The Illinois injunction extends to licensing, taxation and enforcement, raising the stakes in the legal battle over sports-event contracts as more operators retreat from Utah.
A federal judge in Illinois has entered a preliminary injunction barring state officials from enforcing gambling laws against prediction CFTC-regulated markets, including licensing requirements and taxes. Meanwhile, DraftKings, FanDuel, Fanatics, and PrizePicks have restricted their event contract offerings in Utah.
Elsewhere, the U.S. Supreme Court granted Kalshi’s request for more time to respond to New Jersey’s petition; former Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz are scheduled to stand trial this week; and Oklahoma’s sweepstakes casino ban has taken effect.
The Big Story: Illinois Judge Enters Preliminary Injunction
U.S. District Judge Martha Pacold issued a preliminary injunction on Friday, formalizing her early October ruling in favor of Kalshi, Coinbase and the CFTC.
The injunction prohibits Illinois officials from imposing licensing requirements, associated fees and taxes “as related to the trading of swaps, including sports event contracts” listed or available through CFTC-regulated exchanges and futures commission merchants. It also bars specified criminal and civil enforcement actions, subpoenas and other compulsory investigations.
Notably, the injunction blocks the application of Illinois’ new tax and regulatory framework to covered sports event contracts. Passed as part of the state’s FY2027 budget, the measure imposes a 1.75% transaction tax on exchange wagers, rising to 3.5% after five million transactions. It also requires prediction markets to obtain a sports betting license.
Pacold’s earlier ruling left the taxation question unresolved, finding that states may generally tax federally regulated activities. However, the October 30 injunction expressly includes associated fees and taxes among the restrictions Illinois cannot enforce against covered contracts.
Illinois Appeals as Seventh Circuit Faces Five Prediction Market Cases
The order protects covered prediction markets while litigation continues and does not finally resolve the legality of sports event contracts. Illinois officials have appealed the ruling to the U.S. Court of Appeals for the Seventh Circuit.
Five cases now sit before the appellate court: the three in Illinois and two in Wisconsin.
The Wisconsin cases include the CFTC’s appeal of a federal ruling denying its motion for a preliminary injunction in July and Kalshi’s appeal of a May decision allowing the Ho-Chunk Nation’s Indian Gaming Regulatory Act (IGRA) claims against the prediction-market operator to proceed.
The Daily Wire
DraftKings, FanDuel, Fanatics, PrizePicks Retreat From Utah Prediction Markets
Utah’s escalation of its legal battle with Kalshi, including last week’s criminal charges against the exchange and its founders, has coincided with at least four operators restricting their prediction market offerings in the state.
PrizePicks was among the first to act. On Wednesday, the day Utah filed its complaint, the company updated its terms and conditions to allow only its daily fantasy sports Player Picks product in Utah.
On Thursday, DraftKings emailed users to say it would offer only certain financial event contracts in the state. FanDuel followed suit on Friday, withdrawing sports, politics, politics and novelty contracts, leaving only financial ones available in Utah.
Fanatics still lists the state as an available jurisdiction, but multiple reports say it will stop accepting trades in Utah on November 4.
Kalshi Gets SCOTUS Extension, Challenges New York Subpoena
The Supreme Court granted Kalshi’s request for a 28-day extension to file its opposition to New Jersey’s petition seeking review of the Third Circuit’s ruling in favor of the exchange. The deadline for Kalshi’s response is now December 7.
Former U.S. Solicitor General Paul Clement, who represented the losing side in Murphy v. NCAA, the 2018 Supreme Court case that struck down the federal restriction on state-authorized sports betting, will represent Kalshi. The Supreme Court has not yet decided whether to hear the case.
Meanwhile, in New York, Kalshi is seeking to block a subpoena issued by the office of New York Attorney General Letitia James requesting records related to advertising, marketing payments, proprietary trading, market making, and communications with regulators.
In a filing shared by gaming attorney Daniel Wallach, Kalshi argues that the subpoena improperly seeks evidence concerning issues already being litigated in the state’s enforcement action against the exchange. The company has requested a protective order.
New York officials have disputed that characterization. The attorney general’s office maintains that the subpoena supports a separate investigation into potentially deceptive advertising and possible fraud involving prediction market participants.
Emmanuel Clase and Luis Ortiz Go On Trial Over Alleged Pitch-Fixing Scheme
Former Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz are scheduled to go on trial on November 2 in Brooklyn federal court over allegations that they accepted bribes to manipulate individual pitches for gamblers.
Prosecutors allege that the pitchers provided gamblers with inside information about their pitches and helped them win at least $460,000 through in-game proposition bets on pitch speed and outcomes.
Clase, a three-time All-Star, allegedly began providing information to bettors in 2023 before recruiting Ortiz in 2025. Both players have pleaded not guilty to charges including wire fraud conspiracy, money laundering conspiracy and conspiracy to influence sporting contests through bribery.
Jury selection is scheduled to begin this week, and the trial is expected to last about one month.
Philadelphia 76ers Become First NBA Team to Partner With Kalshi
The Philadelphia 76ers have announced a multiyear partnership with Kalshi, becoming the first NBA team to announce a direct partnership with Kalshi.
The agreement includes in-arena advertising, digital content, fan promotions and merchandise opportunities. As part of the partnership, Kalshi also sponsored free rides on Philadelphia’s SEPTA public transportation system following Friday’s game against the New York Knicks.
The agreement follows the NBA’s partnership with Kalshi and Polymarket, which established cooperation on official data, market integrity and consumer protection.
Previously, NBA star LeBron James signed an endorsement deal with Polymarket in September. Polymarket will reportedly pay James $15 million per year under the agreement.
Oklahoma Sweepstakes Casino Ban Takes Effect
Oklahoma has banned certain dual-currency sweepstakes casinos, effective November 1.
Senate Bill 1589, enacted after lawmakers overrode Governor Kevin Stitt’s veto in May, prohibits certain online casino-style games using virtual currencies redeemable for cash or prizes. The legislation also extends potential liability to businesses that support prohibited operations.
Most popular platforms, such as Chumba Casino, Stake, High 5 Casino, and McLuck, have already exited the state, while others, such as Modo, have moved to a free-to-play, Gold Coin-only model.
Oklahoma joins a growing number of states restricting sweepstakes casinos this year, including Indiana, Maine, Tennessee and Louisiana. In 2025, California, Connecticut, Montana, Nevada, New York and New Jersey also passed laws restricting the platforms.
Industry Developments to Watch This Week
This week is marked by prediction market court hearings, Tuesday’s midterm elections and third-quarter earnings reports.
Prediction market litigation kicks off on Tuesday, when the Second Circuit is scheduled to hear Kalshi’s request for an injunction pending appeal against New York, along with Kalshi and Coinbase’s appeals in their Connecticut litigation.
On Wednesday, the First Circuit is scheduled to hear Robinhood’s Massachusetts appeal, while on Friday, a Utah federal court will hold a status and scheduling conference in the CFTC’s lawsuit seeking a temporary restraining order and preliminary injunction against Utah.
Tuesday’s midterm elections are also in focus for the sports betting and prediction market industries. In Nebraska, voters will decide whether to legalize online sports betting, while broader election results will be analyzed for the accuracy of prediction markets.
Third-quarter earnings season continues in full swing for the gambling industry. Flutter reports on Wednesday, followed by DraftKings, PENN Entertainment, and Wynn Resorts on Thursday. Flutter and DraftKings’ results and commentary will be especially worth watching for insights into their traditional sports betting businesses and prediction market strategies.
Other companies scheduled to report this week include Super Group, Genius Sports, Sportradar, Kambi, Light and Wonder, Red Rock Resorts, and Hacksaw Gaming.
Featured image: Ken Lund on Wikimedia Commons (license)
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