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Illinois lawmakers seek to regulate, tax prediction markets amid federal lawsuit
The measure would require $1 million licenses and a 50% tax as lawmakers cite insider-trading risks and other consumer concerns.
- On Monday, Illinois lawmakers advanced Senate Bill 4168, the Prediction Markets Regulation and Taxation Act, requiring platforms like Kalshi or Polymarket to pay a $1 million licensing fee and imposing a 50% tax on adjusted gross earnings.
- The Trump administration recently sued Illinois to block state regulators from applying gambling laws to these platforms, arguing they are "designated contract markets" under the exclusive authority of the Commodity Futures Trading Commission .
- Market operators argue the 50% tax is "overly burdensome" and unconstitutional, while state officials contend these firms are making record profits by exposing residents to gaming products without basic consumer protections or oversight.
- State Senator Michael Hastings argued the legislation ensures entities "plays by the same rules," while the Illinois Attorney General's office reviews the federal complaint challenging state authority.
- The federal lawsuit against Illinois and the Illinois Gaming Board will likely determine whether states can enforce local gambling laws, highlighting ongoing tension between state consumer protection and federal regulatory uniformity.
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Capitol News Illinois | Trump administration sues Illinois over attempts to regulate prediction markets
The Trump administration is suing the State of Illinois to stop it from applying its gambling laws to prediction markets such as Kalshi or Polymarket, the latest salvo in an ongoing regulatory battle over who gets to regulate the multibillion…
Trump admin. sues Arizona, Connecticut, and Illinois over prediction markets
By Emma Kinery | Arizona Capitol Times Key Points: All three states have taken action against Kalshi or Polymarket Prediction market operators say they should be regulated by the CFTC There are at least 30 lawsuits between state regulators and industry operators The Trump Administration is suing three states in an attempt to push back on a wave of lawsuits from state gaming regulators who say prediction market platforms Kalshi and Polymarket ar…
Coverage Details
Total News Sources19
Leaning Left2Leaning Right5Center5Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
Factuality
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