Wisconsin state election officials have issued a warning that individuals who purchase contracts on prediction markets, such as Kalshi, regarding election outcomes may be disqualified from voting in those elections. Meagan Wolfe, administrator of the Wisconsin Elections Commission, stated that voters cannot legally bet on an election and cast a ballot in the same election. This prohibition is based on a statute from 1849, which states that anyone who has made a bet related to an election is not allowed to vote in that election. Violating this law could expose voters to felony charges if they knowingly vote while disqualified.
Other states also have laws against gambling on elections, but Wisconsin is the first to explicitly state that voters are banned from voting if they participate in prediction markets. New York has similar provisions in its constitution and state law, but the attorney general's office has not yet clarified how these laws apply to prediction markets like Kalshi and Polymarket.
The rise of prediction markets has reignited discussions about this old law, which had previously been overlooked. Experts suggest that while enforcement of the law may be challenging, it remains on the books. The law's constitutionality may also be questioned, as a section of the Wisconsin constitution that previously supported such restrictions was repealed in the 1980s. In New York, similar laws could lead to voter disenfranchisement if applied to prediction market participants, creating potential legal and electoral complications.