Kalshi sues Illinois over new taxes and licensing on sports event contracts
Kalshi sued Illinois in late June over a law effective July 1, claiming it classifies sports event contracts as sports wagering subject to taxes and licensing. The crypto industry has filed a broader constitutional lawsuit against the state's transaction tax. North Carolina's new budget authorizes CFTC-regulated platforms and taxes net revenues at 6% with no licensing required.
The Illinois suit forces Kalshi to fight on yet another front against taxes and licensing framed around sports wagering. A loss here opens the door for other states to use similar rules to restrict event contracts without defending pure gambling-law charges.
Rivals like Polymarket face the same exposure. North Carolina's authorization-plus-tax model shows an alternative path states may copy. Kalshi's legal team must now address tax, licensing, and preemption issues across states.
Kalshi's Illinois suit adds to its state and federal court fights, including recent losses or injunctions in Washington and Utah.