Wisconsin Warns That Trading Election Contracts May Lead to Loss of Voting Rights in the Same Election, Kalshi Claims It Suppresses Voters

Odaily Planet Daily News: The Wisconsin Elections Commission has stated that if residents purchase contracts related to a specific election on Kalshi or Polymarket, they may lose the right to vote in that same election. The Commission noted that knowingly voting without qualification could constitute a Class I felony.



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



Benjamin Freeman, head of Kalshi's election division, stated that the guidance is "clearly unconstitutional and unlawful," adding that the company has hundreds of thousands of users in Wisconsin alone. Robert DeNault, Kalshi's head of enforcement and legal counsel, said that election markets certified by the CFTC and offered on federally regulated exchanges are legal.



A Polymarket spokesperson stated that the company will respond to the Commission's claims through proper legal channels. Both companies assert that their products are tradable financial contracts, not gambling.