Kalshi, a prediction market, has sued the state of Illinois over its latest push to regulate sports bets on the platform. The company argues that the state’s regulations, which include a 1.75% tax on the first 5 million sports wagers per fiscal year, are unconstitutional and violate the Supremacy Clause.
Background
The lawsuit comes after the state enacted new sports wagering taxes to support its $55.9 billion budget. Illinois classifies Kalshi and other prediction markets as unlicensed sports wagering operators, but Kalshi disagrees with this characterization. The company is seeking to block the new requirements before it becomes subject to criminal penalties for failure to comply.
The Commodity Futures Trading Commission (CFTC) has also sued Illinois, arguing that the sports event contracts offered on prediction markets are more similar to grain futures than to sports wagers, giving it exclusive jurisdiction. Kalshi has asked for a temporary restraining order and preliminary injunction to prevent enforcement of the new law before it takes effect on July 1.
Original reporting: Block Club Chicago — read the source article.
