The state of Wisconsin has sued Kalshi and other platforms, claiming that prediction markets constitute unlicensed gambling.

Odaily Planet Daily reports that Wisconsin Attorney General Josh Kaul has filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, alleging that their prediction markets are essentially unlicensed gambling activities. The complaint claims that the platforms' marketing methods and event contract pricing structures meet the state's definition of gambling. This case further exacerbates the conflict between state-level regulation and the federal jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). (CoinDesk)