DEFENDING KENTUCKIANs’ CHOICE FOR SAFE AND SECURE PREDICTION MARKeTS
Our Position
The Coalition for Prediction Markets advocates for a strong federal standard that keeps prediction markets secure, transparent, and domestic. We believe consenting Kentuckians have the right to access these forecasting tools and make their own decisions about where to invest their money.
Why HB 757 Fails Kentucky
Already Federally Regulated: Prediction markets are legitimate financial instruments strictly overseen by the Commodity Futures Trading Commission (CFTC) and don’t require further state-level oversight.
Taxing Innovation Out of Existence: Massive state-level taxes on prediction markets in HB 757 don't raise revenue—they force legitimate, regulated platforms to shut down or leave the state entirely.
Fueling Dangerous Shadow Markets: Taxing legal platforms out of business pushes Kentuckians toward illegal websites that scam users, evade U.S. taxes, and lack basic consumer protections.
Regulatory Efficiency: A disjointed patchwork of state laws creates an inefficient framework. A single federal standard is the only way to universally mandate surveillance and prevent insider trading.
Prediction markets are distinct from traditional gambling
Prediction markets are neutral, fee-based exchanges where the platform never trades against the public. They are structurally distinct from traditional gaming and should not be governed by rules written for a different industry.
The bottom line
We oppose state-level bans and taxes that threaten the right to trade. Kentucky should foster innovation and protect its citizens by supporting a federal framework that enables these tools to thrive safely within the U.S. financial system.