Wisconsin sues Kalshi, Polymarket, others over sports event contracts

Wisconsin’s lawsuit against Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com deepens the battle between state gambling enforcers and federal regulators over sports prediction markets.

Wisconsin’s top law enforcement official has sued a group of fintech and crypto platforms, including Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com, accusing them of facilitating illegal sports betting by offering “event contracts,” according to complaints filed April 23 in Dane County.

Attorney General Josh Kaul is seeking preliminary and permanent injunctions to block the companies from offering sports-related markets to customers in Wisconsin and to have a court declare the operations unlawful under state gambling law and a public nuisance.

The case adds to a growing clash between state gambling laws and federally regulated prediction markets, as regulators and courts across the United States debate whether event contracts are financial instruments or illegal wagers.

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