The prediction market company Kalshi has criticized a Wisconsin law barring voters from betting on elections they participate in, labeling the rule a form of voter suppression.
Wisconsin election officials recently issued an advisory reminding voters that betting on an election in which they cast a ballot could disqualify their vote or lead to prosecution. The guidance is based on a state law originally passed in 1849.
Kalshi's politics lead Benjamin Freeman called the advisory "blatantly unconstitutional and illegal" and described it as "INSANE" and "dystopian." Company executives labeled the interpretation "bananas," while a spokeswoman said none of the hypothetical scenarios raised by critics would allow improper trading.
Ann Jacobs, a commissioner with the Wisconsin Elections Commission, said the advisory simply restated existing law and aimed to prevent voters from having a financial stake in outcomes. Experts including Matt Barreto of the UCLA Voting Rights Project and Charles Stewart of MIT noted concerns over election integrity, insider information, and potential foreign influence.
Election betting remains illegal in 32 states. Kalshi and state regulators continue legal disputes over whether the activity falls under federal or state oversight.
