Wisconsin Files Lawsuits Against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com Over Prediction Market Operations

Com on April 24, 2026, alleging their prediction markets function as unlicensed gambling operations under state law. The lawsuits, filed in Dane County, argue that event contracts on these platforms constitute wagers. CoinDesk reported that the complaints describe these contracts as bets where users pay to take positions on real-world outcomes and receive fixed payouts if correct.

Com and its derivatives arm, while another focuses on Polymarket and affiliated entities. A third complaint names Kalshi alongside Robinhood and Coinbase, noting that Robinhood and Coinbase route prediction market orders to Kalshi. The filings cite sports-related markets, including contracts tied to NCAA tournament games, with winning positions paying out $1 and losing ones returning nothing.

' CoinDesk reported that the state argues these descriptions align with gambling rather than investing. The complaints also emphasize that platforms generate revenue by charging transaction fees, likening the model to a casino taking a cut of wagers placed on its floor.

The lawsuits emphasize that this structure falls squarely within its statutory definition of a bet, regardless of how the products are labeled or who takes the other side of the trade.

Earlier in April 2026, the Third Circuit sided with Kalshi, treating the CFTC’s decision not to block the contracts as settling the jurisdictional question. ' The cases add to ongoing tensions between state gambling laws and federal regulation of prediction markets as financial instruments.

CoinDesk reported that the complaints specifically address how these platforms facilitate access for state residents, including through partnerships like those with Robinhood and Coinbase.