Louisiana Sues Kalshi, Robinhood and Other Prediction Markets
Louisiana Attorney General Liz Murrill has sued Kalshi, Robinhood, Polymarket, Coinbase, Gemini and other platforms, seeking a restraining order over event contracts tied to sports, awards and elections. The platforms say federal law gives the CFTC exclusive jurisdiction.
Louisiana has taken prediction markets to court. Attorney General Liz Murrill sued ten platforms on Thursday, November 12, 2026, alleging their event contracts violate state gambling and sports wagering laws.
The attorney general's announcement names Kalshi, Robinhood, Polymarket, Forecastex, Crypto.com, Coinbase, Novig, Underdog, Gemini and Prophetx as defendants. Some reports named only five of them (Kalshi, Polymarket, Robinhood, Coinbase and Gemini) and said the case was filed in state court. The state alleges the platforms offer event contracts tied to sports, awards and elections in violation of Louisiana law.
Murrill said on X that she is seeking an immediate restraining order and an injunction.
"For too long, they have violated our laws with impunity."
"No longer: I am seeking an immediate restraining order and an injunction to restore the rule of law in Louisiana."
Liz Murrill, Louisiana Attorney General
Kalshi had already moved to get ahead of the case. It filed an emergency temporary restraining order request, saying it expected the state to start an action against it in state court. Kalshi also filed a preemptive federal suit on October 23, 2026, in the Western District of Louisiana, and Polymarket has filed in federal court as well. Both argue the Commodity Exchange Act preempts state law.
As of November 12, no final rulings had resolved any of the Louisiana cases.
Platforms push back
Robinhood says its event contracts are federally regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, in a compliant, regulated manner.
A Coinbase spokesperson said:
"Louisiana's lawsuit, filed while multiple federal appellate courts actively consider the same issues, is another example of the fragmented enforcement Congress sought to prevent when it gave the CFTC exclusive jurisdiction over event contracts."
A spokesperson for the Coalition for Prediction Markets described Louisiana's action against the industry as "a troubling and unlawful attempt to assert state authority over markets governed by federal law."
State-level pressure builds
Louisiana is the 11th state to sue one or more prediction markets, following Arkansas, Utah and Connecticut, among others. Other reporting puts the number of states with enforcement actions at no fewer than 12 besides Louisiana, so the count varies. Arkansas Attorney General Tim Griffin sued Kalshi on November 4, calling its sports event contracts illegal gambling.
Louisiana had signaled its position earlier. The Louisiana Gaming Control Board issued an advisory in 2025 stating that sports event contracts constitute gambling under state law, and 2026 legislation expanded definitions and penalties for unauthorized gambling.
The dispute is also playing out at the federal level. The CFTC has sued states to secure exclusive jurisdiction, a fight that could reach the Supreme Court. The agency has also privately warned Kalshi of possible charges over how it notified the CFTC about new products.
The defendant list spans dedicated prediction-market operators, a retail brokerage and crypto exchanges. Louisiana is treating them as participants in the same activity, regardless of how each describes its business.
