AI · Cointelegraph
Kalshi sues Illinois officials over prediction markets restrictions
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The prediction markets company claimed that it would be “irreparably harmed” when an Illinois law signed as part of a budget package goes in effect on July 1.
Key facts
- The Illinois law, passed as part of a state budget package for the fiscal year 2027, included a 0.2% tax on crypto transactions and has already been heavily criticized by many in the industry
- [.] Kalshi faces similar irreparable harms if it attempts to comply with SB 3019 by offering sports events contracts in compliance with Illinois’s costly and restrictive licensing and regulatory
- The CFTC, headed by Commissioner Michael Selig, has claimed exclusive authority over the companies under the Commodity Exchange Act, arguing that the platform’s event contracts are “swaps
- The prediction markets company claimed that it would be “irreparably harmed” when an Illinois law signed as part of a budget package goes in effect on July 1
Summary
Prediction markets company Kalshi has filed a lawsuit against state officials in Illinois over legislation it says “expressly bans sports event contracts” on its platform. In a Tuesday filing in the US District Court for the Northern District of Illinois, Kalshi alleged that Illinois Governor JB Pritzker, Attorney General Kwame Raoul, and other officials on the state’s gaming board “usurped” the authority of the US Commodity Futures Trading Commission (CFTC) over prediction markets. Specifically, the company alleged that legislation signed into law last week in Illinois, requiring prediction market platforms to be licensed in the state to offer sports event contracts, violated federal law.