Wisconsin Sues Kalshi, Robinhood, Coinbase, and Others Alleging Illegal Sports Betting

Odaily reported that on April 23, Wisconsin Attorney General Josh Kaul filed a lawsuit in Dane County against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, accusing these fintech and crypto platforms of facilitating illegal sports betting through event contracts. Josh Kaul is requesting the court to issue preliminary and permanent injunctions, declaring that the platforms' operations violate Wisconsin's gambling laws and constitute a public nuisance. The complaint states that repackaging wagers as event contracts does not change their fundamental nature, with approximately 90% of Kalshi's business coming from sports-related contracts, generating annualized revenue exceeding $1 billion. Robinhood and Coinbase are also implicated in the case, routing user orders to Kalshi's markets through distribution agreements. Regulators in Nevada, Arizona, and Tennessee have also taken similar legal actions or issued cease-and-desist orders.