The Wisconsin Department of Justice filed three complaints Thursday in Dane County against five prediction market platforms—Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase—alleging their sports event contracts violate state gambling laws. The complaints cite specific offerings like NCAA tournament bets on Final Four matchups, point spreads, and scoring outcomes, arguing these function identically to traditional sports wagers despite being labeled as event contracts. Wisconsin seeks declaratory judgments and injunctions to bar future offerings to state residents but does not seek to void existing contracts. The action follows similar moves by New York, which sued Coinbase and Gemini seeking $3.4 billion combined, and cease-and-desist orders from Arizona, Connecticut, and Illinois. The CFTC has countersued those three states, with Chairman Michael S. Selig asserting exclusive federal regulatory authority over prediction markets and rejecting what he called a fragmented patchwork of state regulations.
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