Illinois budget adds taxes on prediction markets, digital ads, crypto
Illinois Governor J.B. Pritzker approved a nearly $56 billion state budget that imposes new taxes on prediction markets, digital advertising, social media platforms, and cryptocurrency. The measure, reported June 16, 2026, follows April cease-and-desist orders issued by Illinois to Kalshi, Robinhood, and Crypto.com, which drew immediate pushback from the Commodity Futures Trading Commission. The budget specifically names Kalshi, Polymarket, and Crypto.com as platforms subject to the new prediction-market tax. The move places Illinois alongside Kentucky, which enacted a prediction market excise tax earlier in 2026, as states that have moved to target the sector for revenue.
Kalshi, Polymarket, and Crypto.com must now absorb an additional state tax layer on top of defending against Illinois's earlier cease-and-desist orders. The CFTC's opposition to those orders sets up a direct state-federal clash that could determine whether platforms face duplicative compliance burdens or a single federal standard.
Illinois to Kentucky's earlier excise tax and the CFTC's parallel preemption suits in Minnesota and New Mexico, Kalshi and Polymarket now face state-level tax or enforcement action in multiple jurisdictions while the CFTC pushes federal exclusivity.