Is betting on elections using prediction markets illegal? Many states are unsure as midterms approach

Voters cast ballots at a polling location inside John Jay High School during early voting for a primary election in the Brooklyn borough of New York, US, on Sunday, June 21, 2026. Michael Nagle | Bloomberg | Getty ImagesWisconsin sent prediction market platforms spinning last month when its election commission released a directive reminding voters that betting on elections — including via trades on event contract exchanges — is illegal in the state, based on a more than 175-year-old law. What shocked people was the penalty that Wisconsin places on those who break its law: violators lose the right to vote in the election they bet on. Prediction market platform Kalshi blasted the law. "This is blatantly unconstitutional and illegal," Benjamin Freeman, head of politics growth at Kalshi, wrote in a post on X. Polymarket told the Milwaukee Journal Sentinel it looked forward to addressing the claims through the appropriate legal process. Wisconsin isn't alone. Twenty-three states have laws on the books that ban betting on elections, according to Pew Research Center. New York also doesn't allow voters to cast a ballot in an election that they've bet on, while in most of the other states v...