Wisconsin joins the battle for regulation of prediction markets, suing platforms such as Kalshi and Polymarket.

CoinFeed reported on April 24th that, according to CoinDesk, Wisconsin has filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, accusing their prediction markets of being unlicensed gambling operations. The state attorney general stated, "A weak disguise does not legalize illegal activities." The complaint alleges that the events contracts on these platforms meet the definition of betting under Wisconsin law, citing Kalshi's claim of being "the first legal sports betting platform in the country" and Polymarket's claim of being "a platform where people can bet on the outcome of future events" as evidence. The core issue in the case is whether the contracts on the platforms are financial instruments governed by the CFTC or betting governed by state gambling laws. This dispute is likely to ultimately reach the Supreme Court.