What Illinois's SB 3019 means for traders, the court challenge status, and real-time platform access.
Can you trade on Kalshi or Polymarket in Illinois? Illinois SB 3019 takes effect July 1, 2026. Here's what that means for your account.
Court ruling expected N.D. Illinois — no ruling confirmed as of July 1, 2026. Check back here after the ruling.
Last updated: Jul 1, 2026, 10:00 AM ET
Illinois SB 3019 took effect July 1, 2026. Kalshi filed a TRO in N.D. Illinois. A ruling has not been publicly confirmed. Platforms appear to be operating in Illinois while the TRO is pending.
Illinois General Assembly passes SB 3019
Broad budget and revenue bill includes new prediction market licensing requirements, a 1.75%–3.5% exchange wager tax on sports event contracts, and a 0.2% Digital Asset Privilege Tax on digital asset businesses. Illinois becomes the second state to enact a prediction market tax, after Kentucky.
Gov. Pritzker signs SB 3019 — Public Act 104-0468
Signed as part of Illinois's $55.9 billion FY2027 budget. Prediction market provisions take effect July 1, 2026.
Kalshi sues Illinois in N.D. Illinois
KalshiEX LLC v. Raoul (No. 1:26-cv-07363) filed in U.S. District Court for the Northern District of Illinois against Gov. Pritzker, AG Kwame Raoul, and Illinois Gaming Board officials. Kalshi seeks TRO + preliminary injunction + permanent injunction.
CFTC also challenging SB 3019
The CFTC — which has sued nine states over prediction market preemption — amended its existing Illinois complaint to challenge SB 3019, seeking its own preliminary injunction. The federal regulator argues CFTC has exclusive jurisdiction over DCM event contracts.
Legal precedent: Third Circuit rules for Kalshi (NJ)
The Third Circuit Court of Appeals ruled 2-1 in KalshiEX LLC v. Flaherty that the CFTC has exclusive jurisdiction over Kalshi sports-related event contracts, preempting state gambling law. First federal appeals court ruling affirming CFTC preemption.
TRO ruling — the moment that matters
The N.D. Illinois court is expected to rule on Kalshi's TRO motion by N.D. Illinois — no ruling confirmed as of July 1, 2026 — the last business day before SB 3019 takes effect. This page reflects the latest available court and platform information.
Ruling pending — platforms operating normally as of June 28.
No ruling yet. The N.D. Illinois court is expected to act by N.D. Illinois — no ruling confirmed as of July 1, 2026 — the last business day before SB 3019 takes effect July 1. Until then, platforms are operating normally in Illinois.
What you can do now: Bookmark this page. It will update automatically within one hour of the ruling based on verified court documents. Consider noting your current balances in case you need to withdraw quickly.
| Platform | Access Status |
|---|---|
| Kalshi | Confirm at platform Filed TRO June 23. TRO outcome pending. |
| Polymarket | Confirm at platform Operates as CFTC DCM via QCX LLC. TRO covers DCMs. |
| PredictIt | Confirm at platform Not a CFTC DCM; operates under CFTC no-action letter. Status unclear pending ruling. |
| Robinhood Prediction Markets | Confirm at platform Powered by Kalshi; status follows Kalshi's Illinois TRO outcome. |
| IBKR ForecastEx | Confirm at platform CFTC DCM. Confirm current Illinois access at IBKR's official site before trading. |
Access statuses reflect each platform's Terms of Service and public regulatory disclosures. Confirm your platform's current Illinois access directly before trading — status may change as the court case progresses.
CFTC has exclusive jurisdiction — The Commodity Exchange Act gives the CFTC sole authority over event contracts traded on CFTC-designated contract markets (DCMs). States cannot impose parallel licensing or tax regimes.
The Supremacy Clause argument — SB 3019 "expressly violates the CEA's exclusive jurisdiction provision by asserting concurrent state jurisdiction over sports events contracts traded on federally regulated DCMs" (Kalshi complaint).
Third Circuit precedent (April 6, 2026) — The Third Circuit already ruled 2-1 in favor of CFTC preemption over event contracts in KalshiEX LLC v. Flaherty (N.J.). Kalshi argues the same logic applies in Illinois.
The CFTC itself — The federal regulator amended its own Illinois complaint to challenge SB 3019, making the same preemption argument.
State consumer protection authority — Illinois argues that prediction market operators are "prediction companies seeking to use the courts to avoid complying with the same rules and consumer protections that apply to other wagering operators in Illinois" (Pritzker spokesperson statement).
Sports wagering characterization — The state contends that Kalshi's sports event contracts are functionally sports bets subject to Illinois's Sports Wagering Act and existing state gambling laws.
Digital asset tax is a revenue measure — SB 3019's 0.2% digital asset privilege tax is framed as a general business revenue measure, not gambling regulation.
Ohio precedent (in their favor) — A federal court in Ohio denied Kalshi's preliminary injunction, ruling sports event contracts are not "swaps" under federal law and do not trigger preemption of state gaming law.
What happens next: If the TRO is granted, the case proceeds to a preliminary injunction hearing where both sides argue the merits in more depth. If denied, Kalshi or the CFTC could file an emergency motion with the 7th Circuit Court of Appeals. The underlying preemption question may ultimately reach the Supreme Court — Illinois and Ohio have ruled differently, setting up a circuit split that SCOTUS may need to resolve.
Michigan Prediction Markets
Kalshi court order active through July 13 — companion state-blocking coverage.
State Regulations
Every state's prediction market status — restrictions, lawsuits, and live court dockets.
CFTC v. States
The CFTC's preemption campaign: all nine states sued, outcomes, and pending cases.
Primary Sources
Access statuses reflect each platform's Terms of Service. Confirm current Illinois access at the platform's official site before trading, as status may change with court developments.
