Svmuu News: An industry coalition comprising Kalshi, Polymarket, and others has filed a lawsuit seeking to block Kentucky’s 14.25% transaction tax on prediction markets. The tax, passed by the Kentucky State Legislature in April of this year, imposes a 14.25% sales tax on transaction fees charged by prediction market operators and is considered the first state-level tax specifically targeting this industry in the United States. The plaintiffs, the “Fair Markets Coalition,” argue that the tax constitutes a discriminatory measure, violates the Constitution, and may be superseded by federal law. The lawsuit notes that imposing a higher tax burden on prediction markets is manifestly unfair and could distort the competitive structure of the market. (ABC News)