Published on: April 23, 2026, 06:20h.
Updated on: April 23, 2026, 06:20h.
- Wisconsin’s DOJ is taking legal action against five prediction market companies
- The state accuses these platforms of facilitating unlawful sports betting activities
- This lawsuit follows the recent approval of a tribal sports betting legislation
The Wisconsin Department of Justice (DOJ) has announced a lawsuit against five prediction market platforms, led by Attorney General Josh Kaul (D), who claims these companies are engaging in illegal sports betting practices.
The five companies targeted include Coinbase Global, Crypto.com, Kalshi, Polymarket (which currently does not operate in the U.S.), and Robinhood Markets. The lawsuits, filed today in Dane County, assert that these prediction market operators are “creating a public nuisance” by offering sports event contracts to consumers in Wisconsin.
“Disguising unlawful activities does not validate them,” remarked Kaul in a statement. “The alleged facilitation of sports wagering by these companies in Wisconsin should be halted.”
Additionally, the state claims these prediction market firms are violating state gambling regulations by charging fees to residents who engage in buying and selling event contracts.
Strategic Timing of Wisconsin’s Legal Action
While it may seem coincidental, the lawsuits initiated by Kaul arrive two weeks after Wisconsin Governor Tony Evers (D) signed legislation permitting the state’s 11 federally recognized tribal nations to operate online sports betting.
According to OpenSecrets.org, Kaul received a $3,500 campaign donation from the Forest County Potawatomi, which manages a tribal casino in Wisconsin. States with large tribal gaming interests and national advocacy groups representing tribal casinos have been vocal critics of prediction markets, asserting that these companies violate state gaming regulations and threaten tribal sovereignty.
Data indicates that, when given a choice, most retail bettors prefer using sports betting apps over prediction markets, with the preference typically leaning towards well-known operators like DraftKings and FanDuel.
However, some industry analysts suggest that the law enacted by Evers may not appeal to commercial operators, as it mandates a minimum revenue split of 60/40 between tribes and external companies. This could confine the online sports betting landscape in Wisconsin to tribal-run applications, effectively excluding the most recognizable operators.
Wisconsin Pursuing Established Legal Avenues
Wisconsin is following a well-trodden legal route in its actions against prediction market operators. Similar to other states pursuing litigation against these businesses, Wisconsin seeks both preliminary and permanent injunctive relief.
“The lawsuits also seek preliminary and permanent injunctions to forbid the defendant companies from offering sports-related event contracts to customers in Wisconsin,” as stated by Kaul’s office.