KalshiEX LLC v. Raoul

Overview

Kalshi’s own affirmative challenge to Illinois, distinct from the federal government’s suit against the state. It targets SB 3019, which folded prediction markets into the Sports Wagering Act and added an operating tax — signed June 16, 2026, with the prediction-market provisions effective July 1. Kalshi pleads Supremacy Clause preemption: because the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event contracts traded on a designated contract market, Illinois cannot require a state gambling licence.

What makes this different in kind from the other pre-emptive suits is the tax claim: most challenge a licensing or enforcement regime, while Illinois also sought revenue. Kalshi moved for an emergency TRO and preliminary injunction on June 25, 2026; the hearing was stricken on a joint status report, briefing completed in July, and the Executive Committee reassigned the case to Judge Pacold as related to the federal suit. No ruling has issued.

Timeline

What's next: The emergency TRO and preliminary-injunction motion is fully briefed and undecided before Judge Pacold, who also has the federal government’s parallel suit against Illinois.

Parties