Are prediction markets legal in Kentucky?

Kentucky's Attorney General sued both Kalshi and Polymarket US in June 2026, and the cases are being fought over in federal court. Both platforms remain available while those cases continue. We found no Kentucky action against Novig or PredictIt.

Prediction markets are available in Kentucky, but the state is suing the two biggest. As of October 17, 2026, Kentucky’s Attorney General has lawsuits pending against Kalshi and Polymarket US, both filed in June 2026 and both moved into federal court. Both platforms remain available while the cases continue.

Kentucky’s position

Kentucky legalised sports betting in 2023: retail sportsbooks opened on September 7, 2023 and mobile apps on September 28, under the Kentucky Horse Racing and Gaming Corporation. In June 2026 Attorney General Russell Coleman sued Kalshi and Polymarket US in Franklin Circuit Court. Both companies moved the cases to federal court in Frankfort (filed there June 18 and 19, 2026). A federal magistrate reportedly recommended in October 2026 that the Polymarket case be sent back to state court. The CFTC sued Kentucky in June 2026, arguing federal law protects the platforms. Kentucky did not sign the October 2026 multistate Supreme Court brief against Kalshi.

Other platforms

Robinhood’s Q2 2026 10-Q discloses that Kentucky also sued Robinhood Markets and Robinhood Derivatives on June 17, 2026. We found no Kentucky action against Novig or PredictIt. Earlier private lawsuits sought to recover Kentucky residents’ losses on Kalshi. DraftKings and FanDuel don’t offer sports contracts in Kentucky, where they run licensed sportsbooks. See is Kalshi legal?, is Polymarket legal? and our legality tracker.

Not legal or betting advice. 18+ (21+ where required). Prediction markets involve risk of loss — only trade what you can afford to lose. Gambling problem? Call or text 1-800-MY-RESET (National Problem Gambling Helpline, 24/7).