Prediction Market Kalshi Sues Illinois Over Its Push To Regulate Sports Bets

Prediction market Kalshi sued Illinois over new taxes and licensing requirements for sports bets, arguing the state's classification of its platform as unlicensed sports wagering violates federal jurisdiction. Illinois amended its Sports Wagering Act to impose 1.75% and 3.5% taxes on Kalshi's wagers, effective July 1, and requires a costly license. Kalshi claims compliance would conflict with federal Commodity Futures Trading Commission (CFTC) regulations.