Wisconsin Seeks Injunction Against Robinhood in $1 Billion Sports Betting Suit
Wisconsin’s DOJ sued Robinhood and four other prediction market platforms for offering sports-based event contracts deemed illegal under Wis. Stat. § 945.03(1m), seeking preliminary and permanent injunctions to block in-state sports betting. The complaint highlights Kalshi’s $1 billion annual sports revenue, about 90 percent of its total.
1. Lawsuit Filed by Wisconsin DOJ
Wisconsin’s Department of Justice filed lawsuits in Dane County Court against Robinhood and four other prediction market operators, alleging their sports-based event contracts violate the state’s ban on unlawful commercial gambling.
2. Illegal Gambling Allegations and Revenue
The complaints argue that event contracts tied to sporting outcomes circumvent Wis. Stat. § 945.03(1m), labeling the platforms’ offerings a public nuisance and noting Kalshi generates over $1 billion annually from sports contracts, roughly 90 percent of its revenue.
3. Injunction Requests
Wisconsin is seeking both preliminary and permanent injunctions to block the named platforms from offering sports-related contracts to in-state users, aiming to halt the disputed betting operations.
4. Regulatory Impact on Robinhood
The lawsuit adds to a broader regulatory clash between state authorities and federal oversight bodies like the CFTC, highlighting increased legal risks for Robinhood’s prediction market products.