Wisconsin AG sues Kalshi, Polymarket, Robinhood, Coinbase and Crypto.com over illegal sports contracts!

Wisconsin's Department of Justice has filed suit against five major trading and prediction-market platforms — Kalshi, Polymarket, Robinhood, Coinbase, and Crypto.com — alleging that sports event contracts offered on their platforms violate state gambling law. The action marks one of the most sweeping state-level enforcement moves against prediction markets and regulated exchanges simultaneously.

The lawsuit puts a direct legal cloud over a product category that several of these platforms have aggressively expanded since the CFTC signaled federal tolerance for event contracts. A state court win for Wisconsin could set a precedent that forces platforms to geo-fence or suspend sports-linked contracts across other states with similar statutes.

For Coinbase and Robinhood in particular — both publicly listed and already navigating federal regulatory scrutiny — a state gambling…