Wisconsin is ramping up its battle against prediction markets, warning residents that they could lose their right to vote if they wager on elections on the platforms.
In a press release on Tuesday, the Wisconsin Elections Commission (WEC) said current laws explicitly prohibit betting on elections. The WEC cited statute 6.03, which explicitly disqualifies electors from voting “in any election in which the person has made or become interested, directly or indirectly, in any bet or wager depending upon the result of the election.”
Residents Could Be Prosecuted for Election Betting
The WEC added that anyone who trades on elections at platforms such as Kalshi and Polymarket could be prosecuted, as Wisconsin law also “makes it a Class 1 felony to intentionally vote in an election without being qualified to do so.”
Voters who place bets on elections and then try to vote could face administrative challenges that, if successful, would prevent them from casting their ballots and could also result in a referral to the District Attorney, the WEC threatened.
“We want voters to understand that they cannot legally make a bet on an election and cast a ballot in that same election,” WEC Administrator Meagan Wolfe said.
However, Wolfe admitted that the agency may struggle to follow up on its threat. She added, “We are not able to police someone placing a bet on these platforms, but it’s important for voters to understand the consequences if they bet on an election outcome.”
Wisconsin Sues Major Prediction Market Operators
Wisconsin legalized online sports betting earlier this year with tribal exclusivity. Soon after, the state filed lawsuits against five major prediction market operators, Polymarket, Kalshi, Coinbase, Crypto.com, and Robinhood.
The state claims the operators are offering unlicensed sports betting through their sports event contracts, which are “indistinguishable from an ordinary sports bet,” as defined by Wisconsin’s law.
The CFTC responded by filing a counter-lawsuit against the state, alleging it is infringing on the agency’s exclusive right to regulate prediction markets.
The cases remain ongoing with the state fighting to remand the lawsuits back to state courts after the prediction market operators moved the battles to federal court.
Prediction markets suffered another legal blow in Washington state this week as a judge issued a preliminary injunction against Kalshi. Judge John McHale ruled that the company is a betting platform and rejected its argument that the Commodity Exchange Act (CEA) preempts state law.
Governor Signs Order Prohibiting Insider Trading
In addition to the lawsuits, Wisconsin Governor Tony Evers signed an executive order in May banning state government
workers from profiting from insider information on prediction markets.
“All Wisconsin state executive branch employees are strictly prohibited from disclosing or using any nonpublic information obtained due to their public service to personally profit from, avoid loss from, or assist another person or entity, including spouses and family members, in profiting or avoiding loss from participation in prediction markets,” stated the order.
Officials found to violate the order face dismissal and possible criminal charges. The WEC warning adds to the seemingly never-ending battles between state authorities and prediction markets.
