Are Prediction Markets Legal in Illinois?
Status as of October 3, 2026: Kalshi, Polymarket US, ProphetX and Novig available, dispute pending; OG not offered. What the courts and the state have done, with dated sources.
Need help with gambling?
National Problem Gambling Helpline
1-800-522-4700 · Free · Confidential · 24/7
ncpgambling.org/chat (opens in a new tab) for online support · Our responsible trading hub
Quick Verdict: Kalshi, Polymarket US, ProphetX and Novig available, dispute pending; OG not offered
Kalshi, Polymarket US, ProphetX and Novig: Available, dispute pending; OG: not offered in Illinois. Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. (source (opens in a new tab))
Nationally: Federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage: the Third Circuit sided with Kalshi (Apr 6, 2026), the Ninth (Aug 28, 2026) and Sixth (Sep 25, 2026) sided with the states, and three Supreme Court petitions (Nos. 26-299, 26-338, 26-344) are pending; none has been granted.
- Status (as of October 3, 2026): Kalshi, Polymarket US, ProphetX and Novig: Available, dispute pending; OG: not offered in Illinois.
- Why: Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court.
- Welcome offers that apply to Illinois residents (partner terms of Oct 1, 2026): Kalshi, Polymarket US, ProphetX, Novig, Rebet. Not valid here: OG.
- Age: Kalshi, Polymarket US, OG and Rebet set 18 as the minimum (ProphetX: 18 or the local age of majority if higher); Novig sets 21. We recommend 21+.
- Status describes whether each platform accepts Illinois residents, not whether trading is legal. We do not give legal advice.
Best offer right now
Kalshi
Score 92/100
Trade $25 and Get $25!
Trade $25 in event contracts and get $25 in credit. Use code RANKPREDICTS at signup.
Code: RANKPREDICTS
Claim $25 credit (opens in a new tab)21+ · Terms apply · Verified Sep 2
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
Full offer details →Status in Illinois as of October 3, 2026
| Platform | Status | Why (source) | Welcome offer in Illinois |
|---|---|---|---|
| Kalshi | Available, dispute pending | Kalshi accepts Illinois residents; Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. (source (opens in a new tab)) | Valid: Trade $25 and Get $25! |
| Polymarket US | Available, dispute pending | Polymarket US accepts Illinois residents; Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. (source (opens in a new tab)) | Valid: Deposit $10 get a $25 Trading Bonus! |
| ProphetX | Available, dispute pending | ProphetX accepts Illinois residents; Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. (source (opens in a new tab)) | Valid: Trade $50, Earn $75! |
| OG (by Crypto.com) | Not offered | OG says it operates in every state but that some contracts are not available everywhere; Crypto.com said in Dec 2025 that it does not offer sports contracts in Illinois, and the OG welcome offer excludes Illinois. (source (opens in a new tab)) | Not valid here |
| Novig | Available, dispute pending | Novig accepts Illinois residents; Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. (source (opens in a new tab)) | Valid: Deposit $10 Get $50 in Trade Credits! |
| Rebet | Available, dispute pending | Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules include Illinois. (source (opens in a new tab)) | Valid: Get a 100% purchase match up to $100! |
What changed (newest first)
- Sep 11, 2026 (federal) — Crypto.com asks Supreme Court to review Ninth Circuit ruling (No. 26-344). Source: Supreme Court of the United States, docket No. 26-344 (opens in a new tab)
- Sep 10, 2026 (federal) — Kalshi seeks Ninth Circuit rehearing; Robinhood petitions Supreme Court. Source: Sports Betting Dime (opens in a new tab)
- Sep 2, 2026 (federal) — New Jersey asks U.S. Supreme Court to review Kalshi preemption ruling. Source: New Jersey Office of the Attorney General (opens in a new tab)
- Jun 26, 2026 — Kalshi sues Illinois over prediction market tax. Trade press reported that Kalshi filed a federal lawsuit in the Northern District of Illinois that week challenging the state's new tax on sports event contracts. Source: Sports Betting Dime (opens in a new tab)
- Jun 17, 2026 — CFTC expands Illinois lawsuit to challenge tax on sports event contracts. Trade press reported that the CFTC amended its lawsuit against Illinois to challenge the state's new tiered tax on sports event contracts. Source: Sports Betting Dime (opens in a new tab)
- Jun 16, 2026 — Illinois budget with first-in-nation tax on sports event contracts signed. Gov. JB Pritzker signed a state budget that includes a tiered transaction tax on sports event contracts traded on prediction market platforms, effective July 1, 2026 according to trade press. Source: Sports Betting Dime (opens in a new tab)
- Apr 2, 2026 (federal) — CFTC sues Arizona, Connecticut and Illinois over prediction markets. Source: CFTC press release 9206-26 (opens in a new tab)
- Dec 15, 2025 (federal) — Crypto.com says it no longer offers sports contracts in nine states. Source: Sports Betting Dime (opens in a new tab)
- Apr 2, 2025 — Illinois Gaming Board sends cease-and-desist notices to three companies. The Illinois Gaming Board ordered Kalshi, Crypto.com and Robinhood to stop offering sports event contracts to Illinois residents. Source: Sports Betting Dime (opens in a new tab)
Why the Illinois Per-Wager Tax Matters for Prediction Markets
Three structural effects:
- Pricing arbitrage. A $10 bet on DraftKings in Illinois costs $10.50 effectively (10 + $0.50 surcharge). The same expected payoff via a Kalshi event contract costs the contract premium plus Kalshi's per-trade fee — typically materially less than $0.50 on small-stake trades.
- High-frequency disincentive at sportsbooks. Bettors placing many small wagers (parlays, props, in-play) are penalized most heavily by the surcharge. These bettors are most likely to migrate to per-contract pricing on CFTC platforms.
- Illinois cannot impose a per-wager surcharge on Kalshi or Polymarket without contradicting the Third Circuit↗ (opens in a new tab)'s *Kalshi v.
What Illinois Residents Can Trade Right Now
- Geofenced by DraftKings Predictions, FanDuel Predicts, Fanatics Markets (their parent companies hold IL sportsbook licenses).
Illinois-specific market depth is strongest on Chicago Bears (NFL), Bulls (NBA), Blackhawks (NHL), Cubs and White Sox (MLB), Northwestern and Illinois Fighting Illini (NCAA) contracts.
Best Prediction Market Platforms for IL Residents
Kalshi — Full sports catalog. CFTC Designated Contract Market. No IL state sportsbook tax.
Routes through Kalshi. No IL state sportsbook tax.
Polymarket US — Strong political and macro depth. Funds in US dollars.
OG.com — Not available in Illinois. Lower per-contract fees than Kalshi.
Novig — Peer-to-peer no-vig sports markets. Available in IL.
Chalkboard — Sports prediction markets. Available in IL.
Sleeper — Fantasy-adjacent prediction props. Available in IL.
Rebet — Available in IL.
DraftKings Predictions / FanDuel Predicts / Fanatics Markets — Not available in IL (voluntary geofencing tied to state sportsbook licenses, which are now subject to the per-wager tax).
Eligibility Checklist for IL Residents
- 18+ on CFTC-regulated platforms (IL state sportsbooks: 21+).
- Government ID + SSN for KYC verification.
- US bank account or debit card.
Tax Treatment for IL Residents
- Federal: taxable, but the IRS↗ (opens in a new tab) hasn't issued guidance on event contracts; tax professionals argue for gambling income, capital gains or Section 1256 (60/40).
- Illinois state: Flat 4.95% state income tax applies to taxable gains.
- No per-wager state surcharge: This is the key difference vs IL state-licensed sportsbooks.
What could change the status
Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.
Sources
- The Hill: Lawmakers ramp up fight against sports betting on prediction markets (opens in a new tab)
- Holland & Knight: Federal Appeals Court: CFTC Jurisdiction Over Sports Event Contracts (opens in a new tab)
Prediction markets in other states
- Alaska
- California
- Colorado
- Connecticut
- Florida
- Hawaii
- Illinois
- Kansas
- Maryland
- Massachusetts
- Minnesota
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Dakota
- Oregon
- Pennsylvania
- Rhode Island
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Wyoming
- Alabama
- Arizona
- Arkansas
- Delaware
- Georgia
- Idaho
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Michigan
- Mississippi
- Missouri
- Montana
- Nevada
- New Mexico
- North Carolina
- Ohio
- Oklahoma
- Puerto Rico
- South Carolina
- South Dakota
- Tennessee
- Washington DC
- West Virginia
- Wisconsin
§ References & Sources
- Commodity Futures Trading Commission (CFTC) (opens in a new tab)— U.S. federal regulator
- CFTC Designated Contract Markets list (opens in a new tab)— CFTC
- 26 U.S. Code § 1256 — Section 1256 contracts marked to market (opens in a new tab)— Cornell Law / U.S. Code
- IRS Form 6781 — Gains and Losses From Section 1256 Contracts (opens in a new tab)— Internal Revenue Service
- National Council on Problem Gambling — 1-800-GAMBLER (opens in a new tab)— NCPG
Frequently asked questions
Are prediction markets legal in Illinois?
We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US, ProphetX and Novig: Available, dispute pending; OG: not offered in Illinois. Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. Nationally, federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage, and three Supreme Court petitions are pending; none has been granted.
Can I use Kalshi in Illinois?
Status as of October 3, 2026: Available, dispute pending. Kalshi accepts Illinois residents; Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. Kalshi's welcome offer (Trade $25 and Get $25!) applies to Illinois residents. Kalshi's minimum age is 18; we recommend 21+.
What has Illinois done about prediction markets?
Illinois regulators ordered Kalshi, Crypto.com and Robinhood to stop sports contracts in 2025 and the state taxes sports event contracts from Jul 1, 2026, which the CFTC and Kalshi are challenging in federal court. Most recent entries in our timeline: Jun 26, 2026: Kalshi sues Illinois over prediction market tax; Jun 17, 2026: CFTC expands Illinois lawsuit to challenge tax on sports event contracts; Jun 16, 2026: Illinois budget with first-in-nation tax on sports event contracts signed. Each entry above links to its source.
What could change the status in Illinois?
Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.
21+ · T&Cs apply · Terms
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.