Is Kalshi legal? › Illinois

Is Kalshi legal in Illinois?

Status as of September 25, 2026 · every line has its source and date · not legal advice

Status at a glance

Kalshi and Polymarket US are reported live in Illinois, including sports, under standstill agreements while a federal court considers injunction motions (KalshiEX v. Raoul; CFTC v. Illinois). The Gaming Board sent cease-and-desist letters to Kalshi (2025-04-01) and Polymarket US (2026-01-27), and SB 3019 (effective 2026-07-01) requires a state license for sports event contracts.

What the status rests on

• CBS Sports lists Illinois as 'Live*', saying sports prediction markets are live now but ongoing legal battles could change that; the asterisk marks states where trading may be limited while lawsuits run. Are sports prediction markets legal? Status of Kalshi and Polymarket in all 50 states (CBS Sports) (news), September 24, 2026
• The KalshiEX LLC v. Raoul docket shows no ruling on Kalshi's preliminary-injunction motion as of its latest recorded entry, a 2026-09-10 order on a motion to cite supplemental authority. KalshiEX LLC v. Raoul, No. 1:26-cv-07363 (N.D. Ill.), docket (CourtListener), September 10, 2026
• Illinois officials told the court that prediction markets offer Illinois residents event contracts on sports such as the 2026 World Cup, and that the state has standstill agreements with Kalshi, OG and Polymarket. Defendants' Combined Response in Opposition to the CFTC's, Kalshi's, and the Coalition's Motions for Preliminary Injunctions (N.D. Ill. Nos. 26 C 3659 and 26 C 7363, Doc. 39), July 17, 2026
• Illinois defendants agreed to keep refraining from enforcement against Kalshi under the Sports Wagering Act (including as amended by SB 3019) or state criminal gambling laws while Kalshi's preliminary-injunction motion is pending. June 29, 2026 Joint Status Report, KalshiEX LLC v. Raoul, No. 1:26-cv-07363 (N.D. Ill.), Doc. 23, June 29, 2026

What has happened in Illinois

Good to know

• SB 3019 adds a tax on sports wagers made on prediction markets (1.75% on the first 5 million wagers per fiscal year, 3.5% after) and lets licensees accept entries only from people physically in Illinois; Capitol News Illinois reports a $15 million initial license fee for four years. Prediction market Kalshi sues Illinois over its push to regulate sports bets (Capitol News Illinois) (news)
• SB 3019 is now Public Act 104-468, according to a footnote in the June 29, 2026 joint status report. June 29, 2026 Joint Status Report, KalshiEX LLC v. Raoul (N.D. Ill.), Doc. 23
• Executive Order 2026-04 bars Illinois state employees, officers, appointees and board members from using nonpublic information from their positions to take part in prediction markets or event-based contracts. Gov. Pritzker Issues Executive Order to Strengthen State Ethics Rules on Prediction Markets (Office of the Governor newsroom)
• House Bill 5811 (Rep. Travis Weaver) would remove the prediction-market tax and the 'exchange wager' definition; its sponsor expected it to be taken up in the veto session or in the session starting January 13, 2027. Illinois: Bill seeks to remove prediction market tax (CDC Gaming Reports) (news)
• SB 4168 (Prediction Markets Regulation), introduced 2026-03-05, stayed in committee; a third-party bill tracker lists it as dead as of 2026-06-01, and the official ilga.gov site could not be reached to confirm. IL SB4168 (BillTrack50, third-party bill tracker) (news)
• In the CFTC's Illinois case, the Coalition for Fair Markets and North American Derivatives Exchange (OG) joined as intervenors and tribal amici filed a brief on 2026-07-31; the docket shows no ruling on the injunction motions as of 2026-09-10, and no tribal lawsuit against Kalshi or Polymarket in Illinois was found. United States of America v. State of Illinois, No. 1:26-cv-03659 (N.D. Ill.), docket (CourtListener)
• A related case, Coinbase Financial Markets, Inc. v. Raoul (No. 1:25-cv-15406), is also before Judge Pacold. June 29, 2026 Joint Status Report, KalshiEX LLC v. Raoul (N.D. Ill.), Doc. 23

State regulator: Illinois Gaming Board. Regulates sports wagering in Illinois and sent the cease-and-desist letters to Kalshi (2025-04-01) and Polymarket US (2026-01-27).

The federal picture

Kalshi has been a CFTC-designated contract market since November 4, 2020 (CFTC release 8302-20). Whether states may still apply their gambling laws to sports event contracts is being decided in the courts, and the federal appeals courts do not agree yet:

• September 25, 2026: Pending appellate decisions that could change several states' status: Sixth Circuit (Kalshi v. Ohio, No. 26-3196, and Kalshi v. Tennessee, No. 26-5235; argued 2026-07-30), Fourth Circuit (Kalshi v. Maryland, No. 25-1892; argued 2026-05-07), Second Circuit (Kalshi's New York and Connecticut appeals, Nos. 26-1835 and 26-2239, heard in tandem), Seventh Circuit (CFTC and Kalshi appeals from the Wisconsin injunction denial, No. 26-2636 et al.), Tenth Circuit (Kalshi v. Utah, No. 26-4100). No decision in any of these appeared in the court records checked for this file (CourtListener; indexes can lag PACER by a few days). CourtListener dockets cited in the Ohio, Tennessee, Maryland, New York, Connecticut, Wisconsin and Utah entries
• September 16, 2026: Ninth Circuit (Blue Lake Rancheria v. Kalshi, Inc., No. 25-7504; Murguia, McKeown, Paez; opinion by Judge McKeown) affirmed in part and reversed in part the denial of two California tribes' preliminary-injunction motion, holding the tribes likely to succeed in showing Kalshi's sports event contracts entered from tribal lands are class III gaming offered in violation of IGRA and their gaming procedures; the case was remanded for the remaining injunction factors, so no injunction had issued as of the last docket entry checked. Blue Lake Rancheria v. Kalshi, Inc., No. 25-7504 (9th Cir. Sept. 16, 2026) - published opinion (PDF)
• September 9, 2026: Kalshi petitioned for panel rehearing and rehearing en banc of the Ninth Circuit's 2026-08-28 Nevada decision (KalshiEX, LLC v. Assad, No. 25-7516); Montana's 2026-09-17 enforcement pause is tied to the outcome of that request. KalshiEX, LLC v. Assad, No. 25-7516 (9th Cir.) docket, entry 206 (CourtListener); Joint Stipulation of Dismissal, KalshiEX LLC v. Knudsen (D. Mont.), Doc. 35
• September 8, 2026: Southern District of Iowa (KalshiEX LLC v. Bird, No. 4:26-cv-00109) denied Kalshi a preliminary injunction against Iowa's Attorney General and Racing and Gaming Commission, finding Kalshi unlikely to succeed on preemption; Kalshi appealed to the Eighth Circuit (No. 26-2874, docketed 2026-09-17), a fifth federal circuit now hearing the question. KalshiEX LLC v. Bird, No. 4:26-cv-00109 (S.D. Iowa), Order Denying Motion for Preliminary Injunction (Doc. 57)
• September 2, 2026: New Jersey petitioned the US Supreme Court for certiorari in Flaherty v. KalshiEX, LLC (No. 26-299, docketed 2026-09-08); Kalshi's response deadline was extended to 2026-11-09; an amicus brief was filed 2026-09-22 by the National Council of Legislators from Gaming States. Supreme Court docket No. 26-299

How sure is this page? Confidence: medium. Kalshi's status is backed by court filings (no enforcement while its motion is pending, no ruling as of 2026-09-10) and a 2026-09-24 news roundup, but Polymarket US access rests on indirect evidence and a ruling could change both quickly. Researched September 25, 2026; court cases can change the status at any time, so check Kalshi's app before you trade.

Related: every state · is Polymarket legal in Illinois? (Polymarket View) · Kalshi fee calculator · Kalshi taxes · Kalshi FAQ

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