Latest

Checked Oct. 21, 2026

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

  1. 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)

    Yes, in part

Docket timeline

  1. Preliminary-injunction motion granted in part (order Doc. 99); proposed injunction due Oct. 29, 2026.

    Source: defirate.com

  2. PI motion due under the court's June 15, 2026 schedule (filing not separately verified).

    Source: dockets.justia.com

  3. Reassigned to Judge Pacold as related to Coinbase v. Raoul.

    Source: dockets.justia.com

  4. Complaint filed.

    Source: cftc.gov

Sources

  1. Justia docket: United States v. Illinois, N.D. Ill. 1:26-cv-03659
  2. CFTC release 9206-26: CFTC sues Arizona, Connecticut, Illinois (2026-04-02)
  3. Justia docket: KalshiEX v. Raoul, N.D. Ill. 1:26-cv-07363
  4. DeFi Rate legal tracker snapshot (Oct. 2026)
  5. SBC Americas: federal court grants CFTC, Kalshi preliminary injunctions against Illinois (2026-10-05)
  6. DeFi Rate: federal judge grants Kalshi and Coinbase partial injunctions against Illinois
  7. dockets.justia.com