DiCello Levitt Serves as Outside Counsel to the Commonwealth in Consumer Protection Lawsuits Targeting Prediction Market Platforms Accused of Violating Kentucky Gambling Law
FRANKFORT, Ky. — DiCello Levitt is serving as outside counsel to the Commonwealth of Kentucky in two lawsuits filed by Attorney General Russell Coleman against Kalshi, Polymarket, and related entities, alleging the prediction market platforms operated unlicensed and illegal sports betting in Kentucky.
The lawsuits, filed in Franklin Circuit Court, allege that Kalshi, Polymarket, and related entities allowed Kentucky consumers to place wagers on game outcomes, point spreads, point totals, parlays, proposition bets, and player statistics without a Kentucky gaming license and without complying with the Commonwealth’s sports wagering laws.
“Kalshi and Polymarket are operating illegal sportsbooks in Kentucky and breaking our laws,” said Attorney General Coleman in a press release. “These multi-billion dollar corporations and their legal fictions don’t pass the sniff test. As one of our state legislative leaders said it best, ‘If it looks like a duck and quacks like a duck…’”
Kentucky law gives the Kentucky Horse Racing and Gaming Commission authority to regulate and license sports wagering. The complaints allege that Kalshi and Polymarket attempted to bypass that framework by labeling sports bets as “event contracts,” while offering products that mirror wagers available through licensed sportsbooks.
The Kalshi lawsuit also names platform partners Robinhood, Webull, and Coinbase and alleges that those companies helped make Kalshi’s sports wagering products available to Kentucky residents. The Polymarket lawsuit alleges that the platform’s website, app, and social media advertising created the false and misleading impression that Polymarket was authorized to offer sports wagering under Kentucky law.
Both lawsuits allege violations of the Kentucky Consumer Protection Act, Kentucky’s Loss Recovery Act, and the Commonwealth’s gambling laws. The complaints also allege that the defendants failed to provide responsible gaming safeguards required under Kentucky law, including resources to help consumers identify or seek help for problem gambling.
The DiCello Levitt team representing the Commonwealth includes Founding Partner Adam Levitt, Partner Dan Ferri, and Associate Joseph “J.J.” Nelson.
The cases are Commonwealth of Kentucky ex rel. Attorney General Russell Coleman v. KalshiEX LLC et al. and Commonwealth of Kentucky ex rel. Attorney General Russell Coleman v. QCX LLC et al., both filed in Kentucky’s Franklin Circuit Court.
About DiCello Levitt
DiCello Levitt LLP is one of the leading plaintiffs’ law firms in the United States. Nationally recognized for our work in high-stakes class actions, mass torts, and complex litigation, we have recovered more than $25 billion for clients, including individuals, businesses, and communities. We take on some of the world’s most powerful interests, pursuing justice that reshapes industries and improves lives.
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