Louisiana Attorney General Liz Murrill announced that she initiated a legal action against the platforms Kalshi, Robinhood, Polymarket, Forecastex, Crypto.com, Coinbase, Novig, Underdog, Gemini, and Prophetx.
Louisiana represents the latest state to challenge prediction market platforms, adding to an escalating legal dispute between individual states and the federal government over regulatory oversight authority.
On Thursday, Louisiana Attorney General Liz Murrill stated that she brought a lawsuit against Kalshi, Robinhood, Polymarket, Forecastex, Crypto.com, Coinbase, Novig, Underdog, Gemini, and Prophetx for statutory violations.
“For too long, they have flouted our regulations without facing consequences,” Murrill declared in a social media post on X. “That ends now: I am requesting an immediate temporary restraining order and an injunction to re-establish the rule of law within Louisiana.”
Louisiana has become the eleventh state to take legal action against one or multiple prediction platforms, following similar moves by Arkansas, Utah, and Connecticut, among others. Meanwhile, the targeted platforms have pushed back. In response to Thursday’s legal filing, Kalshi proactively sought an emergency temporary restraining order.
“Based on recent communications with representatives from the state of Louisiana, Kalshi anticipates that the State will pursue legal action in state court to prohibit Kalshi from providing services in Louisiana,” Kalshi noted in its court documentation.
Prediction markets experienced massive growth following the 2024 presidential elections, with leading platforms currently valued in the billions. State authorities have raised specific objections regarding sports wagering, arguing that these platforms function unlawfully while bypassing tax obligations. Furthermore, tribal authorities have expressed anxiety that these services might bypass established agreements.
Conversely, the platforms contend that the Commodity Futures Trading Commission should maintain regulatory authority over the sector, including sports-related contracts. The CFTC has likewise initiated legal action against states to secure “exclusive jurisdiction,” a dispute that could eventually reach the Supreme Court.
Addressing the Louisiana litigation on Thursday, a Robinhood representative maintained that their event contracts are overseen at the federal level by the CFTC.
“As we have stated previously, Robinhood’s event contracts receive federal regulation from the CFTC and are made available via Robinhood Derivatives, LLC, an entity registered with the CFTC, enabling retail participants to engage with prediction markets securely and in full compliance,” the representative told The Block.
A Coinbase spokesperson characterized the strategy employed by the states as disjointed.
“The lawsuit from Louisiana, brought while multiple federal appeal courts are actively reviewing identical questions, serves as another instance of the fragmented enforcement that Congress intended to avoid by granting the CFTC exclusive authority over event contracts,” the representative stated via email.
The Coalition for Prediction Markets, representing several of the defendants named on Thursday, described the legal action as both “concerning and unlawful.”
“The aggressive stance taken by Louisiana against this sector represents a concerning and unauthorized effort to impose state jurisdiction upon markets regulated by federal statutes, which would merely restrict individuals from utilizing an essential mechanism for gathering market intelligence, voicing educated perspectives, and managing risks aligned with personal expertise,” the spokesperson remarked. “That outcome is unacceptable.”
In separate developments, CNBC reported on Wednesday that the CFTC is examining whether Kalshi failed to properly notify the agency regarding its planned event contracts. This follows a Reuters report indicating that the CFTC is reviewing Polymarket over potential breaches of a 2022 agreement wherein the platform pledged to exclude U.S. customers from its primary international site.
Updated at 10:10 p.m. UTC to incorporate official statements
Originally published at https://www.theblock.co/news/regulation/2026-11-12-louisiana-sues-kalshi-robinhood-other-prediction-markets-escalating-regulatory-fight-439052.
