Kalshi Challenges Illinois Law Over Federal Conflict in Prediction Markets

Kalshi, a prediction market platform, has filed a lawsuit against Illinois state officials over a new law that requires sports prediction platforms to obtain a state license and imposes a 0.2% Privilege Tax on cryptocurrency transactions.

The law, Senate Bill 3019, is set to take effect on July 1, but Kalshi argues that it conflicts with federal law and the authority of the U.S. Commodity Futures Trading Commission (CFTC).

Kalshi claims that if the law takes effect, it would suffer irreparable harm, including operational disruptions and financial losses.

The lawsuit targets Illinois Governor JB Pritzker, Attorney General Kwame Raoul, and members of the state's gaming commission.