Cryptoeconomics

News, data and analysis on tokenized assets, market design and digital economic systems.

Regulator

Wisconsin Attorney General

The state's chief legal officer, who on 23 April 2026 filed three public nuisance actions in Dane County against Kalshi, Polymarket and Crypto.com and against Robinhood and Coinbase as the brokers that distribute their contracts. Wisconsin is the only state where a federal court has so far refused the CFTC an injunction against that enforcement.

Kind Regulator
Jurisdiction United States
Stories filed 1

The profile

The Wisconsin Department of Justice is led by an elected attorney general, Josh Kaul since 2019, and enforces the state's commercial gambling statute at Wis. Stat. section 945.03(1m) through public nuisance actions under sections 823.01 and 823.02. Its three complaints of 23 April 2026 allege that sports-related event contracts are bets and that accepting, recording or forwarding them for gain is commercial gambling, irrespective of a federal designation; the relief sought is a declaration and preliminary and permanent injunctions restraining the companies from offering those contracts to customers located in Wisconsin. The department's distinguishing move on this beat was to name the distribution layer at the outset: the Kalshi complaint names Robinhood Markets, Robinhood Derivatives, Robinhood Securities, Coinbase Global and Coinbase Financial Markets alongside the venue, four months before the City of Baltimore did the same thing in Maryland. Three of those state court actions were removed to the Western District of Wisconsin, where motions to remand are pending, and the United States and the CFTC sued the state in the Eastern District on 28 April. The Division of Gaming, which regulates licensed gambling and whose administrator is a co-defendant in the exchanges' federal suits, sits in the Department of Administration rather than in the Department of Justice.

Frameworks and functions

Public nuisance action
The statutory route the department uses against event contract venues. Sections 823.01 and 823.02 let the attorney general sue to enjoin and abate a public nuisance on behalf of the state, which converts a criminal gambling prohibition into a civil claim for an injunction without any licensing decision being made.
Commercial gambling
Wis. Stat. section 945.03(1m), a Class I felony. Subsections (b), (c) and (g) reach a person who for gain receives, records or forwards a bet, becomes custodian of anything of value bet, or uses a wire communication facility in connection with a bet, which is the theory that makes a venue and its broker both liable.
Exchange wagering
Not a licensed category in Wisconsin. Unlike Maryland and Colorado, whose codes define wagering between two customers through a licensed operator, Wisconsin's statute has no exchange wagering licence to apply for, so a venue cannot comply by being licensed and the dispute has only two outcomes.

Coverage

Developments in which Wisconsin Attorney General is a named party, newest first.

On the record

Novig sues Wisconsin officials over sports event contract enforcement

Ludlow Exchange, trading as Novig, filed a 45 page complaint in the Western District of Wisconsin on 14 August 2026 seeking a declaration that the Commodity Exchange Act preempts the state's gambling statutes. It is its fifth suit against a state officer since 4 August, and it follows a federal court in the same state refusing the CFTC the same relief on 28 July.

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