Illinois blocked from enforcing betting law on Kalshi & Coinbase
A US federal judge found Kalshi’s sports-related event contracts meet the statutory definition of a swap.
The hit
Coinbase & Kalshi have won a partial, preliminary injunction blocking Illinois from enforcing its sports-wagering & licensing scheme against them. A judge in the Northern District of Illinois issued the ruling in consolidated cases brought by Coinbase, Kalshi, the US government & the CFTC.
Why it matters
The ruling matters beyond Illinois because the judge found Kalshi’s sports-related event contracts meet the statutory definition of a swap under 7 U.S.C. § 1a(47)(A)(ii), federal commodities law.
The record
| Ruling date | 2 October 2026 (N.D. Illinois) |
|---|---|
| Judge | Martha M. Pacold |
| Case | Coinbase Fin. Mkts., Inc. v. Raoul, Nos. 1:25-cv-15406, 1:26-cv-03659, 1:26-cv-07363 |
| Statute cited | 7 U.S.C. § 1a(47)(A)(ii), the federal swap definition |
What happens next
The Justice Department flagged the ruling to the Southern District of New York ahead of 7 October 2026 oral argument in a separate criminal case in New York.
Sources: DOJ letter, S.D.N.Y. Document 42 (CourtListener)
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