Kalshi filed a lawsuit against Illinois officials on Tuesday, challenging a new state tax on sports-related prediction markets. The suit was brought in the US District Court for the Northern District of Illinois. It alleges that state officials have overstepped federal regulatory authority.
The company claims Illinois is set to impose a 15 percent tax on gross receipts from sports-related wagers beginning next week. Kalshi argues that this measure interferes with federal oversight of prediction markets.
In the complaint, the firm stated that Illinois officials “usurped” the authority of federal regulators. The filing marks the latest step in Kalshi’s efforts to block the tax before it takes effect.
The Northern District of Illinois court will now review the case. No immediate ruling has been issued.
