Kalshi and Coinbase win partial Illinois ruling on sports contracts
A federal judge granted partial preliminary injunctions to Kalshi, Coinbase, and the CFTC against Illinois state licensing rules for sports contracts. The ruling found the state requirements likely conflict with federal law but left wagering fees unresolved. The decision conflicts with a Wisconsin ruling now on appeal to the Seventh Circuit, deepening the circuit split over CFTC preemption of state gambling laws. (90 words)
The Illinois ruling gives Kalshi and Coinbase a foothold to argue that CFTC registration blocks state gambling licensing for sports contracts, directly countering losses in Ohio and Tennessee where Kalshi's preemption shield failed. Coinbase, which is newer to event contracts, this stakes out a federal-rights position it can replicate in other states.
Kalshi, the split decisions multiply legal spend on parallel defenses. The unresolved wagering fees leave a compliance gap that Illinois could still exploit. The circuit split between Illinois and Wisconsin pressures the Seventh Circuit and feeds directly into the Supreme Court petitions from New Jersey, Robinhood, and Crypto.com seeking uniform federal standards. (118 words)