Woofun AI reports that prediction market platform Kalshi has filed a lawsuit in the U.S. District Court for the Northern District of Illinois to challenge the newly signed SB3019 bill. The legislation mandates state-level licenses for prediction market platforms and imposes a 0.2% tax on digital asset transactions involving Illinois customers, effective July 1.

Kalshi contends that federal law grants the CFTC exclusive jurisdiction over exchange-traded derivatives, rendering additional state regulatory requirements inconsistent with the Commodity Exchange Act. The company argues that withdrawing sports event contracts from Illinois to comply with state law would violate the CFTC's uniformity requirement, while operating without a license breaches state law and implementing geographic blocking technology incurs significant costs. This legal action represents the latest development in the jurisdictional dispute between the CFTC and various states, following the CFTC's lawsuits against nine states to assert federal authority.