Illinois lawmakers approve $56B budget with new prediction market tax
The Illinois General Assembly approved a $55.8 billion budget and revenue package that includes a new tax on prediction market trades by state residents, The Daily Line reported. The provision, part of the FY2027 budget, was advanced by Illinois Democrats as part of a broader revenue push that also targets cryptocurrency, fantasy sports, and social media platforms. Chicago Sun-Times noted the $56 billion plan singles out prediction markets alongside crypto and fantasy sports. Gambling Insider reported the measure also creates a daily fantasy sports framework. The legislation now goes to the governor. Specific tax rates, effective dates, and regulatory structures were not specified in the available reports. DeFi Rate claimed Illinois becomes the second US state to enact prediction market regulation, though this was not confirmed by higher-tier sources.
Any state law adopting Illinois's tax-and-licensure framework would force Kalshi and Polymarket to remit gaming taxes retroactively or face geofencing orders. The budget's passage arms state legislators in Nevada, Minnesota, and Rhode Island with a fiscal template for their own pending enforcement actions.
Illinois joins Rhode Island, Minnesota, and Nevada in advancing state-level action against prediction market platforms, making it the fourth jurisdiction this week to move from regulatory scrutiny to formal legislation or enforcement targeting Kalshi and Polymarket.