Wisconsin Attorney General Josh Kaul has filed lawsuits against Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase. The suits allege that their prediction market offerings, particularly those involving sports-related events, constitute illegal gambling and public nuisances under state law.
The complaints, filed in Dane County court, seek to ban these platforms from serving Wisconsin residents. Court documents cite marketing materials from the platforms, including Kalshi's claim of being "The First Nationwide Legal Sports Betting Platform," and Polymarket's description of markets as a "platform where people can bet on the outcome of future events."
Wisconsin estimates Kalshi generates over $1 billion annually from sports contracts, representing approximately 90% of its total revenue. This action by Wisconsin follows a similar lawsuit filed by New York Attorney General Letitia James against Coinbase and Gemini for their prediction market offerings.
These state-level enforcement actions indicate increasing regulatory pressure on prediction markets across multiple jurisdictions. The federal government, through the Department of Justice and the Commodity Futures Trading Commission (CFTC), has also been involved in disputes over regulatory authority concerning these platforms.