Wisconsin Targets Major Platforms Over Prediction Market Offerings
- Wisconsin Attorney General Josh Kaul has filed lawsuits against Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase in Dane County court.
- The complaints aim to ban sports-related event contracts as illegal gambling under state law Wis. Stat. § 945.03(1m).
- Kalshi is alleged to generate over $1 billion annually from sports contracts, comprising about 90% of its total revenue.
- New York Attorney General Letitia James has also filed a similar lawsuit against Coinbase and Gemini.
- The Commodity Futures Trading Commission claims exclusive federal authority over prediction markets amid ongoing regulatory disputes.
These legal actions reflect increasing regulatory pressure on prediction markets across multiple states, challenging the platforms’ operations under gambling laws.
With Wisconsin’s lawsuit adding to the nationwide scrutiny, prediction market operators face complex regulatory landscapes that could impact their business models significantly.( Source)
