Woofun AI reports that Russell Coleman, the Attorney General of Kentucky, has initiated legal proceedings against prediction market platforms Kalshi and Polymarket. The suit alleges that these entities facilitated illegal sports betting services without securing the requisite local licenses.

Concurrently, major financial firms including Coinbase, Robinhood, and Webull were designated as parties involved in this regulatory action.

In response to the allegations, Polymarket declared its intent to vigorously defend against the charges. The platform argued that the lawsuit contravenes the regulatory framework established by the U.S. Commodity Futures Trading Commission (CFTC) specifically designed for prediction markets.