A coalition including Kalshi, Crypto.com, and Polymarket filed a lawsuit Friday challenging Kentucky's first-in-the-nation excise tax on prediction markets.

How this affects you

If the lawsuit is successful, it could set a precedent for how U.S. states regulate and tax prediction markets, potentially influencing the growth and legitimacy of these platforms nationwide. Conversely, if Kentucky prevails, it might encourage other states to implement similar taxes, creating a more challenging regulatory environment for prediction market operators.