Federal judge blocks Illinois prediction-market rules in Kalshi cases
US District Judge Martha Pacold granted preliminary injunctions blocking Illinois from enforcing several rules against prediction-market platforms, finding that sports event contracts likely qualify as swaps under federal law. The ruling leaves the proposed state transaction tax unresolved, and the parties must submit a proposed injunction by 29 October.
The injunction limits Illinois’ ability to apply gambling restrictions to covered prediction-market contracts while the cases continue.