Wisconsin: Election Betting Ban Risks Voting Rights

The Wisconsin Elections Commission (WEC) has stated that participation in predictive election markets could disqualify residents from voting. In a press release, it was noted that current state laws explicitly prohibit betting on election outcomes. Specifically, statute 6.03 disqualifies voters who have wagered on election outcomes.

Pursuit for Election Bets

The WEC emphasized that involvement with platforms like Kalshi and Polymarket could lead to criminal prosecution. Wisconsin law considers voting without the necessary qualifications as a Class 1 felony. Voters who bet on elections while attempting to vote may face administrative issues and a loss of voting rights, as well as a case referred to the district attorney's office.

"We want voters to understand that they cannot legally bet on election outcomes and vote on them," said WEC administrator Megan Wolfe.

However, Wolfe acknowledged the difficulties in tracking such violations: "We are unable to monitor bets on these platforms, but it is important for voters to understand the possible consequences."

Lawsuits Against Predictive Market Operators

Earlier this year, Wisconsin legalized online sports betting with exclusive rights for tribes. However, lawsuits soon followed against predictive market operators such as Polymarket, Kalshi, Coinbase, Crypto.com, and Robinhood. The state accuses them of organizing unauthorized sports betting. In response, the Commodity Futures Trading Commission (CFTC) filed a countersuit, claiming that Wisconsin is violating its exclusive rights to regulate predictive markets. The case is ongoing, and efforts are being made to bring the operators back under state jurisdiction.

Insider Trading Ban

In May, Wisconsin Governor Tony Evers signed an order prohibiting public officials from using insider information for personal gain in predictive markets. "Public officials are strictly prohibited from using any non-public information for profit or to avoid losses," states the order. Violations can lead to termination and criminal charges.

The WEC's warnings have become another step in the ongoing battle between state authorities and predictive markets.