# Illinois defends ban on prediction markets The state argues that sports and election predictions constitute gambling. - **Source:** [ReadWrite](https://brifing.si/source/7a996b61-bc09-4e57-8483-78f2ad9dd914) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c932f759-78d0-45ca-8ca4-79d1ef8bb15e ## Illinois views prediction markets as gambling Illinois argues that sports and election prediction markets are not federal financial instruments but gambling. The state insists these markets should be subject to Illinois gambling laws. ## Legal battle in court Illinois is defending its measures against prediction markets in federal court. The state claims these markets are not covered by the Commodity Exchange Act and that state laws apply. ## CFTC and Kalshi's objections The Commodity Futures Trading Commission (CFTC) and Kalshi are seeking a temporary halt to Illinois' ban on prediction markets. However, Illinois predicts these requests will fail. ## The nature of prediction markets Illinois argues that prediction markets are not financial hedging tools. The state emphasizes that these markets are based on sports contests and election outcomes and should be considered gambling. ## Other states' stance States like Pennsylvania, Arizona, Ohio, and Tennessee have expressed similar concerns about prediction markets. These states highlight that unlicensed activities violate the law. ## Protecting the public is a priority Illinois argues that disorder in prediction markets harms the public. The state emphasizes that effective enforcement of gambling laws serves the public interest. ## Sources covering this story - https://readwrite.com/illinois-fights-federal-injunction-bid-prediction-markets/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._