Wisconsin Sues Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase Over Sports Event Contracts

Apr 24, 2026

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.

Wisconsin's Lawsuits Against Prediction Market Platforms

▪The Wisconsin Department of Justice does not seek to void or invalidate outstanding sports-related event contracts where a Wisconsin customer is a party.
▪The Wisconsin complaint against Polymarket alleges the platform offers sports-related event contracts to Wisconsin customers that amount to illegal bets under state law.
▪The Wisconsin complaint against Crypto.com alleges the exchange offers moneyline, point spread, and totals contracts on professional and college sports.
▪The Wisconsin Department of Justice filed three complaints in Dane County on Thursday seeking to abate a public nuisance arising from five companies' sports-related event contract offerings.
▪Crypto.com charges exchange fees of $0.02 per $1 contract and $0.10 per $10 contract, plus technology fees on certain transactions.
▪Wisconsin's lawsuits target Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, along with various affiliates of each company.
▪Wisconsin Attorney General Josh Kaul stated that thinly disguising unlawful conduct doesn't make it lawful.
▪The Wisconsin complaint against Kalshi, Robinhood, and Coinbase alleges the three companies offered sports-related event contracts that function identically to traditional sports wagers.

Expanding State-Level Regulatory Actions Nationwide

▪New York Governor Kathy Hochul signed an executive order this week banning state employees from using nonpublic information obtained through official duties to bet on prediction markets.
▪New York is seeking a minimum of $2.2 billion from Coinbase and $1.2 billion from Gemini.
▪Tennessee and Arizona have sued to prevent Kalshi from offering certain markets.
▪New York Attorney General Letitia James sued Coinbase and Gemini on Tuesday, alleging their prediction market platforms constitute illegal gambling operations.
▪The New York complaint took issue with Coinbase and Gemini allowing users between the ages of 18 and 21, while New York law requires bettors to be 21 for mobile sports wagering.

Federal Pushback Against State Regulation

▪CFTC Chairman Michael S. Selig stated that Congress rejected a fragmented patchwork of state regulations for prediction markets.
▪The Commodity Futures Trading Commission sued Connecticut, Arizona, and Illinois on April 3, challenging their efforts to regulate prediction market operators, including Kalshi and Polymarket.
▪CFTC Chairman Michael S. Selig stated that the agency will safeguard its exclusive regulatory authority over prediction markets.

Perspective of Wisconsin Department of Justice

▪Wisconsin Attorney General Josh Kaul stated that thinly disguising unlawful conduct doesn't make it lawful.

Perspective of Commodity Futures Trading Commission

▪CFTC Chairman Michael S. Selig stated that Congress rejected a fragmented patchwork of state regulations for prediction markets.
▪CFTC Chairman Michael S. Selig stated that the agency will safeguard its exclusive regulatory authority over prediction markets.