Wisconsin DOJ Sues Crypto Firms Over Illegal Sports Betting
Summary
Wisconsin DOJ filed lawsuits on April 23, 2026, against Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com, and their affiliates in Dane County Circuit Court, alleging these companies facilitate illegal sports betting by disguising it as 'event contracts' that pay out based on sports outcomes. The complaints allege the companies collect fees on each bet and generate revenue from Wisconsin residents in violation of state gambling law. Kalshi alone reportedly generates over $1 billion annually from sports contracts, representing approximately 90% of its total estimated annualized revenue. The lawsuits seek a declaratory judgment that the defendants are creating a public nuisance under Wis. Stat. ยง 945.03(1m), plus preliminary and permanent injunctions barring the companies from making sports-related event contracts available to Wisconsin customers.
“"Thinly disguising unlawful conduct doesn't make it lawful," said AG Kaul.”
Crypto-asset platforms and fintech firms offering event contracts or prediction-market products should assess whether their products allow users to wager on sports outcomes, and if so, whether their current user-geolocation restrictions or contractual structuring would withstand scrutiny under state gambling laws. Wisconsin DOJ's position โ that disguising the economic function does not alter its legal character โ signals that 'event contract' labeling alone is unlikely to provide a defense against gambling-enforcement claims.
About this source
GovPing monitors AG: Wisconsin Press Releases for new courts & legal regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 9 changes logged to date.
What changed
Wisconsin DOJ filed civil enforcement suits against six cryptocurrency and financial platforms, alleging that sports-related 'event contracts' offered on their platforms constitute unlawful commercial gambling under Wisconsin law. The complaints assert the defendants collect fees on each sports bet and profit from wagering activity, characterizing the contracts' sports-outcome payouts as indistinguishable from conventional betting. The lawsuits request both a declaratory judgment establishing a public nuisance under Wis. Stat. ยง 945.03(1m) and injunctive relief prohibiting the defendants from making sports-related event contracts accessible to Wisconsin customers.
Crypto-asset platforms and financial technology companies offering prediction-market or event-contract products should be aware that Wisconsin's position treats the commercial facilitation of sports wagering โ regardless of contractual labeling โ as unlawful gambling. Platforms with users in Wisconsin face potential litigation exposure if their products allow betting on sports outcomes. Firms operating event contracts or similar products in states with restrictive gambling statutes should evaluate whether customer-location restrictions, disclosures, or product modifications are necessary to mitigate enforcement risk.
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
NEWS FOR IMMEDIATE RELEASE April 23, 2026 Wisconsin DOJ Sues To Stop Alleged Illegal Sports Betting Operations in Wisconsin MADISON, Wis. - The Wisconsin Department of Justice (DOJ) on Thursday announced that it is suing Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com, and their affiliates, to halt their alleged facilitation of illegal sports betting, a form of unlawful commercial gambling, in Wisconsin. "Thinly disguising unlawful conduct doesn't make it lawful," said AG Kaul. "These companies' alleged facilitation of sports betting in Wisconsin should be shut down." Except in limited circumstances, sports betting and other forms of commercial gambling have long been illegal in Wisconsin. Yet, as alleged in these lawsuits, the defendant companies have chosen to flout Wisconsin law through disguising the sports betting they facilitate on their online platforms as "event contracts," which pay out just like ordinary bets based on the odds of sports-related outcomes. The complaints further allege that the companies collect a fee for every bet made, meaning they generate revenue from Wisconsinites by violating the state's gambling laws. Kalshi, as one example, reportedly generates more than $1 billion in annual revenue from its sports contracts, representing around 90% of its total estimated annualized revenue. As the complaints allege, by making money from the sports bets they facilitate, these companies are engaging in unlawful gambling activity. Wisconsin DOJ's lawsuits, filed on Thursday in Dane County, request a declaration that, by making sports-related event contracts available for trading by customers
Page 1 of 2
DOJ Communications Office DOJCommunications@doj.state.wi.us (608) 266-1220
located in Wisconsin, the defendant companies are violating Wis. Stat. ยง 945.03(1m) and thereby creating a public nuisance. The lawsuits additionally request preliminary and permanent injunctions enjoining and restraining the defendant companies from making sports-related event contracts available for trading by customers located in Wisconsin. View a copy of the Kalshi, Robinhood, and Coinbase, and affiliates complaint. View a copy of the Polymarket and affiliates complaint. View a copy of the Crypto.com and affiliates complaint.
Page 2 of 2
DOJ Communications Office DOJCommunications@doj.state.wi.us (608) 266-1220
Parties
Related changes
Get daily alerts for AG: Wisconsin Press Releases
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from Wisconsin DOJ.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when AG: Wisconsin Press Releases publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.