Wisconsin election officials are telling residents they cannot legally bet on an election and vote in that same contest, setting off a fierce response from prediction market company Kalshi, which says the state’s guidance violates the Constitution.
The Wisconsin Elections Commission said state law disqualifies anyone who has made or become interested in a bet or wager on the outcome of an election from voting in that election. The reminder comes as federally regulated prediction markets, including Kalshi, continue expanding access to contracts tied to political races.
“We want voters to understand that they cannot legally make a bet on an election and cast a ballot in that same election,” Wisconsin Elections Commission Administrator Meagan Wolfe said. “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.”
The commission pointed to Wisconsin Statute § 6.03(2), which bars anyone with a direct or indirect interest in an election wager from voting in that election. It also cited Wisconsin Statute § 12.13(1)(a), saying knowingly voting while disqualified is a Class I felony. Commissioners unanimously approved a memorandum on the issue during their July 9 meeting, warning that suspected violations could trigger voter eligibility challenges and referrals to local prosecutors.
Kalshi rejected the commission’s interpretation almost immediately.
“The Wisconsin Elections Commission threatening to prosecute Wisconsin voters and strip away their voting rights for engaging in legal trading activity is unconstitutional and illegal,” Kalshi General Counsel Robert Denault wrote on X.
“Election markets certified by the CFTC and available on federally regulated exchanges are legal. Wisconsin hasn’t challenged them. And if Wisconsin believes election markets certified by the CFTC are improper, then it should sue the CFTC — not try to prosecute voters and take away their voting rights. The Wisconsin Elections Commission should retract this guidance before courts are required to force them to do so.”
Wisconsin state’s election guidance escalates clash with Kalshi
Benjamin Freeman, Kalshi’s head of government relations, also criticized the guidance.
“The Wisconsin Election Commission’s warning to people who trade on elections: ‘it could cost you your vote,’” Freeman wrote. “THIS IS INSANE. The Commission is implying they will literally disenfranchise voters who use Kalshi to trade elections. This is blatantly unconstitutional and illegal.”
He added that Kalshi has “hundreds of thousands of users in Wisconsin alone” and called the commission’s statement “active voter suppression.”
The dispute lands amid broader fights over prediction markets in Wisconsin. Earlier this year, Gov. Tony Evers signed Executive Order 294 barring executive branch employees from using confidential government information to profit from prediction markets or help others do so, saying public trust depends on integrity. State officials said no known violations prompted the order, but cited growing concerns as prediction markets expand.
Wisconsin has also sued Kalshi, Robinhood, Coinbase, and related companies, alleging sports-related event contracts amount to illegal sports betting under state law. Federal regulators have challenged parts of that effort. Meanwhile, the elections commission says Wisconsin’s voter qualification rules still apply regardless of where or how an election wager is placed.
Featured image: Kalshi / Canva
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