Kentucky Attorney General sues VGW, Kalshi, and Polymarket over illegal gambling

Attorney General Russell Coleman filed three separate lawsuits in Kentucky targeting sweepstakes casino operator VGW (the parent of Chumba Casino and Global Poker) and prediction‑market platforms Kalshi and Polymarket. The state alleges that the companies operate unlicensed sportsbooks, effectively offering illegal gambling to Kentucky residents, evading state licensing, consumer‑protection rules, and taxes. The complaints also name cryptocurrency exchange Coinbase and affiliates such as Robinhood and Webull for facilitating transactions linked to the platforms.

Kentucky has not yet enacted a specific statute prohibiting sweepstakes‑style casinos, but the AG argues the services closely resemble traditional sports betting and therefore violate state law. VGW responded, saying it has lawfully operated in the United States for more than a decade and will vigorously defend the lawsuit, noting it has exited states with explicit bans like California and New Jersey.