Wisconsin Sues Polymarket, Coinbase, and Others Over Illegal Gambling Allegations

Key Facts

The legal battle over prediction markets has intensified as the CFTC filed suit against New York, marking the fourth state targeted by the commission in just three weeks. This federal action follows only three days after the New York Attorney General launched lawsuits against Coinbase and Gemini. In a significant show of state-level resistance, Attorneys General from 38 states have united to back Massachusetts in its ongoing legal case against Kalshi. The CFTC continues to push for exclusive jurisdiction over event contracts, aiming to block individual states from imposing restrictive gambling laws on the sector. Analysts suggest that this growing coalition of states poses a major hurdle for platforms like Robinhood and Polymarket. These overlapping legal challenges are expected to set a definitive precedent for the regulatory classification of prediction markets in the United States.

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