Kalshi, Wisconsin Spar Over Law Banning Betting on Elections

^{Wisconsin voters are subject to a state law dating back to 1849 that prohibits wagering on an election in which they also vote. (Photo: Xinhua / Alamy)}

Wisconsin's Elections Commission (WEC) reminded voters this month of a state law that has been on the books since 1849: you cannot legally bet on an election in which you also cast a ballot. In response to the advisory, officials at Kalshi are fuming and calling the law “voter suppression.

According to the commission, a voter who both bets on and attempts to vote in the same election could have their vote invalidated and their case referred to the state’s district attorney.

The announcement, made on July 21, was posted on the WEC website and referenced a memo the commission had unanimously approved earlier in the month which outlined what it saw as the legal concerns about prediction market platforms and elections in Wisconsin.

“We want voters to understand that they cannot legally make a bet on an election and cast a ballot in the same election,” WEC Administrator Meagan Wolfe said in a statement. “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.”

177-Year-Old Election Law at Center of Firestorm

The advisory triggered a furious response from officials at Kalshi, who claimed the law violated the rights of Wisconsin voters. 

Benjamin Freeman, who works in Politics Growth at Kalshi, slammed the decision on X, calling the warning "blatantly unconstitutional and illegal.” In his statement, he said the Commission implied it would disenfranchise hundreds of thousands of local Kalshi users.

But as both the WEC and many of the replies to Freeman’s statement pointed out, this is not a new law. In fact, the advisory was simply reminding voters of a Wisconsin election law that has been on the books since 1849, just a bit before the explosion of prediction markets like Kalshi.

In response to the pushback, WEC Commissioner Ann Jacobs challenged claims that the state's position was illegal.

“You can’t be a felon on active supervision and vote,” WEC Commissioner Ann Jacobs told NPR. “If you’re 17, you can’t vote, and betting on an election where you vote, it’s the same thing, it’s not allowed.”

Multiple States Battling It Out with Kalshi

This could prove to be a problem for Kalshi, Polymarket, and other prediction markets in states beyond Wisconsin as well.  Nearly half the states, including Wisconsin, are locked in legal battles with Kalshi over who should regulate prediction markets. 

Wisconsin is not alone; election betting is prohibited in some or all circumstances in 32 states. New York and Delaware have similar provisions.

“In New York State, voting in an election in which an individual has placed any bet or wager on the result is prohibited,” New York State Board of Elections Director of Public Information Kathleen McGrath told Vox.

While New York officials have yet to issue a formal opinion on how that impacts users who trade on elections at prediction markets, it is similar to Wisconsin’s prohibition. 

The dispute comes as state officials and gaming regulators have engaged in protracted legal battles with prediction markets over the status of contracts for sports and other events. While states have argued that these markets violate state gaming laws, the prediction market platforms say they are exclusively regulated by the Commodity Futures Trading Commission.