States / Illinois
Legal status · as of Oct 15, 2026
Are prediction markets legal in Illinois?
In court
Illinois sent cease-and-desist letters in 2025 and in June 2026 enacted a tax on exchange wagers on sporting events. On Oct. 2, 2026 a federal judge partially enjoined Illinois's licensing enforcement in suits by the CFTC, Kalshi and Coinbase, leaving the tax question open.
State actions
Regulator orders, lawsuits, rulings and laws, newest first.
| Date | Action | What happened | Sources |
|---|---|---|---|
| Oct 2, 2026 | Other | Judge Martha Pacold (N.D. Ill.) partially enjoins Illinois licensing and criminal enforcement against sports event contracts; ruling on the exchange-wager tax reserved; proposed injunction terms due Oct. 29. (Kalshi, Coinbase) | DeFi Rate: Kalshi, Coinbase win partial injunctions against Illinois · Crypto Briefing: partial ruling on Illinois sports contracts |
| Sep 8, 2026 | Bill | A state lawmaker proposes repealing the prediction-market tax. | Covers |
| Jun 24, 2026 | Lawsuit | Kalshi sues Illinois over licensing and tax requirements. (Kalshi) | Covers timeline |
| Jun 19, 2026 | Lawsuit | CFTC amends its Illinois complaint to challenge the new tax. | Covers timeline |
| Jun 18, 2026 | Law | Gov. Pritzker signs FY2027 budget with a tax on exchange wagers on sporting events (1.75% on the first $5M, 3.5% after), effective July 1, 2026. | Covers |
| Apr 2, 2026 | Lawsuit | CFTC sues Illinois. | CFTC Release 9206-26 primary |
| Apr 1, 2025 | Cease and desist | Illinois Gaming Board cease-and-desist letters. (Kalshi, Robinhood, Crypto.com) | IGB letter to Kalshi primary |
Cases involving Illinois
Select a case for its full history and sources, or see the legal tracker.
| Case | Status | Last action | Sources |
|---|---|---|---|
| CFTC v. Illinois U.S. District Court for the Northern District of Illinois | PI granted in part (licensing); fee challenge reserved | Oct 2, 2026 Preliminary injunction granted in part (licensing and criminal provisions enjoined; fee issue reserved). | CFTC press release 9206-26 (suits vs. AZ, CT, IL) primary · Cert petition (PDF), No. 26-338 primary · Cert petition (PDF), No. 26-299 primary · Tracker: DeFi Rate prediction-market legal tracker · DeFi Rate: Kalshi, Coinbase win partial injunctions against Illinois · Crypto Briefing: partial ruling on Illinois sports contracts · CasinoBeats (Oct. 5, 2026) |
Prediction markets in Illinois: questions
Are prediction markets legal in Illinois?
In court. Illinois sent cease-and-desist letters in 2025 and in June 2026 enacted a tax on exchange wagers on sporting events. On Oct. 2, 2026 a federal judge partially enjoined Illinois's licensing enforcement in suits by the CFTC, Kalshi and Coinbase, leaving the tax question open. Exchanges registered with the CFTC, including Kalshi, say federal law lets them offer event contracts in every state; that question is being fought in court. This summarizes public actions and is not legal advice.
What is the latest prediction market action in Illinois?
Oct 2, 2026: Judge Martha Pacold (N.D. Ill.) partially enjoins Illinois licensing and criminal enforcement against sports event contracts; ruling on the exchange-wager tax reserved; proposed injunction terms due Oct. 29.
Is there a lawsuit over prediction markets in Illinois?
Yes. CFTC v. Illinois (U.S. District Court for the Northern District of Illinois): PI granted in part (licensing); fee challenge reserved.
This page reports court, regulator and legislative actions with links to the filings and coverage. It is not legal advice. The tracker is re-checked every Monday and Thursday. All states · Legal tracker