Kentucky sues Kalshi and Polymarket over alleged unlicensed sports betting, testing Trump-backed CFTC stance

Kentucky is turning its attention to prediction markets, a move that could put the traditionally conservative state on a collision course with the political team around former President Donald Trump. As the state weighs how to deal with the fast-growing sector, tensions could emerge over how gambling-related prediction products are treated in political and economic contexts. The shift is prompting fresh questions about what it means for Kentucky’s political alignment and its relationship with the Trump camp, long influential in red states.