Illinois sports betting wagering fell 3% in January 2026 to $1.43bn, according to the report. The source does not provide further details on the figures.
The reported decline gives operators and investors an indicator of Illinois betting activity for January.
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It was reported that an Illinois federal judge found Kalshi's sports event contracts likely qualify as swaps late the previous week. The outlet also reported that Ohio regulators had launched a separate enforcement push against prediction markets.
A federal judge in Illinois has found that sports event contracts offered by Kalshi are likely swaps under the Commodity Exchange Act (CEA), and that several Illinois laws regulating those contracts are likely preempted by federal law. U.S. District Judge Martha Pacold granted the plaintiffs' preliminary injunction requests in part, according to the ruling. The plaintiffs were Kalshi, Coinbase and the CFTC, acting against state regulators.
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.
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.
Illinois lawmakers approved a $55.9bn fiscal 2027 budget that introduces taxes on fantasy sports operators and prediction-market sports betting. The plan establishes a fantasy sports licensing framework and a 15% industry tax; lawmakers said fantasy sports and digital asset taxes are expected to raise about $65m.