By SectorWire desk ·
Illinois Representative Travis Weaver is seeking to repeal the state's recently introduced sports prediction market tax. The proposal would remove a 1.75%-to-3.5% transaction tax that Kalshi and the CFTC have challenged.
The Illinois repeal proposal would remove the sports prediction market transaction tax challenged by Kalshi and the CFTC.
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The bill seeks to remove Illinois’s prediction market tax, whose application Kalshi and the CFTC challenged in court.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The outcome could determine whether prediction market operators can continue serving the US market under federal or state rules.
Kalshi’s proposed rule would allow financial penalties, suspension or account deactivation for users harassing athletes or third parties over trading.
Nevada has no fallback plan if the Supreme Court sides with prediction market operators, leaving its stance uncertain.