
PANews April 24 news, according to CoinDesk reports, Wisconsin has filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, accusing them of operating a prediction market that constitutes unlicensed gambling. The state attorney general stated, “Weak disguises do not legalize illegal behavior.” The lawsuit pointed out that the event contracts on these platforms fit the definition of stakes under Wisconsin law and cited promotional phrases such as Kalshi's claim of being the “first nationwide legal sports betting platform” and Polymarket's claim of being a “platform where people can bet on the outcomes of future events” as evidence.
The core issue of the case is whether the contracts on the platforms are financial instruments governed by the CFTC or stakes governed by state gambling laws. This dispute is likely to end up in the Supreme Court. Previously, states such as Nevada and New York have taken similar positions, while the Third Circuit Court supported Kalshi's stance.
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