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Kalshi sues to block new Illinois tax on prediction markets A phone displays crypto prices on the Kalshi app. Illinois lawmakers are trying to tax prediction markets. Jenny Kane/AP Share The prediction market behemoth Kalshi filed suit this week to block a new Illinois tax on financial exchanges like theirs that state gambling regulators have decried as illegal sports betting. Kalshi’s federal lawsuit, filed in Chicago, seeks an injunction against the transaction taxes ranging from 1.75% to 3.5% that state lawmakers voted to slap on every “exchange wager” beginning next month on the prediction markets that have exploded in popularity over the past few years. But Kalshi — and the Trump administration’s Commodity Futures Trading Commission — maintain that the “event contracts” traded on their markets don’t constitute gambling and can only be regulated by the federal government. The CFTC asserted its position as the sole arbiter on prediction market regulation earlier this year when it sued to block state-level regulation efforts in Illinois as well as Arizona and Connecticut. New Jersey is also among the states grappling with how to handle the booming world of prediction marke…

Prediction Market Kalshi Sues Illinois Over Its Push To Regulate Sports Bets CHICAGO — Prediction market Kalshi — which offers trades on everything from the World Cup top goalscorers to the winners of the reality show Love Island and the 2028 Democratic primary — sued Illinois on Tuesday over its latest push to regulate sports bets on the platform. The most recent move in the ongoing legal battle between the state and prediction market operators came after the state enacted new sports wagering taxes to support the $55.9 billion budget it passed this spring. Illinois classifies Kalshi and other prediction markets as unlicensed sports wagering operators offering the same bets as sportsbooks like DraftKings and FanDuel, but without paying taxes or adhering to reporting standards. Kalshi disagrees with the state’s characterization and is seeking to block the new requirements before the company becomes subject to criminal penalties for failure to comply when the law takes effect July 1. “This action challenges the State of Illinois’s clear violation of the Supremacy Clause with respect to the regulation of event contracts,” Kalshi wrote in its complaint, arguing that the “event contrac…

Kalshi sues Illinois over new tax on prediction market sports bets Illinois now a key battleground in fight over prediction market sports bets.

Prediction market Kalshi sues Illinois over its push to regulate sports bets Prediction market Kalshi sues Illinois over its push to regulate sports bets Suit seeks to block new taxes and licensing requirements set for July 1. By Maggie Dougherty Capitol News Illinois June 28, 2026 11:03 am Facebook X More LinkedIn Email SMS Shutterstock Hartford, Connecticut - February 1, 2025: Fans place bets at a Fanatics Sportsbook at the XL Center in the Connecticut state capital city of Hartford. Chicago, IL ( CAPITOL NEWS ILLINOIS ) – Prediction market Kalshi — which offers trades on everything from the World Cup top goalscorers to the winners of the reality show Love Island and the 2028 Democratic primary — sued Illinois on Tuesday over its latest push to regulate sports bets on the platform. The most recent move in the ongoing legal battle between the state and prediction market operators came after the state enacted new sports wagering taxes to support the $55.9 billion budget it passed this spring. Illinois classifies Kalshi and other prediction markets as unlicensed sports wagering operators offering the same bets as sportsbooks like DraftKings and FanDuel, but without paying taxes or …

Kalshi sues Illinois over new tax on prediction markets “Illinois apparently deems itself unencumbered by the supremacy clause,” the prediction market claims in a federal lawsuit. (CN) — Prediction market Kalshi is suing Illinois officials in federal court to challenge a new state law that would impose a tax on sports-related wagers on its platform. Thelawsuit, filed late Tuesday evening, comes on the heels of a new law signed by Illinois Governor JB Pritzker last week. Part of the state’s $56 billion budget, the law creates a statewide tax on cryptocurrency transactions and establishes a “Sports Wagering Fund” made up of a 15% tax on gross receipts from sports prediction markets. Kalshi says in its 31-page complaint filed in the U.S. District Court for the Northern District of Illinois that this 15% tax is an affront to the supremacy clause. President Donald Trump and his administration have argued sports-related predictions are swaps federally overseen by the Commodity Futures Trading Commission, while Illinois and other states have attempted to classify them as sports bets in their attempts to regulate them at the state level. The issue has prompted back-and-forth litigatio…

Kalshi sues Illinois over new tax on prediction market sports ... Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav A fight between states and the federal government over who should regulate sports betting is heating up, as states accuse prediction markets like Kalshi of taking the exact same sports bets as gambling platforms without paying taxes or adhering to stricter controls. Last Tuesday, Kalshi sued Illinois Attorney General Kwame Raoul, Governor J.B. Pritzker, and other officials after the state classified Kalshi and other prediction markets as unlicensed sports wagering operators. It’s not the first legal battle between a prediction market and a state, but it is perhaps the most urgent for Kalshi, which is the biggest prediction market for sports bets. Across the board, prediction markets just had their biggest week ever , amid major sporting events like the NBA Finals, the World Cup, and the Stanley Cup. If the law stands, Kalshi would owe taxes no other state is charging and could face felony charges if violations are found. For Illinois, regulating prediction markets has f…

Prediction market Kalshi sues Illinois over its push to regulate sports bets Share Add Us On Google Add as a preferred source on Google CHICAGO, Ill. (CNI) - Prediction market Kalshi — which offers trades on everything from the World Cup top goalscorers to the winners of the reality show Love Island and the 2028 Democratic primary — sued Illinois on Tuesday over its latest push to regulate sports bets on the platform. The most recent move in the ongoing legal battle between the state and prediction market operators came after the state enacted new sports wagering taxes to support the $55.9 billion budget it passed this spring. Illinois classifies Kalshi and other prediction markets as unlicensed sports wagering operators offering the same bets as sportsbooks like DraftKings and FanDuel, but without paying taxes or adhering to reporting standards. Kalshi disagrees with the state’s characterization and is seeking to block the new requirements before the company becomes subject to criminal penalties for failure to comply when the law takes effect July 1. “This action challenges the State of Illinois’s clear violation of the Supremacy Clause with respect to the regulation of event con…

Prediction market Kalshi sues Illinois over its push to regulate sports bets Sports bar casino betting. (Amit Lahav on Unsplash.com) This summary was written by the reporters and editors who worked on this story. CHICAGO — Prediction market Kalshi — which offers trades on everything from the World Cup top goalscorers to the winners of the reality show Love Island and the 2028 Democratic primary — sued Illinois on Tuesday over its latest push to regulate sports bets on the platform. The most recent move in the ongoing legal battle between the state and prediction market operators came after the state enacted new sports wagering taxes to support the$55.9 billion budgetit passed this spring. Illinois classifies Kalshi and other prediction markets asunlicensed sports wagering operatorsoffering the same bets as sportsbooks like DraftKings and FanDuel, but without paying taxes or adhering to reporting standards. Kalshi disagrees with the state’s characterization and is seeking to block the new requirements before the company becomes subject to criminal penalties for failure to comply when the law takes effect July 1. “This action challenges the State of Illinois’s clear violation …