Judge partly backs Coinbase & Kalshi in Illinois fight

A federal judge has granted preliminary injunctions sought by Coinbase, the US government & Kalshi against Illinois in part & continued the rest.

The hit

Judge Martha M. Pacold, of the Northern District of Illinois, Eastern Division, has granted preliminary injunctions in part & continued the rest in three linked cases pitting Coinbase, the US government & Kalshi against Illinois. The dispute began after Illinois sent Kalshi a cease-&-desist letter over its sports-linked prediction-market trades. The state later amended its gambling laws after oral argument in the Coinbase case.

Why it matters

Illinois argues Kalshi’s sports-linked contracts count as sports wagering under state law, requiring a licence, & believes Kalshi is in violation. Other states have taken similar action, including litigation in Nevada.

The record

Judge	Martha M. Pacold, US District Court, N.D. Illinois
Cases resolved together	Coinbase, CFTC/US & Kalshi dockets, plus intervenor plaintiffs Coalition for Fair Markets & North American Derivatives Exchange
Illinois transaction fee (new)	1.75% on first 5m exchange wagers, 3.5% after, per fiscal year
Existing fees	15% fee on gross sports wagering receipts under 230 ILCS 45/25-90(a); 25¢ or 50¢ per-wager fee under 230 ILCS 45/25-90(d-7)
Ruling date	2 October 2026

What happens next

Watch for the court’s resolution of the remaining parts of the motions, which the judge continued rather than ruled on.

Sources: United States of America v. State of Illinois, Document #99 (CourtListener)

Named in this story? Reply to newsdesk@pollbet.com & we publish it.

18+. Betting involves risk. If gambling is a problem for you or someone close to you, help is available.