BroadChain learned that at 13:30 on April 24, Wisconsin filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, alleging that their prediction markets constitute unlicensed gambling activities. The state attorney general stated, "A thin veneer cannot make illegal conduct legal."
The complaint points out that the event contracts on these platforms meet the definition of gambling under Wisconsin law, citing Kalshi's self-description as "the first legal sports betting platform in the country" and Polymarket's claim as "a platform where people can bet on the outcomes of future events" as evidence. The core of this case is whether the platform contracts are financial instruments regulated by the CFTC or bets subject to state gambling laws. This dispute may ultimately reach the Supreme Court.
Previously, Nevada and New York have taken similar stances, while the Third Circuit Court of Appeals has supported Kalshi's position.