Wisconsin Sues Five Platforms Over Unlicensed Gambling

Wisconsin's Department of Justice filed lawsuits on Thursday against five major financial and cryptocurrency platforms, accusing them of operating unlicensed gambling operations through prediction markets. The suits, lodged in Dane County Circuit Court, target Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com, alleging that their event-based contracts on outcomes such as sports games amount to illegal sports betting under state law.

Attorney General Josh Kaul, whose office brought the cases, argued that the platforms disguise wagering as financial instruments to evade Wisconsin's gambling regulations. "Sports betting and other forms of commercial gambling have long been illegal in the state of Wisconsin," Kaul said. "No company is above this law, no matter how creatively those companies try to disguise the activity they're engaged in." The complaints highlight contracts tied to events like NCAA tournament games, where users purchase positions at probability-based prices and receive fixed payouts of $1 if correct or nothing if incorrect. Prosecutors likened the structure to traditional bets, noting that platforms collect transaction fees comparable to casino commissions.