Wisconsin filed three lawsuits Thursday against online prediction market companies that the state Department of Justice accused of “working together to facilitate illegal sports betting throughout the state.”

“Except in limited circumstances, sports betting and other forms of commercial gambling have long been illegal in the state of Wisconsin,” Attorney General Josh Kaul said during a news conference Thursday afternoon. “No company is above this law, no matter how creatively those companies try to disguise the activity that they’re engaged in.”

The lawsuits were filed as Wisconsin prepares to renegotiate 11 tribal gaming compacts to include online sports betting under a law Gov. Tony Evers signed earlier this month. The legislation legalized online sports betting on the condition that the required computer servers are housed on tribal land.

Sports betting has been legal in Wisconsin since 2021, but only in person at tribal casinos.

The state’s lawsuits target online prediction markets that allow users to put money on the outcome of everything from major world events to sports outcomes.

The emergence of prediction markets including Kalshi and Polymarket has prompted states across the country to enact legislation and file lawsuits, Stateline reported in March.

The online platforms have been estimated to generate more than $13 billion every month, with the bulk of those revenues coming from sports betting, Stateline reported.

Kaul said Wisconsin was filing its own lawsuit, but a handful of other states, including recently New York, have filed similar suits citing their own state regulations.

“These companies have chosen to flout Wisconsin law by thinly disguising the sports betting that they facilitate through what are called event contracts,” Kaul explained. “But our position in this case is that event contracts are no different than ordinary sports bets. The companies collect a fee, we allege, for every bet that’s made, leading them to earn significant revenue from Wisconsinites through violations of our state’s gambling regulations.”

The goal of the suits is to shut down the platforms in Wisconsin, Kaul said. The state isn’t currently seeking monetary damages, but he said that possibility hasn’t been ruled out should there be a legal basis to demand them and the facts to support such a demand.

He said the suit was filed in response to “a huge increase in this type of activity” in the last few years.

Each of the three lawsuits is filed in Dane County circuit court as a “complaint to abate public nuisance” and accuse the defendants of “facilitating illegal sports betting throughout the state.” They ask the court to find them in violation of state law and to issue an injunction against the companies for sports-related trading by Wisconsin users.

One suit names Kalshi Inc., along with four affiliates; Robinhood Markets and two affiliates; and two Coinbase companies. The second names three companies doing business as Polymarket or affiliates of Polymarket. The third suit names Foris Dax Markets and North American Derivatives Exchange Inc., doing business as Crypto.com.

In a statement received late Friday, Coinbase Chief Legal Officer Paul Grewal pointed to a Third Circuit Court of Appeals ruling April 6 that states don’t have jurisdiction over prediction markets.

“Congress was clear — consumers deserve uniform, federal oversight over derivatives markets,” Grewal said. “As the Third Circuit held, state enforcement that seeks to prohibit prediction markets — like Wisconsin’s lawsuit [Thursday] against Coinbase and others — ‘is exactly the patchwork that Congress replaced wholecloth by creating the CFTC.’ Wisconsin should accept clear and consistent CFTC oversight of prediction markets — just as Congress intended.”

All of the businesses in the lawsuits list an identical street address in Wilmington, Delaware, except for the three Robinhood companies, which list an address in Dover, Delaware.

All three suits also include as defendants unnamed private individuals or entities that “facilitate” the platforms’ transactions.

The lawsuits focus on sports betting, although the platforms also host transactions involving other kinds of events and predictions. Kaul said the state alleges sports-related gambling is “a very large part” of the activity on Kalshi and other platforms.

The suits describe transactions on the platforms as “indistinguishable from an ordinary sports bet” as defined in Wisconsin law.

Crypto.com, for example, “relabels its sports bets as ‘event contracts,’ meaning contracts traded between buyers and sellers at agreed upon prices that mimic the odds of a sports-related outcome,” the lawsuit naming Crypto.com states. “Parties to these ‘event contracts’ wager money on whether a given sports-related outcome will occur, just as when people bet on that same outcome using traditional casino-style sportsbooks.”

On April 3, 2026, the suit states, “traders could buy contracts taking the position that the University of Michigan would win its Final Four matchup with the University of Arizona for around $0.54, which reflected a roughly 54% projected chance of Michigan winning. When Michigan won, event contract holders who bet on that team winning received $1 per contract and those who instead bet on Arizona winning received nothing.”

Kaul said there was “no direct relationship” between the lawsuits and the enactment of the new law allowing online sports betting. “What we are alleging is violations of Wisconsin law, and the allegations would be the same whether or not there had been the new legislation passed.”

This report was updated 4/27/2026 with a statement from Coinbase. 

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Gov. Tony Evers signed bills into law this week that will legalize sports betting, provide funding to the University of Wisconsin system to help student athletes get paid for the use of their name, image and likeness as well as measures that address internet crimes against children. 

AB 601, now 2025 Wisconsin Act 247, will legalize online sports betting in the state. This will be an expansion of access to sports betting, which has been legal in Wisconsin since 2021, but only in person at tribal casinos. 

Following a legal framework first used in Florida, the law will allow for the servers that manage the bets to be housed on tribal land. The law was designed this way because the Wisconsin constitution requires that any legal gambling be managed by the state’s federally recognized Native American tribes.

The bill faced a complicated path through the state Legislature. At first it sped through the hearing process, only to be pulled from the Assembly floor calendar. It finally received  a vote about three months after it passed committee. When it passed the Senate in a 21-12 vote, with some opposition from both Democrats and Republicans, one Republican senator said the bill would be the reason Republicans lose their majority in this year’s midterm elections. The bill also faced opposition from lobbying groups representing the country’s largest online sportsbooks. 

Evers said he signed the bill because it is his obligation to “always to respect the sovereignty of Tribal Nations in Wisconsin,” and because it will provide an opportunity to put revenue paid into the state into mental health programs and efforts to combat the opioid crisis. However, he said, he also had “reservations” about signing the bill. 

“This legislation is the beginning of a conversation, not the end of one,” Evers said in a statement. “The real work begins today.” 

Online sports betting will not become immediately available since  the tribes and the state will need to renegotiate their gaming compacts. The governor is tasked with the responsibility of negotiating compacts with the tribes under the Wisconsin Constitution. A new agreement would then need approval from the U.S. Bureau of Indian Affairs. 

Before the bill passed the Legislature, Evers had expressed concerns about getting support from all of the tribes. 

All 11 tribes then signed a letter saying that each was on board with the legislation, according to WisPolitics.

“Each of the 11 Tribes must now work diligently — and together — to shape the future of sports betting in Wisconsin,” Evers said. “What I will not accept is a plan that fractures this opportunity into unequal pieces, allowing some Tribes to reap great benefits while leaving only crumbs for others. An approach that exacerbates long-standing inequalities among Tribal Nations is not good for Wisconsinites or Wisconsin.” 

Wisconsin is the 33rd state to legalize online or mobile sports betting since a 2018 decision by the U.S. Supreme Court struck down a 1992 federal law that had barred betting on football, basketball, baseball and other sports in most states.

“A joint venture — with each Tribe contributing, and each Tribe benefiting in equal shares — is gaining traction in these discussions, and I strongly support pursuing this or a similar model,” Evers said in his statement. “This is an opportunity to avoid the mistakes of past compact amendments that left some Tribes and their members in poverty while only lifting up a few.”

Student athlete name, image and likeness

Evers also signed a bill this week to help University of Wisconsin student athletes in getting paid for the use of their name, image and likeness (NIL) and to provide the UW system with funds so it can help provide NIL opportunities to those athletes.

AB 1034, now 2025 Wisconsin Act 203, provides $14.6 million annually in state funds to go towards debt service for the costs of UW-Madison’s athletic facilities, $200,000 for the UW–Milwaukee Klotsche Center and $200,000 for the UW-Green Bay soccer complex. Providing the state funds is meant to free up other funds so the UW can provide students with opportunities for NIL agreements. The bill passed with nearly unanimous support in the Assembly with a 95-1 vote, but in the Senate the margin was much closer with a 17-16 vote. 

Evers partially vetoed the bill to remove language related to the funds going to “maintenance costs” saying he wanted to allow greater flexibility in how the UW system can use the funds. 

“I object to the potential confusion created by referring to ‘maintenance,’ and my partial veto will better reflect the intent that the funding alleviate existing debt service. I also object to how this bill unnecessarily restricts the use of funds appropriated for athletic facilities within the University of Wisconsin System,” Evers wrote in his veto message. “I believe that greater flexibility is necessary to ensure this funding can be used effectively and allow the system to maximize the state’s investment.” 

The law codifies some policies that UW-Madison and other campuses already have in state law, including prohibiting NIL contracts that conflict with school policies and providing money in exchange for athletic performance, as well as those that require student athletes to endorse alcoholic beverages, gambling, banned athletic substances or illegal activities or substances. It also includes a requirement that student athletes disclose third-party NIL deals they enter. 

UW schools are also going to be able to contract with organizations that can help student athletes find NIL opportunities.

The law also includes language exempting records related to the “generation, deployment, or allocation of revenue generated by an intercollegiate athletic program” from the state’s open records law in an effort to “protect competitive interests and student privacy.” Open records advocates expressed concerns about the provision as the bill was debated. UW representatives said the provision would only be used to clarify what is already the UW’s existing practice of denying access to student athlete NIL agreements and certain university records that are related to NIL strategy, allocation, revenue generation. 

Addressing internet crimes against children

Evers signed four bills into law to help combat internet crimes against children.

The laws build on previous efforts to address online crimes affecting children. Last year Wisconsin passed a law that defined  “sextortion” as a crime. Lawmakers started working on that legislation after 15-year-old Bradyn Bohn from Kronenwetter, a village outside of Wausau, died by suicide after being targeted online by a perpetrator who convinced him to share nude photos of himself and told him that he needed to send money or face major consequences. He suffered through hours of threats and was coerced into sending money before his death.

AB 923, now 2025 Wisconsin Act 215, will allow for victims of a sexual extortion to sue their perpetrator for damages including for emotional distress, punitive damages, attorneys’ fees and investigation costs. In the case that someone died by suicide due to sexual extortion, a victim’s family would be able to file a wrongful death suit. 

Sexual extortion has become a growing threat in the U.S. in recent years. From October 2021 to March 2023, the FBI and Homeland Security Investigations received over 13,000 reports of online financial sextortion of minors that included at least 12,600 victims, mostly boys, and led to at least 20 suicides.

The other bills give the DOJ additional resources and tools to address internet crimes against children. 

AB 957, now 2025 Wisconsin Act 216, provides $400,000 in each year of the 2025-27 state budget to the state Department of Justice (DOJ) to enforce laws against internet crimes against children and AB 958, now 2025 Wisconsin Act 217, provides four new DOJ positions that will focus on internet crimes against children. 

AB 964, now 2025 Wisconsin Act 21, gives the attorney general administrative subpoena authority in the case of a sextortion crime if the victim was a child at the time of the violation.

AB 966, now 2025 Wisconsin Act 219, will require the DOJ to conduct a children’s online digital safety awareness campaign and provide materials on digital safety awareness to schools for free.

Other bills Evers took action on 

• AB 1027 was vetoed. It would have instructed the Wisconsin Department of Health Services to turn over data related to SNAP to the Department of Health Services to provide to the U.S. Department of Agriculture information. Evers said in his veto message that he objected “to sharing Wisconsinites’ most sensitive personal data, including their Social Security numbers, without the federal government having to meaningfully demonstrate how Wisconsinites’ personal data will be appropriately secured, will not be able to be accessed by broad swaths of federal employees, and will not be shared inappropriately both within and outside of the federal government.”
• AB 759, now 2025 Wisconsin Act 240, was signed into law. It will make Deferred Action for Childhood Arrivals (DACA) status holders in Wisconsin eligible to apply for occupational licenses.
• AB 373, now 2025 Wisconsin Act 241, was signed into law. It creates a $2,000 nonrefundable income tax credit for parents of a stillborn child. The credit is meant to provide financial relief to help parents with expenses associated with the stillbirth.
• AB 918, now 2025 Wisconsin Act 202, makes adoption a required topic to be covered for school districts that choose to offer human growth and development instruction, also known as sex education. Wisconsin school districts are not required to offer human growth and development instruction.
• SB 782, now 2025 Wisconsin Act 245, extends a penalty for falsely texting 911 to report an emergency. Violators could face fines between $100 and $600 and/or up to 90 days in jail for a first offense. A subsequent offense committed within four years of the first would be a Class H felony.

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Betting on an election one is voting in is illegal in Wisconsin.

Politics betting has become popular on platforms like Kalshi and Polymarket. Just this year, people have placed lucrative bets on the capture of the Venezuelan leader Nicolás Maduro and on the war with Iran, among other events. 

On Kalshi, people have placed bets worth tens of thousands of dollars on Wisconsin’s Supreme Court election on April 7 and the governor’s primary election on Aug. 11.

Ann Jacobs, Wisconsin’s Elections Commission chair, noted on X that voters’ ballots can be disqualified and thrown out if they were found to have bet on the election. 

Wisconsin Statute 6.03(2) specifies that no one is allowed to vote in any election in which the person has placed “any bet or wager depending upon the result of the election.” The idea behind the law has existed since 1849.

This fact brief is responsive to conversations such as this one.

Sources

• Kalshi: Wisconsin bets
• Wisconsin state statute: 6.03

Is it illegal for Wisconsin voters to bet on election results? is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.