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Illinois judge blocks state gambling rules against Kalshi during court case

Regulation

A federal judge in Illinois ruled on 2 October that the state cannot enforce several gambling laws against Kalshi while the case proceeds, according to press reports. The judge found Kalshi’s contracts are likely swaps under federal law and that state licensing rules are likely pre-empted, but deferred a decision on fees. The ruling is not final.

The order temporarily limits Illinois enforcement against Kalshi while the court considers the reach of state rules over prediction markets.

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Regulation

New York judge questions CFTC bid to block state action against prediction markets

US District Judge Lorna G. Schofield questioned the CFTC's prospects of securing a preliminary injunction to prevent New York from enforcing gambling laws against event-contract platforms. At a 14 September hearing, the agency argued that the contracts fall under its exclusive authority; New York, the American Gaming Association and 44 state attorneys general oppose that position. Federal appeals courts have issued conflicting rulings, and the Supreme Court has been asked to resolve the dispute.

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