The Wisconsin Department of Justice filed lawsuits on Thursday in Dane County Court against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com to halt what it considers to be illegal sports betting.
• Unlawful Gambling: Wisconsin’s DOJ has filed lawsuits against five prediction market operators, alleging that their sports-related “event contracts” constitute illegal sports betting under state law. The complaint argues that sport-based event contracts violate the state's ban on "unlawful commercial gambling." Payouts remain tied to sporting outcomes, while attempting to circumvent gambling restrictions through a financial product wrapper.
• Coinbase Responds: Posting to X, Coinbase Chief Legal Officer Paul Grewal wrote, "Congress was clear – consumers deserve uniform, federal oversight over derivatives markets... Wisconsin should accept clear and consistent CFTC oversight of prediction markets – just as Congress intended."
• Injunction Requested: Wisconsin is seeking both preliminary and permanent bans to block named platforms from offering sports-related contracts to in-state users, labeling the activity a “public nuisance.”
• Change of Venue: Polymarket has already filed a notice of removal shifting its case to federal court; Kalshi, Robinhood, Coinbase and Crypto.com are expected to follow suit.