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Wisconsin sues Kalshi, Robinhood, Coinbase, and other organizations over alleged illegal sports betting
Odaily Planet Daily reports that Wisconsin Attorney General Josh Kaul filed a lawsuit on April 23 in Dane County against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, accusing the aforementioned fintech and crypto platforms of facilitating illegal sports betting through event contracts. Josh Kaul requests the court to issue preliminary and permanent injunctions, declaring that these platforms’ operations under Wisconsin gambling law are illegal and pose a public hazard. The complaint states that re-labeling bets as event contracts does not change their fundamental function; Kalshi derives approximately 90% of its business from sports-related contracts, with annual revenue exceeding $1 billion. Robinhood and Coinbase route user orders to Kalshi markets through distribution agreements, also involved in this case. Currently, regulators in Nevada, Arizona, and Tennessee have also taken similar legal actions or issued cease and desist orders.