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Illinois argues Coinbase sports contracts fall under state gambling law

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Illinois argued in a federal court filing that Coinbase’s sports event contracts resemble wagers and fall under state gambling law, disputing the company’s position that they belong under CFTC oversight. Coinbase is seeking a ruling preventing Illinois, Michigan and Connecticut from treating the contracts as illegal gambling; if Illinois prevails, platforms serving its residents would need Illinois Gaming Board approval.

The dispute could determine whether sports event-contract platforms serving Illinois need state gambling approval and compliance controls.

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Judge blocks Illinois restrictions on Kalshi sports contracts

US District Judge Martha Pacold granted Kalshi a partial preliminary injunction blocking Illinois from enforcing new restrictions on its sports event contracts. The judge found the contracts likely qualify as swaps under federal commodities law, but left a separate state transaction fee outside the injunction because the evidence did not establish its effect on federal law.

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