Wisconsin Sues Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com For Violating Gambling Ban

The Wisconsin Department of Justice filed lawsuits on Thursday in Dane County Court against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com to halt what it considers to be illegal sports betting.

What's the Scoop?

• Unlawful Gambling: Wisconsin’s DOJ has filed lawsuits against five prediction market operators, alleging that their sports-related “event contracts” constitute illegal sports betting under state law. The complaint argues that sport-based event contracts violate the state's ban on "unlawful commercial gambling." Payouts remain tied to sporting outcomes, while attempting to circumvent gambling restrictions through a financial product wrapper.
• Coinbase Responds: Posting to X, Coinbase Chief Legal Officer Paul Grewal wrote, "Congress was clear – consumers deserve uniform, federal oversight over derivatives markets... Wisconsin should accept clear and consistent CFTC oversight of prediction markets – just as Congress intended."
• Injunction Requested: Wisconsin is seeking both preliminary and permanent bans to block named platforms from offering sports-related contracts to in-state users, labeling the activity a “public nuisance.”
• Change of Venue: Polymarket has already filed a notice of removal shifting its case to federal court; Kalshi, Robinhood, Coinbase and Crypto.com are expected to follow suit.