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Kentucky attorney general sues prediction market, online casino companies

WAVE

Attorney General Russell Coleman has filed three lawsuits accusing several online platforms of operating illegal, unlicensed gambling businesses in Kentucky.

The lawsuits, filed in Franklin Circuit Court, target prediction market companies Kalshi and Polymarket, cryptocurrency platform Coinbase, and online casino operator VGW, which owns Chumba Casino, Global Poker, and LuckyLand Slots.

Coleman alleges Kalshi and Polymarket are offering illegal sports betting by allowing users to wager on game outcomes without licenses from the Kentucky Horse Racing and Gaming Commission. The lawsuits also claim the companies fail to provide responsible gambling resources required under state law.

A separate lawsuit accuses VGW of operating illegal sweepstakes-style online casinos that allow users to purchase virtual coins, play casino games, and cash out winnings.

The attorney general's office says all three lawsuits allege violations of Kentucky's Consumer Protection Act, the Loss Recovery Act, and the state's gambling laws. A new state law regulating sports wagering takes effect July 15.

Karyn Czar has been a journalist with WUKY since 2013 and is currently the Assistant News Director. She received her bachelor's degree from the University of Kentucky and brings more than 30 years of broadcast experience to NPR. Karyn's work has been recognized with numerous Associated Press, Kentucky Broadcaster Association, Public Media Journalist, and Edward R. Murrow awards throughout her career.