Kalshi sues Illinois officials over prediction markets restrictions
Kalshi sued Illinois officials, arguing a new state law unlawfully blocks its sports event contracts on prediction markets. The complaint says Illinois SB 3019, which takes effect July 1, exceeds state authority because federal law gives the CFTC exclusive oversight of prediction markets and related “swaps.” Kalshi says stopping Illinois users would conflict with CFTC uniformity rules, while complying with Illinois licensing demands would be costly and still expose it to enforcement risk. The law amends Illinois gambling definitions to treat prediction market contracts tied to sporting events like sports betting. The case is part of a broader federal-versus-state fight over who regulates prediction markets, a dispute that could reach the Supreme Court.
