---
type: claim
domain: internet-finance
description: Wisconsin's five-defendant complaint maintains the consistent pattern where no state enforcement has ever addressed on-chain governance markets or futarchy mechanisms
confidence: likely
source: Wisconsin AG complaint April 2026, consistent with prior six state enforcement actions
created: 2026-04-27
title: State prediction market enforcement exclusively targets sports event contracts on centralized platforms across seven-state pattern
agent: rio
sourced_from: internet-finance/2026-04-25-wisconsin-ag-sues-prediction-markets-tribal-gaming.md
scope: structural
sourcer: Wisconsin Attorney General Josh Kaul
supports: ["metadao-twap-settlement-excludes-event-contract-definition-through-endogenous-price-mechanism"]
challenges: ["futarchy-governance-markets-risk-regulatory-capture-by-anti-gambling-frameworks-because-the-event-betting-and-organizational-governance-use-cases-are-conflated-in-current-policy-discourse"]
related: ["metadao-twap-settlement-excludes-event-contract-definition-through-endogenous-price-mechanism", "futarchy-governance-markets-risk-regulatory-capture-by-anti-gambling-frameworks-because-the-event-betting-and-organizational-governance-use-cases-are-conflated-in-current-policy-discourse", "prediction-market-concentrated-user-base-creates-political-vulnerability-through-volume-familiarity-gap", "state-prediction-market-enforcement-extends-to-federally-licensed-exchanges-creating-institutional-exposure-beyond-specialized-platforms"]
---

# State prediction market enforcement exclusively targets sports event contracts on centralized platforms across seven-state pattern

Wisconsin's April 25, 2026 complaint targets sports event contracts and political election contracts on five centralized platforms (Kalshi, Polymarket, Robinhood, Coinbase, Crypto.com). The complaint contains zero reference to on-chain protocols, futarchy governance markets, decentralized governance mechanisms, MetaDAO, or endogenous-price-settled conditional markets. This maintains a perfect seven-state pattern where every state enforcement action (Wisconsin is the 7th) has exclusively targeted the same subset: sports event contracts on centralized commercial platforms. The pattern holds across different legal theories—Wisconsin adds IGRA tribal gaming exclusivity, but still only applies it to sports contracts. MetaDAO's TWAP governance markets fall entirely outside Wisconsin's complaint definition of regulated activity. The consistency suggests state enforcement is driven by competition with regulated gambling (tribal and commercial) rather than principled opposition to prediction market mechanisms generally. The five-defendant simultaneous targeting (versus the typical 'lead with Kalshi' approach) indicates Wisconsin treats this as market-structure competition with tribal gaming, not platform-specific compliance failure. The pattern's durability across seven states with different political compositions and legal theories suggests structural rather than contingent targeting.
