Kentucky's Attorney General has filed lawsuits against prediction market firms Kalshi and Polymarket, alleging they operate illegal sports betting platforms without proper licensing. The state claims these companies, along with partners like Coinbase and Robinhood, fail to provide necessary resources for gambling addiction, violating local laws. This legal action places Kentucky, a predominantly Republican state, at odds with former President Trump's stance that prediction market regulation should be federally managed by the Commodity Futures Trading Commission (CFTC).