Kalshi sues Illinois over new tax on prediction market sports bets

Prediction market Kalshi sued Illinois over new taxes and licensing requirements enacted under Senate Bill 3019 to support the state's $55.9 billion budget. The new law imposes a 1.75% tax on the first 5 million sports wagers annually on prediction markets and 3.5% thereafter, along with requiring Kalshi to obtain an Illinois sports betting license, both set to take effect July 1. Kalshi and federal regulators argue Illinois lacks jurisdiction and has violated the Supremacy Clause by asserting regulatory authority over prediction markets.

Source: Ars Technica | 2026-06-29