Wisconsin: Trading Election Prediction Contracts Could Bar Voters

The Wisconsin Elections Commission issued guidance saying residents who trade election prediction-market contracts may be barred from voting in the same contest and could face felony charges if they cast a ballot. The commission concluded such trades likely qualify as a “bet or wager” under Wisconsin law, which disqualifies anyone who has “made or become interested, directly or indirectly, in any bet or wager depending upon the result of the election.” Intentionally voting without the required qualifications is a Class I felony under state law.

The warning followed a unanimous July 9 vote by the commission to approve a legal memo directing staff to inform voters about potential consequences of trading on platforms that offer election-related contracts. The memo cites Wisconsin Statute § 6.03(2) and explains that an arrangement in which money is offered and could be won or lost based on an election outcome fits the statute’s definition of a bet. Commission staff noted it would be difficult for someone who offered money in a prediction market to truthfully state they had not made a wager.

WEC Administrator Meagan Wolfe told the commission officials want voters to know they “cannot legally make a bet on an election and cast a ballot in that same election.” The memo focuses on voting eligibility rather than declaring trading on prediction platforms illegal and points out the commission does not have the authority to monitor individual participation on those platforms.

Prediction market operators disputed the commission’s interpretation. A Kalshi spokesperson described the implication that users could be prevented from voting as “dishonest” and “voter suppression,” adding that the guidance could discourage Wisconsin users from voting. Polymarket indicated it would address the commission’s claims through the appropriate legal process.

Commissioner Ann Jacobs defended the guidance, urging voters to choose candidates “based upon who they believe is the best person for the job” rather than to “line their pocketbooks.”

The commission’s advisory comes amid multiple legal challenges over prediction markets. In April, Wisconsin sued several firms alleging they facilitate illegal gambling under state law. The Commodity Futures Trading Commission then filed a federal suit arguing the Commodity Exchange Act gives the CFTC exclusive authority over federally listed event contracts and preempts state gambling enforcement. The Ho-Chunk Nation has separately sued, alleging certain contracts amount to unauthorized Class III gaming on tribal lands.

The WEC memo urged local election officials to inform voters about the statutory prohibition and the potential felony consequence for knowingly voting while disqualified due to a wager tied to the election.