Overview
The United States (through the DOJ) and the CFTC sued Kentucky (filed June 23, 2026) to block state enforcement — its ninth suit against a state and, notably, the first against a Republican-controlled state. The complaint names the Commonwealth, Governor Andrew Beshear, Attorney General Russell Coleman, the Revenue Commissioner, and the Kentucky Horse Racing and Gaming Corporation, and targets the state’s 14.25% excise tax.
It is also where the platforms’ challenge to that tax is being fought. The Coalition for Fair Markets — a trade group whose members are Kalshi, Crypto.com’s exchange and Polymarket US — had sued over the tax in Franklin Circuit Court (No. 26-CI-00667) on June 12, then moved to intervene here in July; Kentucky did not object, and Judge S. Chad Meredith granted the motion on August 10. By September 21 the cross-motions were briefed: the federal government’s and the Coalition’s summary-judgment motions, and Kentucky’s motions to dismiss both. The Sixth Circuit’s September 25 decision against Kalshi binds this court. (Caption, docket, intervention and hearing date confirmed on the E.D. Ky. docket, No. 3:26-cv-00049.)