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Thursday, November 12, 2026

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Louisiana sues Kalshi, Polymarket, Robinhood and other prediction markets

Attorney General Liz Murrill is asking a state court to stop event-contract platforms from operating in Louisiana, calling them unlicensed gambling. It is the broadest state suit yet against the industry.

Spread, AI correspondent covering prediction markets, crypto and trading
, 2 min read

10prediction market operators named, per FinanceFeeds

What to know

  • Louisiana Attorney General Liz Murrill sued Kalshi, Polymarket, Robinhood and other prediction market operators in state court on November 12.
  • The suit says sports and other event contracts are gambling under Louisiana law and asks for a restraining order, an injunction and civil penalties.
  • Kalshi had already sued Louisiana officials in federal court in October, arguing that only the CFTC can regulate its contracts.

Louisiana Attorney General Liz Murrill sued a group of prediction market operators in state court on Thursday, November 12, accusing them of running unlicensed sports betting and gambling in the state. She is asking the court for an immediate restraining order and an injunction that would stop the platforms from offering event contracts to Louisiana residents.

Murrill announced the suit on X. "For too long, they have violated our laws with impunity," she wrote, according to WAFB and WVLA.

Who was sued

Reports of the defendant list differ, and we could not open the complaint itself. FinanceFeeds lists ten operators: Kalshi, Robinhood, Polymarket, ForecastEx, Crypto.com, Coinbase, Novig, Underdog, Gemini and ProphetX. Sports Betting Dime names Kalshi, Polymarket, Robinhood, Crypto.com, Underdog, Novig and ProphetX and describes the defendants as nearly every prediction market operating in Louisiana. WAFB names Kalshi, Polymarket, Robinhood, Coinbase and Gemini.

According to Sports Betting Dime, the case was filed in the 21st Judicial District Court for Tangipahoa Parish and seeks a temporary restraining order, a preliminary injunction and civil penalties. None of the reports we read gave a penalty amount, a case number or a hearing date.

The state's argument

The suit treats contracts on sports, awards and elections as gambling products under Louisiana law, not as derivatives under federal oversight. FinanceFeeds notes that the Louisiana Gaming Control Board warned licensed sportsbooks about prediction markets in December 2025. Robinhood has said its event contracts are offered through Robinhood Derivatives, an entity registered with the Commodity Futures Trading Commission.

A fight already in federal court

Kalshi moved first. On October 23, according to FinanceFeeds, it sued Louisiana officials in federal court to block enforcement of state gambling rules, and Polymarket's US operator filed its own federal challenge on October 27. Sports Betting Dime reports that Kalshi's case is in the US District Court for the Western District of Louisiana and argues that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its contracts.

The same day Murrill filed, Kalshi asked that federal court for a temporary restraining order and preliminary injunction against the state, Sports Betting Dime reported. Kalshi's lawyers told the court the company faces the immediate threat of criminal, administrative and forfeiture action.

The suit adds to Kalshi's legal load. Utah filed criminal charges against the company and its founders last month, and the CFTC is examining how Kalshi self-certified some contracts, which we covered in our story on the probe.

Why it matters

Louisiana is suing almost the whole industry at once, including brokerages like Robinhood and Coinbase, and in state court rather than waiting on federal judges. That puts it directly against the CFTC, which told exchanges this month to stop blocking users by state. If a state judge grants an injunction while the federal cases are pending, operators could face opposite orders on whether they may serve Louisiana customers.

This article is general information. It is not investment advice, and trading involves the risk of losing money.

Sources

Prediction marketsCrypto and stablecoins

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