Wisconsin Warns That Trading Election Contracts May Result in Loss of Voting Rights in That Same Election; Kalshi Says It Suppresses Voters

Odaily News: The Wisconsin Election Commission has stated that residents who purchase contracts related to a specific election on Kalshi or Polymarket may lose their eligibility to vote in that same election. The commission noted that knowingly voting while ineligible could constitute a Class I felony.



The commission unanimously approved a legal memorandum on prediction markets during its July 9 meeting and issued a statewide notice on Tuesday. The restrictions only apply to the corresponding election and do not automatically affect a trader's voting eligibility in other unrelated elections.



Benjamin Freeman, Head of Kalshi's Election Division, said the guidance is "clearly unconstitutional and illegal," adding that the company has hundreds of thousands of users in Wisconsin alone. Robert DeNault, Head of Enforcement and Legal Counsel at Kalshi, stated that election markets certified by the CFTC and offered on federally regulated exchanges are legal.



A Polymarket spokesperson said the company will respond to the commission's claims through appropriate legal proceedings. Both companies argue that their products are tradable financial contracts, not gambling.