Woofun AI reports that Kalshi has initiated legal proceedings in the U.S. District Court for the Northern District of Illinois against Attorney General Kwame Raoul, Governor JB Pritzker, and other state officials. The lawsuit targets SB3019, a budget provision mandating state-level licenses for prediction market platforms effective July 1, which Kalshi argues conflicts with federal preemption under the Commodity Exchange Act.

Kalshi contends that halting sports event contracts in Illinois to comply with the bill would breach CFTC uniformity requirements and damage its business interests. The company is requesting a temporary restraining order, a preliminary injunction, and a permanent injunction to stop Illinois from enforcing the legislation.