Traders participating in prediction markets in Wisconsin may risk losing their voting rights or facing felony charges when placing bets on elections, as clarified by a recent directive from the Wisconsin Election Commission (WEC).
The commission recognizes the rising popularity of yes/no markets and admits monitoring trader activities on these platforms poses challenges. Nonetheless, they emphasize that it’s unlawful for voters to place bets on elections in which they have cast their votes.
“We urge voters to recognize that they cannot legally place a bet on an election and simultaneously vote in that same election,” stated WEC Administrator Meagan Wolfe. “We may not track individuals betting on these platforms, but it’s crucial for voters to understand the implications of betting on election outcomes.”
According to Wisconsin Statute § 6.03(2), any elector may be disqualified from participating in an election if they have “taken an interest, directly or indirectly, in any bet or wager related to the election results.”
Under Wisconsin Statute § 12.13(1)(a), voting in an election without adequate qualifications is classified as a Class A felony.
Wisconsin’s Strict Stance on Prediction Markets
While state-level data varies, some prediction market operators estimate having potentially hundreds of thousands of users in Wisconsin.
Wisconsin is known for its stringent regulations regarding all-or-nothing exchange platforms. In April, Attorney General Josh Kaul (D) initiated legal action against five prediction market platforms, accusing them of conducting an unlicensed form of sports betting. Following this, Gov. Tony Evers (D) enacted Executive Order 294, prohibiting executive branch employees from exploiting non-public information for profit in prediction markets.
Earlier this month, the bipartisan WEC unanimously passed a memo outlining “legal implications and concerns regarding prediction markets in the context of elections.”
“WEC staff believe that betting on elections through prediction markets is likely to increase in Wisconsin,” the memo indicates. “Due to the lack of clarity and legal consensus about whether prediction markets should be viewed as gaming or betting, many residents may not realize that using prediction markets constitutes betting or that such actions disqualify them from voting in accordance with Wis. Stat. § 6.03(2), which could lead to felony charges.”
Other States Disapprove of Election Betting
Although sports-related derivatives are at the forefront of ongoing legal battles against prediction markets, the matter of political derivatives is also gaining attention. As this is a relatively new regulatory area, traditional sportsbooks have historically been prohibited from offering bets on elections in the U.S., making it a less-explored field for gaming firms.
Currently, twenty-three states have enacted laws against election wagering, and there is hope for Congress to enact uniform bans nationwide.
“At this moment, no federal legislation addresses prediction markets associated with elections. However, the Stop Trading On Predictions (STOP) Corrupt Bets Act of 2026 (H.R. 8123) has been introduced to prohibit prediction market betting on election outcomes,” mentions the WEC. “Moreover, the U.S. Senate has already restricted its members and staff from participating in prediction market betting.”