Kentucky
A coalition sues to block Kentucky’s new 14.25% prediction markets tax
FRANKFORT, Ky. (AP) — A coalition that includes Kalshi, Crypto.com and Polymarket filed a lawsuit Friday challenging Kentucky’s first-in-the-nation excise tax on prediction markets.
The Kentucky General Assembly in April enacted a 14.25% tax on prediction market operators’ transaction fees, a levy the lawsuit says is discriminatory, unconstitutional and preempted by federal law.
Prediction markets are platforms where customers can buy, sell or trade event contracts — a form of derivative that allow placing trades based on whether real-world events, such as election results or economic indicators, will or won’t happen.
The new tax is higher than for Kentucky’s “favored incumbent industry,” the lawsuit filed in state court by the Coalition for Fair Markets says, noting a 9.75% tax on wagers at horse tracks.
In a statement using gambling terminology, Kentucky Attorney General Russell Coleman vowed to fight the legal challenge.
“You can bet our Office will defend these statutes and the people of our Commonwealth from out-of-state companies that seek to cancel Kentucky’s sports betting laws,” he said. “In any courtroom, the attorneys with the AG’s Office are the odds-on favorite to win.”
The tax disincentivizes the operation of prediction markets in Kentucky, the lawsuit says.
“No State currently levies a State-specific excise tax of any kind on derivatives transactions that take place on a federally designated exchange, let alone the sort of specifically targeted and discriminatory tax that Kentucky has imposed here,” it says.
Taxing federally regulated markets “just pushes people toward illegal platforms with no oversight and no protections,” Kalshi said in a statement. “Kalshi is an American company, regulated here at home, and we’re joining the fight for Kentuckians’ access to safe, legal markets.”
Prediction markets have been pushing hard to gain legitimacy among the public and policymakers as a legitimate platform where users can bet on everything from sports to the weather to geopolitical events.
There have been several incidents where traders have used inside information to profit on prediction market platforms. It was recently disclosed that former former Congressman George Santos was under investigation for allegedly illegally betting he wouldn’t attend President Donald Trump’s State of the Union address after initially saying he would. In April, a U.S. Army soldier was charged with using classified information to make a $400,000 profit trading on Polymarket on the timing of the U.S. military operations in Venezuela earlier this year.
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HARRODSBURG, Ky. (WXIX) – After a boating collision at a popular Kentucky lake, a specialized rescue team from Ohio is helping search crews find a missing victim.
The collision happened between a large boat and a pontoon on Herrington Lake, located about 115 miles south of Cincinnati. The lake is over 2,300 acres long with many sharp, winding curves. It is also the deepest lake in Kentucky.
Multiple emergency crews were called to Pandora Marina to help rescue the victims sometime after 8 p.m.
Water Rescue 6 rescued one person who sustained traumatic injuries. They were flown to the University of Kentucky Hospital via medical helicopter, according to the Mercer County Fire District.
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Three others were also rescued and transported to a hospital in Danville, officials say.
“Unfortunately one victim is still missing. Dive teams and boats have been deployed from Boyle County to continue search,” the fire district wrote online the day of the collision.
The situation appears to be the same on July 5 as the last victim remains missing.
“A specialized rescue crew has been dispatched from Ohio and is enroute,” the district wrote in an update. “If you are on the lake please be respectful of the rescuers and search teams. This operation will remain active until the victim is recovered.”
FOX19 NOW has reached out to Mercer County officials for more information on the crash. We are waiting to hear back.
Herrington Lake officials released a statement about the crash.
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Kentucky
Recovery operations underway to find possible drowning victim on Kentucky Lake | NewsRadio 1230 AM/99.3 FM | Hopkinsville’s News Leader
Recovery efforts are set to begin anew after weather delay efforts Saturday night, as officials in Stewart County search for a possible drowning victim.
According to Stewart County Fire Rescue in Tennessee, first responders were called to Grays Landing on Kentucky Lake for reports that a person had gone missing in the water. Search and recovery efforts began at once, but due to severe storms rolling through, water conditions quickly became rough.
Recovery operations were suspended for the night after water conditions and severe storms partially sank a civilian boater near the boat ramp.
No additional details on the matter have been released.
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