Wisconsin Sues Kalshi, Robinhood, Coinbase and Others Over Alleged Illegal Sports Betting

Odaily Planet Daily News 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 asking the court to issue preliminary and permanent injunctions, declaring that these platforms' operations violate Wisconsin gambling laws and constitute a public nuisance. The complaint states that the platforms' relabeling of bets as event contracts does not change their essential function, noting that approximately 90% of Kalshi's business comes from sports-related contracts, generating annualized revenue of over $1 billion. Robinhood and Coinbase are also implicated in the case for routing user orders to Kalshi markets through distribution agreements. Regulators in Nevada, Arizona, and Tennessee have also taken similar legal actions or issued cease-and-desist orders.