Kalshi has filed a lawsuit against Illinois officials challenging a new state tax that classifies prediction market sports bets as unlicensed gambling. This legal battle highlights the growing tension between states seeking to regulate and tax prediction markets and the federal framework governing them, especially as these platforms experience record usage during major sporting events.
Background
Prediction markets like Kalshi operate under different regulatory interpretations than traditional sportsbooks, leading to conflicts with states that view them as gambling venues. Illinois recently enacted specific taxes on these markets following record financial losses from traditional sports betting in 2025.
- Source
- Ars Technica
- Published
- Jun 30, 2026 at 01:48 AM
- Score
- 7.0 / 10