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Illinois enforcement pause contrasts with Utah pullback in event contracts

Gambling Insider says Judge Martha Pacold's injunction stops Illinois applying its new transaction tax and sports betting license requirement to covered event contracts while the case continues, and the state has appealed to the Seventh Circuit. It adds that DraftKings, FanDuel, Fanatics and PrizePicks have restricted their event contract offerings in Utah as that state's case against Kalshi escalates.

A preliminary injunction in Illinois has halted state enforcement against CFTC-regulated prediction markets, according to Gambling Insider. The ruling comes as operators restrict event contract offerings in Utah amid a separate legal dispute.

Illinois restrictions paused during litigation

Judge Martha Pacold’s injunction prevents Illinois from applying its new transaction tax and sports betting license requirement to covered event contracts while the case continues, Gambling Insider says.

Illinois has appealed to the Seventh Circuit. The injunction provides an interim limit on enforcement rather than a final resolution of the underlying case.

Operators narrow Utah offerings

In Utah, DraftKings, FanDuel, Fanatics and PrizePicks have restricted their event contract offerings, according to Gambling Insider. Those changes come as the state’s case against Kalshi escalates.

The two developments reflect different immediate conditions for prediction-market access: a court-ordered enforcement pause in Illinois and narrower operator offerings in Utah. The reported Illinois protection applies to covered event contracts while litigation proceeds.

What it means for prediction markets

  • Illinois enforcement: The preliminary injunction blocks application of the new transaction tax and sports betting license requirement to covered contracts for now.
  • Appeal remains a key event: Illinois’s appeal to the Seventh Circuit leaves the legal dispute unresolved.
  • Utah availability: Restrictions by DraftKings, FanDuel, Fanatics and PrizePicks narrow their event contract offerings as the state pursues its case against Kalshi.
KalshiCFTCDraftKingsInfiniti MarketsInfiniti Signals

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    Gambling Insider
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