Illinois Social Media and Prediction Market Taxes Bring Lawsuits

Federal judge sides with Kalshi, block new Illinois rules on prediction markets

<p>A judge has blocked Illinois from regulating prediction markets in the same way it does sportsbooks and other gambling options, ruling that the trades offered by the likes of Kalshi and Polymarket fall under the sole jurisdiction of federal regulators even if their offerings resemble casino-style betting.</p><p>But the injunction handed down Friday in Chicago’s federal district court by Judge Martha Pacold doesn’t shut the door on potential s…

Illinois social media and prediction market taxes bring lawsuits

Proposed taxes are bringing new lawsuits, and Illinois Republicans are calling on the Gov. Pritzker to hold off in their implementation. Senate Bill 3019 enacts new taxes and fees on social media platforms and prediction markets. A top concern is whether the taxes are legal and if the state is setting itself up to lose [...]

Why A Federal Judge Sided With Kalshi

A federal judge in Illinois ruled on October 2nd that the state cannot apply its sports-wagering licensing requirements, or the criminal penalties attached to them, to event contracts listed on Kalshi. The decision is a clear win for consumers who use prediction markets and for the principled argument that federally regulated products should be governed […]

Federal judge sides with Kalshi to block new Illinois regulations on prediction markets

A judge has blocked Illinois from regulating prediction markets like it does sportsbooks and other gambling options, ruling that the trades offered by the likes of Kalshi and Polymarket fall …

Federal court grants CFTC, Kalshi preliminary injunctions against Illinois

Court wins for prediction markets against state regulators have been rare in 2026, but an Illinois federal judge sided with the Commodity Futures Trading Commission (CFTC) and two of its registrants on Friday. U.S. District Judge Martha Pacold wrote in a memorandum and order on Oct. 2 that three parties filed similar requests for preliminary […]

Illinois Hands Kalshi, Coinbase, and CFTC Win in Federal Court

The U.S. District Court for the Northern District of Illinois Eastern Division granted motions from Kalshi, Coinbase, and the Commodity Futures Trading Commission for a preliminary injunction against the state to prohibit Illinois from enforcing its gaming laws against prediction markets. Judge Martha M. Pacold granted the motion on Friday, Oct. 2, creating an intra-circuit … Continued