Wisconsin’s elections commission has warned that residents who buy election-related contracts on Kalshi or Polymarket could lose their eligibility to vote in that same election, setting up a direct clash between state election rules and federally regulated prediction markets. The commission said knowingly voting while ineligible could amount to a Class I felony. It unanimously approved a legal memorandum on prediction markets at a July 9 meeting and issued a statewide notice on Tuesday. The restriction, according to the commission, applies only to the specific election tied to the contract and would not automatically affect a trader’s eligibility in other unrelated elections. Kalshi pushed back sharply. Benjamin Freeman, head of elections at Kalshi, called the guidance “clearly unconstitutional and illegal,” adding that the company has hundreds of thousands of users in Wisconsin alone. Robert DeNault, Kalshi’s head of enforcement and legal counsel, said election markets certified by the Commodity Futures Trading Commission and listed on federally regulated exchanges are lawful. A Polymarket spokesperson said the company would respond through proper legal channels. Both firms maintain that their products are tradable financial contracts rather than gambling.
Wisconsin’s elections commission said residents who buy contracts tied to an election on Kalshi or Polymarket may lose their eligibility to vote in that same election.
The commission said that knowingly voting while ineligible could constitute a Class I felony.
Commission approved memo and issued statewide notice
The commission unanimously approved a legal memorandum on prediction markets at its July 9 meeting and released a statewide notice on Tuesday.
According to the commission, the restriction applies only to the specific election linked to the contract. It would not automatically affect a trader’s eligibility to vote in other unrelated elections.
Kalshi says the guidance is unconstitutional and illegal
Benjamin Freeman, head of elections at Kalshi, said the guidance is “clearly unconstitutional and illegal,” and said the company has hundreds of thousands of users in Wisconsin alone.
Robert DeNault, Kalshi’s head of enforcement and legal counsel, said election markets certified by the Commodity Futures Trading Commission, or CFTC, and offered on federally regulated exchanges are legal.
Polymarket says it will respond through legal channels
A Polymarket spokesperson said the company would respond to the commission’s position through appropriate legal process.
Both companies argue that their products are tradable financial contracts, not gambling.
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