United States v. state
United States v. State of Illinois
U.S. District Court for the Northern District of Illinois, 1:26-cv-03659
Injunction granted
On Oct. 2, 2026 Judge Martha M. Pacold granted in part the United States and CFTC's preliminary-injunction motion (together with Kalshi's and Coinbase's related motions), finding Illinois' sports-wagering licensing requirements and related criminal provisions likely preempted as applied to the contracts at issue. A proposed injunction is due Oct. 29, 2026; challenges to Illinois' wagering and transaction fees were held for further briefing.
The question
Whether the CEA preempts Illinois law as applied to event contracts on CFTC-registered exchanges, so that the state may be enjoined from enforcing it against them.
The CFTC sued Illinois as its Gaming Board pursued cease-and-desist proceedings against CFTC-registered exchanges. In October 2026 the court granted partial preliminary relief, the first such win for the federal government in the Seventh Circuit after a Wisconsin judge denied similar relief.
Resolved
- Yes, in part
Will a federal judge block Illinois from enforcing its gambling laws against prediction markets?
On Oct. 2, Judge Pacold granted the preliminary-injunction motions in part in the Kalshi, Coinbase and federal cases; fee challenges were held for more briefing. The injunction itself has not been entered; proposed terms are due Oct. 29. N.D. Ill. No. 1:26-cv-03659. Source: Opinion and order (PDF)
Docket timeline
Preliminary-injunction motion granted in part (order Doc. 99); proposed injunction due Oct. 29, 2026.
Source: defirate.com
PI motion due under the court's June 15, 2026 schedule (filing not separately verified).
Source: dockets.justia.com
Reassigned to Judge Pacold as related to Coinbase v. Raoul.
Source: dockets.justia.com
Complaint filed.
Source: cftc.gov
Sources
- Justia docket: United States v. Illinois, N.D. Ill. 1:26-cv-03659
- CFTC release 9206-26: CFTC sues Arizona, Connecticut, Illinois (2026-04-02)
- Justia docket: KalshiEX v. Raoul, N.D. Ill. 1:26-cv-07363
- DeFi Rate legal tracker snapshot (Oct. 2026)
- SBC Americas: federal court grants CFTC, Kalshi preliminary injunctions against Illinois (2026-10-05)
- DeFi Rate: federal judge grants Kalshi and Coinbase partial injunctions against Illinois
- dockets.justia.com