The U.S. Commodity Futures Trading Commission (CFTC) has filed a federal lawsuit against the state of Kentucky, seeking to halt Kentucky’s efforts to block several prediction market platforms. The action comes after Kentucky sued major players in the prediction market space last week, arguing they operate without the required state gaming approvals.

According to the CFTC, the event contracts offered by platforms including Polymarket and Kalshi fall under the agency’s jurisdiction as federally regulated prediction markets. The regulator’s complaint also challenges a Kentucky law that imposes an excise tax on prediction market transaction fees, arguing the measure is effectively designed to make such platforms unable to operate in the state.

Key takeaways

• The CFTC filed suit in federal court to block Kentucky’s legal action against five prediction market-related defendants.
• Kentucky’s complaint targets Polymarket and Kalshi, as well as partners including Coinbase, Robinhood, and Webull, alleging “sports wagering” without proper licensure.
• The CFTC argues its authority is exclusive because the platforms’ event contracts are regulated as swaps and are linked to CFTC-designated contract markets.
• Kentucky’s 14.25% excise tax on prediction market transaction fees is part of the dispute, with the CFTC claiming it would make operation economically unviable.
• This is the ninth state case the CFTC has pursued since it began escalating enforcement around prediction market jurisdiction.

CFTC moves to preserve federal control over prediction markets

In its filing, the CFTC asked the court for declaratory and injunctive relief aimed at stopping Kentucky’s state-level case. The lawsuit identifies Kentucky Governor Andrew Beshear, Attorney General Russell Coleman, and the Kentucky Horse Racing and Gaming Corporation, among others.

CFTC Chair Mike Selig said the agency is “firmly committed to maintaining its exclusive jurisdiction over prediction markets,” calling Kentucky “the latest state attempting to shut down federally-regulated event contracts.” In the same statement, Selig framed the lawsuit as part of the CFTC’s broader effort to protect its federal authority over how these markets are regulated.

The CFTC said its enforcement push has intensified since Selig became chair in December. Kentucky’s case marks the ninth state action the CFTC has initiated over state measures targeting prediction markets.

Kentucky’s theory: event contracts are “sports wagering” under state law

Kentucky’s earlier lawsuit, filed last week, named Polymarket and Kalshi, along with Kalshi partners Coinbase, Robinhood, and Webull. Kentucky argued these entities are “doing business without a Kentucky gaming license or following state regulations,” and that their sports event contracts “fall squarely within the definition of ‘sports wagering’ under Kentucky law.”

The state also pointed to consumer-protection requirements. Kentucky alleged the platforms provide users “few or no resources” to identify or seek help for a gambling problem, as required under Kentucky law.

Sports betting falls under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation, which has overseen the sector since 2023. Kentucky’s complaint effectively treats prediction markets offering sports-linked event contracts as a category of gambling that must comply with Kentucky’s licensing and regulatory framework.

How the CFTC reframes the same contracts as swaps and regulated derivatives

The CFTC’s lawsuit takes a different starting point: it argues that Polymarket and Kalshi operate within the CFTC’s regulatory universe. Specifically, the agency contends that the platforms are designated contract markets under its authority and that their event contracts are “swaps” under federal commodities law.

On the involvement of Coinbase, Robinhood, and Webull, the CFTC argues these firms are CFTC-registered futures commission merchants capable of offering event contracts in partnership with a designated contract market. This approach ties the platforms’ products to federal derivatives-style oversight rather than state gambling licensing requirements.

At the center of the broader legal clash is jurisdiction—whether states can enforce their gaming rules on prediction markets that, according to the CFTC, are already regulated at the federal level.

Excise tax dispute raises stakes for state enforcement

Kentucky’s efforts aren’t limited to licensure. The CFTC also challenged Kentucky’s recent law imposing a 14.25% excise tax on prediction market transaction fees. The regulator argued the tax is an attempt to make prediction markets economically unviable in Kentucky.

In the CFTC’s view, the tax structure functions as a practical barrier rather than a neutral fiscal policy—an argument that could become important if the court evaluates whether the state measure effectively undermines federally regulated market activity.

Just weeks earlier, the CFTC similarly sued New Mexico to block state actions aimed at applying state gaming laws to Kalshi, underscoring that the dispute is not confined to one state. The pattern suggests the agency intends to test—through litigation—whether state gaming enforcement can proceed when the CFTC believes federal commodities regulation already governs the same products.

Political backdrop and what to watch next

The Kentucky case lands amid a wider political conversation about prediction market jurisdiction. Earlier reporting in the same coverage noted that President Donald Trump gave the CFTC “moral support,” saying it was “critically important” that the regulator be the authority on prediction markets. The filing also references related public political ties, including that Trump Jr. has invested in and advises groups connected to Polymarket and Kalshi.

For market participants and users, the practical question now is procedural as well as substantive: whether federal court intervention will pause or narrow Kentucky’s enforcement timeline, and how the court evaluates the CFTC’s claim of exclusive federal jurisdiction. Readers should watch for developments on the scope of the injunction the CFTC is seeking, and for whether additional states facing similar disputes will move to accelerate or pause their own prediction market enforcement actions.

Most of the well-known altcoins have fared even worse than the market leader. ETH is down 6% for the day, trading around $1,650, while Ethena (ENA), Worldcoin (WLD), and Stellar (XLM) have slipped by 9-10%.

Solana (SOL) and Hyperliquid (HYPE), which recently staged an evident rebound, also headed south, whereas DeXe (DEXE) and Provenance Blockchain (HASH) are among the few rays of hope. The former soared by 47% over the last 24 hours, and the latter pumped by 26%. Rain (RAIN) is also in green territory, albeit registering a more modest increase.

The total crypto market cap has erased around $120 billion in a single day and is now below $2.23 trillion as of press time.

SOIL has positioned itself to become the first application to use XRP Ledger’s proposed native lending infrastructure as the network considers activating the XLS-65 and XLS-66 amendments.

According to a recent update shared by SOIL on X, the regulated yield protocol is preparing to operate on the XRP Ledger Lending Protocol and Single Asset Vault framework once the proposed amendments receive approval.

The project stated that XLS-65 and XLS-66 would enable a new class of lending and yield products directly on XRPL and voiced support for activating the changes as soon as possible.

The development comes as XRP Ledger participants review two proposals designed to introduce lending functions at the protocol level. While XLS-66 outlines a structure for fixed-term, uncollateralized loans backed by pooled liquidity, XLS-65 introduces the SingleAssetVault model, which allows multiple users to contribute assets to a shared vault that can supply liquidity to lending markets.

Recent work on the network has also focused on infrastructure improvements. As reported by crypto.news, XRP Ledger released version 3.2.0 on June 22, deploying fixes for several software issues after a security review by blockchain security firm Common Prefix identified numerical and behavioral edge cases in the network’s core implementation. According to the XRP Ledger Foundation, those fixes were included in the latest mainnet upgrade.

Proposed amendments create the foundation for lending markets

A demonstration published by SOIL provided an early look at how the system could function once the amendments move into production. The presentation showed several Single Asset Vaults operating on XRPL’s Lending DevNet environment.

In the demonstration, users deposited funds into separate vaults and received MBT tokens representing their positions. According to the presenter, each vault issues its own MBT token, allowing depositors to maintain an on-chain representation of their ownership share.

Additional deposits into multiple vaults showed how ownership records expand as liquidity increases. Transaction values and sequence data were displayed through an explorer interface, giving participants visibility into fund movements and vault activity.

According to SOIL, one of the intended use cases involves depositing assets into pooled vaults that can support lending activity while preserving transparent records of participation on-chain. Under the proposed framework, liquidity providers would be able to track their positions through the issued vault tokens.

Development remains in testing ahead of approval

Current testing remains limited to development environments. During the demonstration, the presenter stated that no wallet currently supports the Lending DevNet, requiring developers to rely on internal testing tools. The presenter explained that wallet seeds have been hardcoded and transactions are being assigned behind the scenes during testing.

If approved, XLS-65 and XLS-66 would introduce native lending capabilities directly into the XRP Ledger protocol. According to the proposal descriptions, the changes would support lending markets, liquidity pools, yield-generating products, and on-chain credit systems without relying on external infrastructure.

Meanwhile, activity across the XRP ecosystem continues to attract attention from both developers and traders. As reported earlier by crypto.news, XRP recently formed a bearish MACD crossover on the four-hour chart, a signal that pointed to weakening momentum and a potential retest of the $1 support zone.

At press time, XRP (XRP) was down about 2% over the past 24 hours and trading roughly 5% above the bearish target, leaving the token close to the projected support level.

Few names in online betting carry the weight of Bet365 and 888casino. They sit on top of regulated markets across Europe and parts of North America, with millions of players returning to them year after year. But the industry has new entrants worth paying attention to, and a fresh group of crypto-first casinos is starting to grow into real competition for the legacy operators. ZunaBet, which went live in 2026, is one of the platforms making that climb.

This piece looks at how Bet365 and 888casino stand today, and where ZunaBet is positioning itself as something new in the same space.

Decades of Industry Presence

Bet365 traces its roots back to 2000. From a UK base, it grew into a global operation covering sports betting, casino, poker, and bingo from one account. The brand handles deposits through familiar channels — cards, bank transfers, and e-wallets — and holds licenses in nearly every region it serves.

888casino predates Bet365 by three years, going back to 1997. As part of the 888 Holdings group, it stands as one of the original online casino brands. Its catalogue covers slots, table games, and live dealer rooms, and its strongest footprint sits in regulated parts of Europe and North America. Like Bet365, it runs purely on fiat and follows the licensing requirements of each market it enters.

Reliability is the calling card for both. But the trade-off is also obvious. Their payment options are bound to traditional banking, withdrawals can take days depending on the method, and their game catalogues sit well below what crypto-first casinos pull together. Loyalty rewards run on the same point-and-tier model the industry has used since the early 2000s.

ZunaBet Joins the Climb

ZunaBet went live in 2026 and has been gaining ground since. Strathvale Group Ltd owns the brand, which holds an Anjouan gaming license. What sets it apart from older operators starts at the architecture. ZunaBet was designed for crypto from the beginning — no retrofits, no add-ons.

Its game catalogue tops 11,000 titles from more than 60 studios. The list of providers reads like an industry who’s-who: Pragmatic Play, Hacksaw Gaming, Yggdrasil, BGaming, and Evolution all feature. That depth ranks among the largest crypto-focused collections out there and clears what Bet365 and 888casino can field in their licensed regions. Slots, table games, and live dealer streams all run from a single account.

The sportsbook side rounds things out. Football, basketball, tennis, NHL, and the other usual sports sit alongside CS2, Dota 2, League of Legends, and Valorant. Virtual sports and combat sports complete the menu. This brings ZunaBet into the same hybrid territory as Bet365 with a broader spread of markets.

How the Payment Models Differ

The split here is sharp. Bet365 and 888casino are fiat operations. Bank rails come with their own pace: processing windows, possible holds, and slower withdrawals depending on what the player chose at deposit.

ZunaBet’s payment stack is entirely crypto. Over 20 currencies are supported, covering Bitcoin, Ethereum, USDT across several chains, Solana, Dogecoin, Cardano, and XRP. Transactions carry no platform fees, and withdrawals process quickly. For anyone holding crypto or simply tired of waiting on bank transfers, the difference shows up immediately.

There’s also the question of reach. Crypto platforms aren’t pinned to specific licensed jurisdictions in the same way. Players in many regions can use ZunaBet’s full lineup without bumping into the patchwork rules legacy operators contend with. That kind of access matches how a younger demographic already operates online.

Sign-Up Promotions

Bet365 and 888casino offer welcome packages that vary heavily by region. Deposit matches or smaller new-player bonuses are typical, often paired with wagering rules that take some reading to navigate.

ZunaBet’s welcome offer stretches up to $5,000 plus 75 free spins, broken across three deposits. The first deposit pays 100% up to $2,000 plus 25 spins. The second adds 50% up to $1,500 plus 25 spins. The third returns to 100% up to $1,500 plus another 25 spins. Marketed as a 250% three-deposit package, it leaves more room for new players to find their footing than a single-deposit bonus would.

Loyalty Setup Differences

Bet365 keeps its loyalty side low-key, with offers landing in player accounts based on activity. 888casino takes the classic VIP route — point accumulation, free spins, and elevated promos for upper tiers. Both work, but both feel like extensions of a model the industry has been running on for ages.

ZunaBet flips the structure. Its loyalty program runs as a dragon evolution theme, with the mascot Zuno guiding players through six tiers. Squire starts the climb at 1% rakeback, then Warden at 2%, Champion at 4%, Divine at 5%, Knight at 10%, and Ultimate sitting at the top with 20% rakeback.

Climbing the tiers unlocks more than rakeback. Tier-based free spins go up to 1,000 spins, plus VIP club entry and double wheel spins along the way. The progression feels closer to advancing through a game than punching a loyalty card — a structure that connects with players who grew up on that mechanic.

Why ZunaBet Stands Out

Bet365 and 888casino remain solid options for anyone who values longevity and regulation. Neither brand is at risk of losing its position. But the bar for what online betting platforms should deliver keeps moving. Quick withdrawals, vast game libraries, and engaging reward systems are turning into baseline features rather than upgrades.

ZunaBet was built around that new baseline. Crypto-first means fast settlement and minimal fees. The library outsizes most established brands. The sportsbook covers traditional sports and esports without needing a second account. The dragon loyalty program turns regular play into something with shape and direction.

For players chasing speed, variety, and a more current feel, ZunaBet sits among the more interesting options available right now. It’s still building its name, but the trajectory points clearly forward. A new generation of players treats crypto, gamified rewards, and global access as defaults, not perks bolted onto the side.

Bet365 and 888casino built the online betting world that exists today. ZunaBet is one of the platforms working on what comes after it.

Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

In the same state, Fairshake backed incumbent Representative April McClain Delaney for $516,000, while also contributing ad spending in other states’ Tuesday primaries to Republican incumbent Representative Blake Moore in Utah and $1.3 million for one of the industry’s most reliable allies in the House, Representative Ritchie Torres, a New York Democrat. All of them also won their races or were winning, with McClain Delaney in an early lead with votes still being counted.

The most recent Federal Election Commission filings showed Fairshake with about $126 million still on-hand at the end of last month. But it’s spending heavily on the way to the November general elections in which the two-year destiny of the U.S. Congress will be decided.

If Boafo contributes to the rise of a new Democratic majority in the House, the crypto industry will have a campaign-finance bond with him and other Democrats the PAC has supported. A Democratic majority is set at 79% odds in betting on prediction market platform Kalshi, and if the party earns that status, it’ll have chairmanships of all the committees, complete with control of the chamber’s agenda and subpoena power.

Fairshake’s approach is to flood pro-crypto candidates from both parties with large-scale independent advertising that can’t legally be coordinated with the campaigns. The ads don’t typically mention crypto as a political issues but are instead just calculated to use whatever political message would be most helpful for the candidates.

The US Commodity Futures Trading Commission filed a lawsuit against Kentucky on Tuesday after the state sued prediction market operators last week, accusing them of operating unlicensed and illegal gambling platforms.

The lawsuit, filed in federal court, seeks to block Kentucky’s legal action against five prediction markets filed on Wednesday last week, calling for declaratory and injunctive relief. It names Kentucky Governor Andrew Beshear, Attorney General Russell Coleman and the Kentucky Horse Racing and Gaming Corporation, among others.

“Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said in a statement. “As I’ve consistently pledged, the CFTC is firmly committed to maintaining its exclusive jurisdiction over prediction markets, and today’s lawsuit against Kentucky is yet another example of the Commission protecting its federal interests.”

The CFTC has been ramping up its effort to maintain authority over prediction markets since Selig was appointed as chair in December. Kentucky is now the ninth state that the CFTC has sued over state authorities taking action against prediction markets.

Source: Mike Selig

Kentucky sued Polymarket and Kalshi, along with Kalshi partners Coinbase, Robinhood and Webull, claiming they are “doing business without a Kentucky gaming license or following state regulations” and that their sports event contracts “fall squarely within the definition of ‘sports wagering’ under Kentucky law.”

Sports betting has been under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation since 2023.

Related: Mark Zuckerberg ordered Meta staff to develop moneyless prediction market: NYT

The state also alleged the platforms offer users “few or no resources” to identify or seek help for a gambling problem as required by state law.  

In its lawsuit, the CFTC argued that Kalshi and Polymarket are designated contract markets under its authority, and their event contracts are “swaps” under federal commodities law. 

It argued that Coinbase, Robinhood and Webull are CFTC-registered futures commission merchants that can offer event contracts in partnership with a designated contract market.

The regulator also took aim at Kentucky’s recent law that imposed a 14.25% excise tax on prediction market transaction fees, arguing it was an attempt to make prediction markets economically unviable in the state.

“This tax essentially makes it impossible for prediction markets to operate in Kentucky,” the CFTC argued.

The lawsuit comes just weeks after CFTC similarly sued New Mexico to block the state’s efforts to apply state gaming laws to Kalshi.

In May, US President Donald Trump gave the CFTC moral support, saying it was “critically important” that the regulator was the authority on prediction markets.

Source: Donald Trump

Trump’s son, Donald Trump Jr., has invested in and is on the advisory board for Polymarket and is an adviser to Kalshi.

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