Wisconsin sues Coinbase, Polymarket over prediction markets

The U.S. state of Wisconsin has filed a lawsuit against several prediction market operators, including Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, CoinDesk reported. State authorities argue that the 'event contracts' offered on these platforms constitute gambling rather than investment products. The move comes as the U.S. Commodity Futures Trading Commission (CFTC) has recently sued three states, including Arizona, that regulate prediction markets. The CFTC contends that these markets fall under its jurisdiction as swap transactions. According to the report, Wisconsin's action could potentially escalate the jurisdictional dispute to the Supreme Court.