Illinois lawmakers approved a $56bn state budget after an overnight session during the final hours of the spring legislative session. The available text does not specify the taxes affecting digital and gaming sectors.
The budget includes new taxes on digital and gaming sectors, but the available report does not detail their scope.
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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.
It was reported that Illinois enacted Senate Bill 3019, adding a prediction-market transaction tax and increasing sports betting taxes. The first five million trades will attract a 1.75% tax.
Kalshi filed suit against Illinois, seeking to block taxes and licensing requirements that would treat the company as a sports betting operator from 1 July, according to the report. The company argues its event contracts fall under exclusive CFTC oversight, while Illinois authorities contend the products are sports betting. Illinois Attorney General Kwame Raoul’s office said it was reviewing the complaint.
Kalshi filed a federal lawsuit against Illinois officials challenging a state law that imposes a 15% tax on sports-related prediction markets, according to the available report snippet.
Illinois lawmakers passed the FY2027 budget, which taxes sports-event prediction market transactions at 1.75%, rising to 3.5% after a licensee exceeds five million wagers in a fiscal year, according to the report. The budget also establishes licensing and taxation rules for daily fantasy sports under the Illinois Gaming Board. The tax comes amid a jurisdictional dispute with the CFTC, which sued Illinois in April.