Illinois ramps up pressure on Kalshi and others over sports betting markets

Illinois has become the latest state to issue cease-and-desist letters to prediction markets like Kalshi and Robinhood, accusing them of breaking the law by letting people trade contracts based on sports events.

The Illinois Gaming Board (IGB) officially sent notices to several companies, including Crypto.com, claiming they offer unlicensed sports betting. According to the IGB, this goes against both the state’s Sports Wagering Act and its Criminal Code.

The letter states: “The IGB is aware that Kalshi is engaged in sports wagering activity in Illinois over the Internet and on mobile devices.

“The IGB has neither licensed nor authorized Kalshi to engage in sports wagering activity. Consequently, Kalshi’s activity constitutes illegal gambling in violation of Illinois law. Accordingly, Kalshi and anyone affiliated with its operations are directed to cease and desist this illegal activity. Failure to comply may subject Kalshi to civil or criminal penalties.”

What sets the Illinois Gaming Board apart from other state regulators is that their letters don’t include a specific deadline for the companies to comply.

These warnings from Illinois came just under 48 hours after the Ohio Casino Control Commission (OCCC) confirmed it had also sent out enforcement letters to the same three operators. Nevada and New Jersey have already taken similar action, after both issued cease-and-desist letters to Kalshi and New Jersey’s Division of Gaming Enforcement also reached out to Robinhood directly.

I petitioned @CFTC to stay, evaluate, and amend all sports and political event contracts while legal proceedings occur. Allowing the trading of these contracts violates states' rights to tax and regulate gaming.https://t.co/2Itr7dyfcZ

— Dina Titus (@repdinatitus) April 1, 2025

Kalshi is currently legal in all 50 states and has recently stepped into the sports arena.

Just before Illinois issued its cease-and-desist letters, Nevada Rep. Dina Titus, who co-chairs the Congressional Gaming Caucus, called on the Commodity Futures Trading Commission (CFTC) to step in. On Tuesday (Apr. 2), she urged the agency to suspend sports event trading on prediction market platforms altogether.

In a letter, she wrote: “I urge the Commission to exercise its authority to stay the listing of such contracts nationwide to ensure this unlawful activity does not persist as additional states, like New Jersey and Ohio have, determine if these contracts violate state law, and as a legal process unfolds in states, courts, and agencies.”

She claimed in the letter that platforms like Kalshi, Robinhood, and Crypto.com are offering event contracts on sports and political outcomes without proper licensing, contravening laws in states such as Nevada, New Jersey, and Ohio. ​

Titus also pointed out that Kalshi may have misrepresented its compliance in self-certifying these contracts, especially after acknowledging in court that sports contests constitute gaming, which is prohibited under the Commodity Exchange Act.

Kalshi has filed lawsuits against the Nevada Gaming Control Board (NGCB) and the New Jersey Division of Gaming Enforcement (DGE).

ReadWrite has reached out to Kalshi for comment.

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