Kalshi Sues Illinois Over Prediction Market Licensing Law Set to Take Effect July 1

According to a complaint filed this week in U.S. District Court, Kalshi is suing Illinois Attorney General Kwame Raoul, Governor JB Pritzker, and other state officials over a new law putting prediction market platforms under state regulation. The platform says it will face "irreparable harm" when the law, signed into law last week as SB3019, takes effect on July 1.

SB3019 requires prediction market platforms to obtain a state license and imposes a 0.2% charge on digital asset transactions. Kalshi argues the law violates federal authority, stating it conflicts with the Commodity Futures Trading Commission's exclusive jurisdiction over prediction markets. The CFTC has sued nine states, including Illinois, asserting it has sole regulatory authority. Kalshi, already registered as a federally regulated designated contract market, asked the court for injunctions to block enforcement of the state law.