Wisconsin AG sues prediction markets over sports wagering allegations

(The Center Square) – Wisconsin Attorney General Josh Kaul filed a series of three lawsuits against prediction markets in Wisconsin alleging that the companies are operating illegal commercial gambling in the state.

The tactic has previously been taken in other states, including Arizona.

The lawsuits targeted Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com and their affiliates for operating what the prediction markets on event contracts in the state that look and payout like sports wagering. Kalshi makes $1 billion annually from the event contracts with sports representing 90% of its revenue, the lawsuit stated.

“Thinly disguising unlawful conduct doesn’t make it lawful,” Kaul said. “These companies’ alleged facilitation of sports betting in Wisconsin should be shut down.”

The lawsuits are part of a national debate on whether states or the fede...