Wisconsin sues Kalshi, Robinhood, Coinbase and other institutions for alleged illegal sports betting

Odaily Planet Daily News Wisconsin Attorney General Josh Kaul filed a lawsuit on April 23 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 requested the court to issue preliminary and permanent injunctions, declaring that these platforms' operations under Wisconsin's gambling laws are illegal and constitute a public nuisance. The complaint states that the platforms' relabeling of bets as event contracts does not change their essential function, with approximately 90% of Kalshi's business coming from sports-related contracts and annualized revenue exceeding $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.