A lawsuit against a new Illinois law taxing prediction markets has been filed in federal court, presenting a challenge that state lawmakers expected before they passed the measure.
Kalshi, a company with a prediction-based platform that allows users to place wagers on the outcome of real-life events, seeks to block the state law from taking effect Wednesday.
The company argued the federal government’s Commodity Futures Trading Commission is their sole regulator, which the CFTC also argued in a lawsuit against the state earlier this year.
The new measure imposes the same regulatory, tax and licensing requirements on prediction markets as are placed on sports betting platforms.
State Sen. Michael Hastings, who introduced a similar measure this year, said in a hearing in April nearly 90% of all sports betting is done on prediction markets, according to his findings.
Kalshi wants an injunction to stop the law from taking effect until a federal judge hears arguments and gives a ruling on if the state law is legal.
Story from Illinois Radio Network
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