Coalition Sues to Block Kentucky Prediction Markets Tax

A coalition of companies including Kalshi and Crypto have filed a lawsuit to block Kentucky's new 14.25% tax on prediction markets.

The lawsuit, which was filed in June 2026, argues that the tax is unconstitutional and will harm the growth of the prediction market industry in the state.

Prediction markets are platforms where users bet on the outcome of future events, such as elections or sports games. They have gained popularity in recent years due to their potential for high returns and low barriers to entry.