Wisconsin Lawsuit Against Kalshi and Other Platforms Claims Prediction Markets Constitute Unlicensed Gambling

Wisconsin Attorney General Josh Kaul has filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, alleging that the prediction markets they offer are fundamentally unlicensed gambling activities under state law.

The complaint states that the marketing methods of these platforms and the pricing structure of their event contracts meet the definition of gambling under Wisconsin law. This case further intensifies the conflict between state-level regulation and the federal jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). (CoinDesk)