Wisconsin joins prediction market fight, suing Kalshi, Coinbase, Polymarket, Robinhood and Crypto.com
Wisconsin is suing several major prediction market platforms, arguing that their event contracts constitute illegal gambling rather than regulated financial instruments.Summary
The state of Wisconsin has filed lawsuits against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, alleging that these platforms operate as unlicensed gambling venues. While the companies maintain that their "event contracts" are financial derivatives overseen by the Commodity Futures Trading Commission, Wisconsin Attorney General Josh Kaul argues that the platforms' own marketing materials confirm they facilitate sports betting. The legal dispute centers on whether these contracts should be regulated as federal financial instruments or as bets subject to state gambling laws. As state-level challenges grow, the conflict is expected to escalate to the U.S. Supreme Court to resolve whether federal financial rules preempt state gaming authority.
(Source：CoinDesk)