Federal judge Martha Pacold issued an injunction on Oct. 2, 2026, preventing the state of Illinois from regulating prediction‑market platforms such as Kalshi and Polymarket as if they were sportsbooks.
The court determined that trades in prediction markets are governed solely by federal regulators, placing them outside the reach of state gambling statutes.
Illinois had attempted to apply its gambling regulations to these platforms, but the decision held that the effort is preempted by federal authority.