The Wisconsin Elections Commission warned voters that betting on elections on prediction markets could make them ineligible to vote, in an announcement that Kalshi employees categorized as a “scare tactic” that they argue is based on unenforceable law.
On Tuesday, the Wisconsin Elections Commission issued a press release warning residents that betting on elections on prediction markets “could cost you your vote.”
As the commission pointed out, Wisconsin Statute § 6.03(2) — which dates back to 1849 — says, “No person shall be allowed to vote in any election in which the person has made or become interested, directly or indirectly, in any bet or wager depending upon the result of the election.”
Wisconsin Statute § 12.13(1)(a) then makes it a felony for anyone who is not qualified to vote in an election to do so.
“We want voters to understand that they cannot legally make a bet on an election and cast a ballot in that same election,” WEC Administrator Meagan Wolfe said.
It seems unlikely that the state would be able to fully enforce the law if it wanted to, as it would not have access to data on which Wisconsin residents had placed bets on elections on prediction markets. Wolfe appeared to acknowledge this, but also warned that there could be “consequences” for betting on elections.
“We are not able to police someone placing a bet on these platforms, but it’s important for voters to understand the consequences if they bet on an election outcome,” she said.
Kalshi employees were highly critical of the release on social media. In a post on social media site X, the prediction market’s general counsel Rick Heaslip argued that the law was invalid and would never be enforced, but that the state was promoting it anyway as a “scare tactic.”
Kalshi has generally argued that state gambling laws are preempted by the federal Commodity Exchange Act. It is not clear whether these election laws could be preempted too. The fact that the statutes simply ban bettors from voting — which is generally regulated by states — rather than banning election bets entirely may help the states. However, there are also federal constraints on states’ voter eligibility laws.
