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Wisconsin Sues Kalshi, Coinbase, Robinhood Over Sports Event Contracts
Wisconsin Attorney General Josh Kaul sued Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com on April 23, alleging illegal sports betting through event contracts, and the complaint said about 90% of Kalshi’s business comes from sports-related contracts that generate more than $1 billion in annualized revenue. Kaul asked the Dane County court for preliminary and permanent injunctions and said the platforms’ operations violate Wisconsin gambling laws and constitute a public nuisance. The complaint also said Robinhood and Coinbase route user orders to Kalshi through distribution agreements. Regulators in Nevada, Arizona, and Tennessee have also taken similar legal actions or issued cease-and-desist orders.