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Good afternoon, everybody.

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Thanks for joining. I'm attorney

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general Josh call, and I'm

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here today to announce that the

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Wisconsin Department of Justice

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today has filed lawsuits

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against multiple companies and

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their affiliates, alleging that they

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have been facilitating illegal

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sports betting in Wisconsin.

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The defendants in these cases

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include Kelsche, Robin

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Hood, Coinbase,

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Polymarket, Crypto.com,

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as well as affiliates

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of those companies.

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Now, except in limited

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circumstances, sports betting

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and other forms of commercial

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gambling have long been illegal

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in the state of Wisconsin.

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No company is above this

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law, no matter how

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creatively those companies try to

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disguise the activity that they're

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engaged in.

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As we allege in these lawsuits,

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these companies have chosen to flout

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Wisconsin law by this

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thinly disguising the

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sports betting that they facilitate

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through what are called event

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contracts.

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But our position in this case is

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that event contracts are no

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different than ordinary sports bets.

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The companies collect a fee, we

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allege, for every bet that's

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made, leading them to earn

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significant revenue from

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Wisconsinites through violations

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of our state's gambling regulations.

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So we are asking the court in this

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to declare that making

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sports-related events contracts

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available for trading by customers

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in Wisconsin is a violation

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of Wisconsin statutes.

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But these companies have repeatedly

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and openly violated those laws,

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and we're asking for the sports

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betting that we allege is going on

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and illegal to be shut down.

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So that happy to answer any

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questions folks have about

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these new cases.

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Good afternoon, everyone.

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We will now take on topic questions

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from media members.

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If you have a question, please raise

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your hand and I will call on you in

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the order in which you ask your

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question.

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Once we call on, you we will promote

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you to panelists that you may speak.

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This may take a second.

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As a reminder, if you're on your

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phone, you can press star nine to

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raise or lower your hand and star

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six to mute or unmute yourself once

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you're called on.

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The first question will go to

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Eric Gunn.

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Thank you very much.

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Is this just a Wisconsin case,

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or is it a multi

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state?

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Are you with a number of other

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states that are filing

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also against these defendants?

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This is a Wisconsin...

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Specific case, though I would note,

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Eric, there are similar cases

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in a number of other states.

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Next question goes to Matt Smith.

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Attorney General, thank you.

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Is this related at

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all to the governor signing

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the online forward-spinning bell.

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Relationship between the two what we

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are alleging is violations

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of Wisconsin law and the

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allegations would be the same

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whether or not there had been

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the new legislation passed the

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only connection is that they they

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relate to this same topic which is

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online sports betting

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Next question goes to Kate Morton.

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Hi, um, quick question.

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I was also wanting to ask about this

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new law that Governor Evers signed.

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Um, how, if at all, this could

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play into that.

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And also wouldn't this just,

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you know, strengthen the tribe's

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role in online gaming, if

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and when these gaming compacts are

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revised in the state?

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Yeah, the new law won't have bearing

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on what's alleged in this suit

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because that the new

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loss specifically relates to

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gaming that is conducted through

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facilities that are on tribal

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lands in Wisconsin.

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That's not the case in

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in these cases.

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And so the allegations here

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are unimpacted by that new

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legislation.

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Next question goes to Todd Richmond.

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Hi, two questions.

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Can we get copies of these lawsuits

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ASAP and also

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what other states have sued

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and similar

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to this?

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Yeah, so 1st, in terms of the

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copies, we, if we haven't

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already sent out a release, we will

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be shortly that will

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include a copy of the complaints.

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So, if anybody needs that

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and doesn't receive that, please

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feel free to contact our office.

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We'll, we'll get that to you in

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terms. Of the states.

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There are a handful

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of states where there were lawsuits

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that have been brought New York

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state just recently filed 1,

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and we can get you a more

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comprehensive list.

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Todd, if that's helpful.

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There are also a number of states

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where.

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Companies that are alleged to have

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engaged in this activity have

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themselves preemptively

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filed suits to

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try to prevent the states from

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bringing enforcement actions.

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Next question goes to Kimberly.

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Yeah, what is

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your message to people who use

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these apps who may be

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impacted by this lawsuit?

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Our focus in this case is on the

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large companies that

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are operating these.

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As I mentioned, the defendants here

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are Kelchee, Robinhood,

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Coinbase, Polymarket,

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Crypto.com, and their affiliates.

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And so we are taking action to

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uphold Wisconsin law and

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ultimately seeking to

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shut down the sports

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gambling operations that we allege

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that those companies are engaging in

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in Wisconsin.

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Next question goes to Jason.

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Mr. Attorney General, thank you so

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much for your time.

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Do you know how much money these

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companies have made on Wisconsin

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bets?

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We don't have Wisconsin specific

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information in the complaint.

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We make reference to reporting

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that indicated that calcium,

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for example, made about 1.3

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billion dollars in a year.

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That's that's not Wisconsin

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specific, but we do know

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is that, you know, and frankly, if

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you watch television commercials

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during a significant sporting event,

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you can see this.

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There's been widespread

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promotion of this activity

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and just simply

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going online. You can see.

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How an alleged sports event

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could be placed.

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Next question goes to Jesse.

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Hi, thank you.

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That's sort of technical question.

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When you refer to event contracts,

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is that interchangeable with

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prediction markets or is it a

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subset of that activity?

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The platforms where this

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is taking place are known as

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prediction markets.

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And what we allege is that the way

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these companies have framed this is

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that you can, on those prediction

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markets, purchase what they

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call an event contract.

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And what allege here is that

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the event contracts on sporting

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events are indistinguishable

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legally or practically for that

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matter from sports betting and

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constitute sports betting under

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Wisconsin law.

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Next question goes to Todd.

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Yeah, I know that

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you said there is no relationship

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between the bill the governor signed

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and these lawsuits, but the timing

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is just blatant.

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I'm wondering,

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did the tribes request

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that these lawsuits be filed or is

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this a precursor to some

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kind of the new compact negotiations

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that the state must shut

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these operations down at bequest

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of the tribes?

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Yeah, I guess a couple of things

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I'll say, Todd. So first,

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in terms of your question about the

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timing, I mean, one thing that I

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think is clear is that there

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has been a huge increase

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in this type of activity

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that we allege is occurring in

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recent years, and that has had a

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number of consequences.

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And I certainly think that that may

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very well be linked to the fact that

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there was legislative activity

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on this topic recently.

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Just as there has been litigation

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activity.

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But Wisconsin is not unique

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in bringing

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litigation activity on this topic,

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like I mentioned.

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As I indicated, New York,

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for example, just recently filed

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suit and there are suits in other

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states as well.

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Ultimately, in this case, the

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decision that we make,

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I'm certainly aware that there

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are folks out there who want to see

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these laws enforced, but the

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decisions that we make are based on

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the facts and the law, and that's

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why. Drove our decision to file

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this suit.

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These suits, I should say.

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Next question goes to Molly.

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Hey, I was wondering if

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you're seeking monetary damages and

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if not, why not?

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Our primary focus right now is on

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shutting down the activity that

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we allege is unlawful sports

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betting that's being facilitated by

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these defendants.

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Now, as the case moves forward,

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we are foreclosing

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what we may do, but if

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we think that there is an adequate

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legal basis to seek

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some sort of relief and that the

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facts support that,

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we're not foreclosen that, but right

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now our primary focus is on

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shutting down the activity that we

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allege is

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illegal sports betting.

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The next question will go to Jason,

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and this will be our last call for

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questions. So if anyone else has a

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question, please raise your hand

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after Jason and we'll call on

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you. Jason, you're next.

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Does this complaint apply

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to just sports or

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does it also apply to wagers placed

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on world events like the war in Iran

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and politics like who's going to be

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the next president?

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The focus of these complaints is

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sports betting specifically.

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We allege that that's a

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very large percentage in the case of

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calcium, for example, of

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what takes place on their

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prediction market platform.

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So, the focus of this is

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specifically on sports

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alleged sports beds.

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Next question goes to Sarah.

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Hi, the Trump administration

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recently issued an order

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reclassifying medical

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marijuana as well as

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FDA approved products that contain

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marijuana and that's

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medical marijuana in states that

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license it.

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Will this order have any effect on

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Wisconsin and if so, what

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and do you have any thoughts on what

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this order might signal going

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forward?

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Yeah, I saw the reporting that there

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has been this reclassification.

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I have not yet had a chance to

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analyze what the Trump

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administration has said.

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Of course, in Wisconsin,

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currently marijuana is

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criminalized.

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And so where I think there

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may be an impact is if the laws in

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Wisconsin change, then we would

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need to see how this federal update

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applies with respect to

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those changes of Wisconsin law.

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All right, thank you.

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We do not see any other hands

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raised, so we are going to conclude

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today's press conference.

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Thank you all for joining.

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If you have any further questions,

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please don't hesitate to reach out

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to the DOJ communications team

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00:11:57,920 --> 00:12:02,959
at
DOJcommunicationsatdoj.state.wi.us.

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Thank you.

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Thanks everyone.