Prediction markets platform Kalshi has filed a lawsuit against Illinois state officials, arguing that new legislation requiring it to be licensed in the state to offer sports event contracts violates federal law.
The lawsuit targets Governor JB Pritzker, Attorney General Kwame Raoul, and other state gaming board officials. Kalshi claims the law — Illinois Senate Bill 3019, passed as part of the FY2027 budget package — “usurps” the authority of the US Commodity Futures Trading Commission (CFTC), which has exclusive jurisdiction over prediction markets.
The law, set to take effect July 1, amends the state’s definition of “exchange wager” to include prediction market contracts tied to sporting events. Kalshi argues that complying with it would force the company to violate CFTC uniformity requirements, while ignoring it would expose the firm to criminal penalties.
The bill also includes a 0.2% tax on crypto transactions and has drawn heavy criticism from the industry. Kalshi’s lawsuit is the latest in a series of jurisdictional battles between federal regulators and states over sports betting on prediction markets — fights that some legal experts believe will eventually reach the Supreme Court.
