Illegal sports betting; Wisconsin DOJ suing Kalshi, other platforms

MADISON, Wis. - The Wisconsin Department of Justice (DOJ) is suing Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com, and their affiliates.

The DOJ says it's to stop their "alleged facilitation of illegal sports betting, a form of unlawful commercial gambling, in Wisconsin."

This is a developing story, check back for updates. The DOJ will be hosting a virtual conference at 1:30 p.m. to provide more info.

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What is a prediction market?

Big picture view:

These platforms, called prediction markets, allow you to place money on just about everything.

That includes world events like the war in Iran, or sports like who is going to win the World Cup, or politics, like who is going to win the president’s race in 2028, or this year’s Wisconsin race for governor.

Right now, Polymarket shows $50,000 has gone into who will win the Democratic primary for Wisconsin governor. Mandela Barnes is currently ahead.

However, the focus of this lawsuit is mainly on illegal sports betting.

Response

What they're saying:

"As we've previously shared, Robinhood's event contracts are federally regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant, and regulated manner. We intend to defend ourselves against these claims." – Robinhood Spokesperson