U.S. State of Wisconsin Sues Kalshi and Other Platforms, Claims Prediction Markets Constitute Unlicensed Gambling

Wisconsin Attorney General Josh Kaul has filed lawsuits against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, alleging that the prediction markets they offer are essentially unlicensed gambling activities.

The complaint states that the marketing methods of these platforms and the pricing structure of event contracts meet the definition of gambling under state 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)