Kalshi sues Illinois and its governor, opposing prediction market regulatory bill

Odaily Odaily Planet Daily reported that Kalshi filed a lawsuit this week in the U.S. District Court for the Northern District of Illinois against Illinois Attorney General Kwame Raoul, Governor JB Pritzker, and other state officials.

Kalshi stated that the state's budget bill, SB3019, requires prediction market platforms to obtain a state-level license and will take effect on July 1, conflicting with the federal exclusive jurisdiction clause of the Commodity Exchange Act, putting the company in a position where it could violate either federal or state law. Kalshi claims that if it stops offering sports event contracts in Illinois to comply with the bill, it would violate the uniformity requirements of the U.S. Commodity Futures Trading Commission and harm its business interests. Kalshi has requested the court to issue a temporary restraining order, a preliminary injunction, and a permanent injunction to prevent Illinois from enforcing the law. (The Block)