The Wisconsin Elections Commission sent out a warning to voters to be careful with prediction markets, and the operators are not happy.
The agency released a public service announcement this week to tell voters that if they bet on an election offered on prediction markets, they cannot legally vote in that same election.
“We want voters to understand that they cannot legally make a bet on an election and cast a ballot in that same election,” WEC 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.”
Wisconsin is among 32 states where election betting is illegal in at least some form. The state law against election betting dates to 1849.
Wisconsin voting rules
The Wisconsin announcement included two statutes:
- Statute § 6.03(2) explicitly disqualifies electors from voting “in any election in which the person has made or become interested, directly or indirectly, in any bet or wager depending upon the result of the election.”
- Statute § 12.13(1)(a) makes it a Class I felony to intentionally vote in an election without being qualified to do so.
A bipartisan commission within the agency voted and approved a memo earlier this month detailing legal ramifications and concerns about prediction markets and elections. That included the legal decision from counsel that prediction markets trades count as a “bet.”
The Milwaukee Journal Sentinel reported the WEC “doesn’t plan to go looking for voters who have violated the law.” Still, violating it constitutes a Class I felony, including a maximum penalty of $10,000 fine and 3 1/2 years in prison.
Kalshi unhappy with announcement
That announcement in turn upset Kalshi.
A Kalshi spokesperson told Wisconsin Public Radio that the Wisconsin regulations are “voter suppression.”
“Kalshi has hundreds of thousands of users in Wisconsin,” a Kalshi spokesperson told WPR. “Implying they can’t vote because they use Kalshi is not only dishonest, it is voter suppression! If even a handful of our users in Wisconsin see this and get scared away from voting, that could EASILY swing an election.”
Wisconsin’s battle with prediction markets
Wisconsin is already a front in the legal war between states and the prediction markets industry. Earlier this year, Wisconsin Atty. Gen. Josh Kaul filed a lawsuit against Kalshi arguing it offers illegal sports betting.
In turn, the Commodity Futures Trading Commission sued Wisconsin to protect its federal jurisdiction over prediction markets.
Additionally, Wisconsin’s Ho-Chunk Nation is one of multiple tribes that have opened lawsuits against Kalshi claiming the platform violates the Indian Gaming Regulatory Act.
