Overview
Kentucky’s Attorney General filed two prediction-market complaints in Franklin Circuit Court on June 17, 2026. The first, Commonwealth ex rel. Coleman v. KalshiEX LLC (No. 26-CI-00689, Judge Phillip J. Shepherd), names five Kalshi entities together with the brokers that distribute its contracts — Robinhood Markets, Robinhood Derivatives, Webull and Coinbase Financial Markets. The second, against Polymarket US’s QCX LLC and its affiliates (No. 26-CI-00696), was removed to federal court the next day as No. 3:26-cv-00047. The legislature also added a 14.25% excise tax on prediction-market activity, and the CFTC then sued the state — its ninth state suit and its first against a Republican-controlled state.
Kalshi removed its case on June 19 to the Eastern District of Kentucky (No. 3:26-cv-00048). Kentucky moved to send it back, arguing that a preemption defense cannot support removal; the motion has been with Judge Robert E. Wier since September 1, and the defendants’ answers wait on his ruling. The Sixth Circuit’s September 25, 2026 decision against Kalshi binds that court on the merits. (Captions, docket numbers and judges read from the file-stamped complaints and the federal dockets.)