Key Takeaways Judge Martha Pacold found Kalshi’s title-game contracts are likely swaps under the Commodity Exchange Act. Illinois’ licensing rules and a related criminal provision are likely preempted and cannot be enforced. Judge Says a Swap Is a Swap Kalshi has won a partial preliminary injunction against Illinois, its first federal court win since a Minnesota judge blocked that state’s prediction market ban in July. On Oct. 2, U.S. District Judge Martha M. Pacold of the Northern District of Illinois granted in part requests from Coinbase, the U.S. government, and Kalshi, finding the state’s sports wagering license regime and a …