Wisconsin warns traders of election contracts that they may lose eligibility to vote in the same election, Kalshi says this suppresses voters.

According to Odaily, the Wisconsin Elections Commission stated that residents who purchase contracts related to a particular election on Kalshi or Polymarket could lose their eligibility to vote in that same election. The commission noted that knowingly voting without eligibility could constitute a Class I felony.

On July 9, the commission unanimously approved a legal memorandum regarding prediction markets and issued a statewide notification on Tuesday. The relevant restrictions apply only to the specific election in question and do not automatically affect a trader’s eligibility to vote in other unrelated elections.

Benjamin Freeman, head of the Kalshi elections division, stated that this guidance is “clearly unconstitutional and illegal,” adding that the company has hundreds of thousands of users in Wisconsin alone. Robert DeNault, Kalshi’s Head of Enforcement and Legal Counsel, said that election markets certified by the CFTC and offered on federally regulated exchanges are legal.

A Polymarket spokesperson said the company will respond to the commission’s statements through appropriate legal procedures. Both companies assert that their products constitute tradable financial contracts, not gambling.