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.
Kentucky
Northern Kentucky city places zoning, legal restrictions on vape shops
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SOUTHGATE, Ky. (WXIX) – A Northern Kentucky town passed a zoning ordinance that restricts where vape shops can be.
On June 3, Southgate City Council unanimously passed the amendment following a series of public presentations.
“Unanimous passage of Southgate’s vape zoning ordinance reflects our commitment to protecting our residents, especially our kids, from the harmful effects of tobacco and e-cigarette use,” said Southgate Mayor Jim Hamberg, who spearheaded the ordinance in collaboration with the city’s administration.
The newly approved ordinance includes the following provisions for vape shops:
- Must be at least 1,200 feet away from schools, daycares, playgrounds, and youth-focused organized.
- Must be at least 600 feet from other vape shops.
- Unaccompanied minors are prohibited from entering the store.
- Alcohol sales are prohibited.
- Stores cannot be licensed as food service establishments.
- Stores are prohibited from having drive-through or drive-up window transactions.
- Store hours are limited to 6 a.m. to 10 p.m.
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Southgate leaders say the purpose of the ordinance is to promote wellness for families and to invest in the community’s future.
“I’m proud of the collaboration between our administration and Council to uphold Southgate’s standards for a safe, healthy, and family-focused community,” Mayor Hamberg said.
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Kentucky
Kentucky Football pushes back this week’s official visits

Kentucky
Kentuckians could soon see higher prices at gas pumps due to fight over tax break
ERLANGER, Ky. (WKRC) – Drivers across Kentucky could soon see higher prices at the pump as a political fight in Frankfort threatens to shrink the reach of a temporary gas tax break.
Gov. Andy Beshear last month used an emergency executive order to reduce Kentucky’s state gas tax statewide by 10 cents. Under laws put in place by the General Assembly after COVID, those emergency orders expire after 30 days and can only be extended in counties or cities that ask to be included.
As of Thursday, that number was 37, with Beshear saying some cities dropped out after pressure from Republican lawmakers.
Drivers across Kentucky could soon see higher prices at the pump as a political fight in Frankfort threatens to shrink the reach of a temporary gas tax break. (WKRC)
“Somehow, Republican legislators have made this political. They even called it political pandering. Decreasing gas prices for our families is somehow political pandering,” Beshear said.
Republicans have argued the tax reduction would cut into the state’s highway funding. Retiring state Sen. Jimmy Higdon of Lebanon raised concerns in a transportation budget committee meeting about the impact on the road fund, which was estimated at $26 million less.
“I won’t be here in January, but if I were, I would want to know what communities did it and how much money they took from the road fund. And I would make sure that any shortage we had came out of their allotment, their roads, and their projects in their district,” Higdon said.
Beshear acknowledged the estimated hit but said the state can absorb it.
“Certainly on the state side, yes, it may be a $26 million hit for one month. We have $3 billion in our savings account. I’m going to add another 300 million dollars, if not more, to it. We can take it. It won’t hurt us. But it is breaking our families,” Beshear said.
When asked Thursday whether any local leaders told him they wanted to opt in but backed out, Beshear declined to identify anyone.
“Yeah, I’m not going to put them on the spot. They’re in a tough spot,” said Beshear.
In Northern Kentucky, the cities opting into the extension included Alexandria, Covington, and Erlanger, along with Glencoe in Gallatin County and Falmouth in Pendleton County.
Covington Mayor Ron Washington said he asked to be included because of what he is hearing from residents and said he has not been pressured by political leaders.
“This is where my pressure is coming from. My everyday community members are talking about not only the cost of fuel but the cost in general to make ends meet. That’s where the pressure comes from. I’ve not received a call from anybody on either side of the aisle,” Washington said.
The offices of the speaker of the House and the Senate president declined comment. Local Republican state Sens. Chris McDaniel and Steve Rawlings also declined comment.
Beshear also wrote President Trump supporting any reductions in the gas tax and telling him Republicans in Kentucky have called the governor’s actions pandering, while Trump has mentioned lowering the federal gas tax. Kentucky joined Indiana in taking action on gas taxes, and the White House is considering similar federal action.
Kentucky’s current emergency order will continue through June 30. In Indiana, Gov. Mike Braun removed all state gas taxes for a reduction of about 63 cents a gallon. That tax holiday will remain until July 7.
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