Wisconsin Attorney General Josh Kaul has filed lawsuits against several major online platforms, accusing them of facilitating illegal sports betting in the state through so‑called “event contracts.”
The companies named in the suit include Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com.
Kaul says these platforms have been operating outside Wisconsin law by offering contracts that allow users to wager on the outcomes of sporting events under the guise of prediction markets. “Except in limited circumstances, sports betting and other forms of commercial gambling have long been illegal in the state of Wisconsin,: Kaul said. “No company is above this law, no matter how creatively those companies try to disguise the activity that they’re engaged in”.
According to the lawsuit, the platforms “thinly disguise” sports wagers as event contracts — a type of financial instrument that pays out based on the outcome of a future event. Kaul argues that, in practice, these contracts function exactly like sports bets. “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,” he said.
The lawsuits come just as Wisconsin has enacted a new law legalizing online sports betting — but only under specific conditions. Kaul emphasized that the new legislation does not shield the companies named in the suit. “The new law won’t have bearing on what’s alleged in this suit because the new law specifically relates to gaming conducted through facilities on tribal lands in Wisconsin. That’s not the case in these cases,” he said.
The state is seeking to halt the companies’ operations related to event‑based sports wagering and impose penalties for violating Wisconsin gambling laws.