Wisconsin seeks preliminary injunction to halt Kalshi, Robinhood, and Coinbase event contracts
Wisconsin has filed for a preliminary injunction in federal court seeking to block Kalshi, Robinhood, and Coinbase from offering sports event contracts. The state labels the trading as open, repeated, and ongoing criminal violations of Wisconsin law. The motion serves as a fallback if the court denies Wisconsin's bid to remand the case to state court, reflecting escalating state-level pushback against sports-linked event contracts. The filing targets prediction markets tied to sporting events and comes as courts weigh competing claims of federal preemption and state gambling enforcement.
Kalshi must now defend against parallel injunction demands in Wisconsin and New Mexico while the CFTC fights Minnesota and Rhode Island in federal court. Any state-court loss on preemption arms regulators in Ohio and Pennsylvania with precedent to force geofencing or block operations outright.
Wisconsin joins New Mexico, Minnesota, and Rhode Island in active state-court litigation against federally registered prediction-market platforms, widening the multi-front assault on CFTC preemption that now spans four state attorneys general and two tribal nations.