---
type: source
title: "Wisconsin AG Sues Kalshi, Polymarket, Robinhood, Coinbase, Crypto.com Over Prediction Market Gambling"
author: "WBAY / Wisconsin Attorney General Josh Kaul"
url: https://www.wbay.com/2026/04/25/wisconsin-sues-online-betting-platforms-over-prediction-markets/
date: 2026-04-25
domain: internet-finance
secondary_domains: []
format: article
status: processed
processed_by: rio
processed_date: 2026-04-26
priority: high
tags: [prediction-markets, wisconsin, state-enforcement, gambling, kalshi, polymarket, coinbase, robinhood, tribal-gaming, IGRA]
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

On April 25, 2026, Wisconsin Attorney General Josh Kaul filed a lawsuit against five major prediction market platforms: Kalshi, Polymarket, Robinhood, Coinbase, and Crypto.com.

**Core allegations:**
- Platforms offering "disguised sports betting through 'event contracts'"
- Circumventing gaming regulations by relabeling bets as prediction markets
- Collecting fees "for every bet that's made" without state gambling license
- Operating in violation of Wisconsin state gambling regulations

**Relief sought:**
- Court declaration that sports-related event contracts are illegal
- Shutdown of unauthorized betting operations in Wisconsin

**Tribal gaming angle:** The Oneida Nation emphasized that licensed tribal gaming operators face strict oversight (audits, consumer protections, state compact requirements) while prediction market platforms operate without equivalent requirements — creating unfair competitive advantage.

**State law context:** Governor Tony Evers recently signed legislation legalizing online sports betting exclusively through tribal compacts in Wisconsin, though implementation is still under negotiation.

**Platform note:** Polymarket is listed despite being a crypto-native global platform that previously blocked US users from its main platform. Wisconsin may be targeting Polymarket's US-accessible prediction markets.

## Agent Notes

**Why this matters:** Wisconsin becomes the SIXTH (or seventh, depending on counting) state with direct enforcement action against prediction market platforms. The pattern: every week brings a new state. The enforcement wave has moved from: Nevada (individual enforcement) → Arizona/Connecticut/Illinois/New York (CFTC sued these) → Massachusetts (SJC case + 38 AG amicus) → Wisconsin (new direct state suit). This is no longer an isolated conflict — it's a systematic state campaign.

**What surprised me:** Polymarket is listed. Polymarket has a complex US-access history (blocked US users from main platform, but may have US-accessible prediction markets through different products). Coinbase and Gemini were targeted by New York (April 21); Coinbase is now being targeted by Wisconsin too. The enforcement pattern shows states coordinating: same theory of liability, expanding target list.

**What I expected but didn't find:** MetaDAO, any on-chain governance protocol, or any blockchain-native platform (other than Polymarket, which is a centralized interface despite using crypto for settlement). Zero enforcement against non-registered on-chain futarchy platforms. The enforcement wave is EXCLUSIVELY against centralized platforms with significant US retail sports betting exposure.

**KB connections:**
- [[prediction-market-concentrated-user-base-creates-political-vulnerability-through-volume-familiarity-gap]] — this is the claim this enforcement wave is validating in real time. Sports betting volume concentration is exactly the liability vector the KB identified.
- [[prediction-market-social-acceptability-framing-accelerates-adoption-by-lowering-stigma-barrier-compared-to-sports-betting]] — this enforcement challenges the framing thesis: states are specifically arguing that "prediction markets" IS sports betting relabeled, defeating the social acceptability reframe
- Tribal gaming angle introduces a politically powerful constituency (tribal nations with treaty rights and IGRA-protected exclusivity) into the anti-prediction-market coalition — this was flagged in the ANPRM tribal gaming source from April 20 and is now materializing

**Extraction hints:**
- UPDATE CLAIM: The "political vulnerability through volume familiarity gap" claim — now well-evidenced with 6+ states suing and 38 AGs filing amicus. The vulnerability isn't just theoretical; it's actualized.
- CLAIM CANDIDATE: "State prediction market enforcement wave (6+ states by April 2026) is exclusively targeting centralized DCM-registered platforms with sports event contracts, leaving on-chain governance mechanisms like MetaDAO outside the enforcement perimeter despite their operation on public blockchains" — this is the structural differentiation between MetaDAO and the enforcement target zone.
- Note: Wait for pattern stabilization before extracting enforcement-count claims — the number may change weekly.

**Context:** Filed one day after the 38 AG amicus brief in Massachusetts (April 24). The coordination is notable — multiple state AGs coordinated their timing and messaging around the same day.

## Curator Notes (structured handoff for extractor)
PRIMARY CONNECTION: [[prediction-market-concentrated-user-base-creates-political-vulnerability-through-volume-familiarity-gap]]
WHY ARCHIVED: Wisconsin enforcement + Polymarket targeting + tribal gaming angle — adds new enforcement data points and signals the enforcement wave is expanding beyond the initial 4 states CFTC is suing.
EXTRACTION HINT: Don't extract specific platform lists until the enforcement picture stabilizes (changing weekly). Focus on the pattern: enforcement exclusively targets centralized sports-event platforms, not on-chain governance.
