The Wisconsin Elections Commission (WEC) has issued a warning stating that residents who engage in trading election prediction market contracts could face serious legal repercussions, including felony charges, if they subsequently vote in the same election.
According to WEC, the contracts available on platforms like Kalshi and Polymarket likely qualify as a “bet or wager” under Wisconsin's election laws. This means that individuals who either place or show interest in a bet related to an election are deemed ineligible to vote in that election. Voting without the required qualifications is classified as a Class I felony.
This warning adds complexity to the ongoing legal disputes surrounding prediction markets in Wisconsin. While various regulatory bodies at both state and federal levels, along with tribal gaming interests, continue to debate whether these products are classified as gambling or as federally regulated financial instruments, WEC maintains that the state’s election laws are quite explicit.
The Commission made this announcement following a unanimous decision to approve a legal memo during its meeting on July 9. This memo instructed staff to inform voters about the potential legal implications of trading in election prediction markets.
WEC Administrator Meagan Wolfe emphasized, “We want voters to understand that they cannot legally place a bet on an election and still cast a ballot in that same election. While we cannot monitor betting activities on these platforms, it is crucial for voters to be aware of the consequences of betting on election outcomes.”
WEC pointed out that Wisconsin Statute § 6.03(2) disqualifies anyone from participating in any election if they have made or expressed interest in any bet or wager based on the election's outcome.
The Commission's staff believes that trading in election prediction markets falls under this prohibition, stating, “The prohibition against ‘any bet or wager depending upon the result of the election’ as outlined in § 6.03(2) includes engaging in trades on election-related prediction markets.”
The memo clarifies that Wisconsin law defines a bet as an agreement where one party stands to gain or lose something valuable based on chance, regardless of any skill involved.
Furthermore, the memo argues, “It is difficult to see how an elector could honestly claim they ‘have not made any bet or wager’ if they have put money into a prediction market, as they would gain money if correct and lose money if incorrect.”
The Commission did not determine whether placing trades in election prediction markets is lawful. Instead, the focus was on the likelihood that individuals who engage in such trading would be barred from voting in the same election.
In response, operators of prediction markets have challenged the Commission's interpretation. A spokesperson for Kalshi noted, “Kalshi has hundreds of thousands of users in Wisconsin. Suggesting that they cannot vote because they use Kalshi is not only misleading but also constitutes voter suppression! If even a small number of our users in Wisconsin are deterred from voting due to this warning, it could have significant implications.”