A coalition including Kalshi, Crypto.com, and Polymarket has filed a lawsuit against Kentucky's new excise tax on prediction markets. The tax, enacted in April, imposes a 14.25% levy on transaction fees. The lawsuit claims that's discriminatory and unconstitutional. Prediction markets allow trading based on real-world events like elections. The coalition argues the tax is higher than Kentucky's 9.75% tax on horse track wagers. Kentucky Attorney General Russell Coleman has vowed to defend the tax. Kalshi warns the tax could push users to illegal platforms. Prediction markets are seeking legitimacy but face scrutiny over incidents of insider trading.

A prediction market reported former U.S. Rep. George Santos to federal prosecutors after he boasted he’d be going to President Donald Trump’s State of the Union address, then bet against his own attendance. That's according to a person familiar with the investigation who spoke to The Associated Press on condition of anonymity. The prediction marketplace Kalshi detected trades made by Santos ahead of Trump's Feb. 24 speech. Santos had said he would attend the speech, but did not show up. Santos was sentenced to prison for fraud and identity theft in 2024, but only served a sliver of his sentence before being granted clemency by Trump. Santos did not respond to a request for comment about the Kalshi trades.

A prediction market reported former Rep. George Santos to prosecutors over suspicious Kalshi trade, AP source says.

Some sports wagering platforms, as well as popular prediction markets Kalshi and Polymarket, are touting their availability to users starting at 18 despite most U.S. states restricting gambling to 21 and older. The companies often use memes to advertise their platforms, then keep users hooked with what they market as low-stakes, casual opportunities to make an easy buck. That creates an environment that some say feels more like a game and less like a risky financial transaction. Young adulthood is a crucial period for companies to cultivate long-term users, but experts note that it’s also a critical moment for cognitive development. Kalshi says memes are “just a part of corporate branding nowadays” and their usage isn’t necessarily related to age.

Some sports wagering platforms, as well as popular prediction markets Kalshi and Polymarket, are touting their availability to users starting at 18 despite most U.S. states restricting gambling to 21 and older. The companies often use memes to advertise their platforms, then keep users hooked with what they market as low-stakes, casual opportunities to make an easy buck. That creates an environment that some say feels more like a game and less like a risky financial transaction. Young adulthood is a crucial period for companies to cultivate long-term users, but experts note that it’s also a critical moment for cognitive development. Kalshi says memes are “just a part of corporate branding nowadays” and their usage isn’t necessarily related to age.