in April, is discriminatory and unconstitutional, and is preempted by federal law. Kentucky Attorney General Russell Coleman said his office will mount a full defense, adding he is confident the state can uphold the rules and protect Kentuckians from out-of-state companies seeking to overturn Kentucky's sports-betting laws.
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