Kentucky Set to Tax Event Prediction Markets in First for States

Kentucky would become the first state in the country to tax prediction markets such as Kalshi and Polymarket under a broad tax bill headed to the desk of Gov. Andy Beshear (D).

The state also plans to implement a new excise tax on fantasy sports platforms. The proposed new levies were tucked into HB 757, an omnibus tax policy measure that cleared the Republican-controlled legislature late Wednesday, sending it to Beshear to sign or veto. Even if he rejects it, Republican lawmakers have generally been able to override previous vetoes by the second-term Democratic governor.

Prediction markets, which resemble ...