Operator v. state
KalshiEX LLC v. Raoul
U.S. District Court for the Northern District of Illinois, 1:26-cv-07363
Injunction granted
On Oct. 2, 2026 Judge Martha M. Pacold granted in part the preliminary-injunction motions in this case and the related Coinbase and United States/CFTC cases, finding Illinois' sports-wagering licensing requirements and related criminal provisions likely preempted as applied to the contracts at issue. The parties must file a proposed injunction by Oct. 29, 2026; challenges to Illinois' wagering and transaction fees were held for further briefing. No appeal reported as of Oct. 21, 2026.
The question
Whether the Commodity Exchange Act preempts Illinois gambling or sports-wagering law as applied to event contracts listed on a CFTC-designated contract market.
Kalshi sued Illinois officials amid Illinois Gaming Board cease-and-desist proceedings. The case was reassigned to Judge Pacold as related to the federal government's and Coinbase's suits, and on Oct. 2, 2026 she granted partial preliminary relief in all three cases, tailored to the contracts at issue (such as championship-winner contracts), while leaving the fee challenges for later decision.
Docket timeline
Preliminary-injunction motions granted in part in the three related cases; proposed injunction due Oct. 29, 2026.
Source: defirate.com
Reply filed; case reassigned to Judge Pacold.
Source: dockets.justia.com
State opposes the motion.
Source: dockets.justia.com
TRO/PI motion filed.
Source: dockets.justia.com
Complaint filed.
Source: dockets.justia.com