Wisconsin Warns Traders About Election Betting Consequences

Traders on prediction markets in Wisconsin who bet on election outcomes may lose their right to vote and face criminal charges. This follows new guidance from the Wisconsin Elections Commission. The commission acknowledges that the popularity of such platforms is growing but reminds local voters that betting on elections in which they vote is illegal.

“We want voters to understand that they cannot legally bet on elections while also voting in them,” said WEC Administrator Meagan Wolfe.

According to Wisconsin law, any voter who participates in a wager or bet depending on the outcome of an election may be disqualified from voting. It is also considered a Class A misdemeanor to vote without proper qualification.

Wisconsin's Tough Stance Against Prediction Market Betting

Estimates from operators suggest that there are hundreds of thousands of customers on prediction markets in Wisconsin. The state is known for its strict stance against all-or-nothing exchanges. In April, Attorney General Josh Kaul sued five such markets for offering unlicensed forms of sports betting. In May, Governor Tony Evers signed an order prohibiting executive branch employees from using nonpublic information for profit on prediction markets.

Legislative Consequences

In early July, the WEC unanimously approved a memorandum on the legal consequences of betting on prediction markets. The commission believes such election-related betting will grow in popularity in Wisconsin and reminded that they can lead to criminal consequences under the law.

Response from Other States

Betting on political events is becoming an increasingly significant topic in regulation. Traditional bookmakers have long refrained from offering betting on elections in the U.S., and this is a new direction for operators. Twenty-three states have already enacted laws prohibiting betting on elections, and Congress is expected to introduce uniform bans at the federal level.

According to the new bill H.R. 8123, proposals for betting on election outcomes may be prohibited. The U.S. Senate has also banned its members and employees from betting on prediction markets.