Louisiana Sues 10 Prediction Market Platforms, Including Kalshi and Polymarket, in Sweeping Crackdown

Published November 13, 2026, 2:44 AM PKT. Based on reporting from The Block on November 12, 2026 (primary source), Covers on November 12, 2026 and Crypto Briefing on November 12, 2026 (secondary sources).

Louisiana has sued 10 prediction market operators in a single lawsuit, the widest state enforcement action yet against the fast-growing industry, accusing the platforms of running illegal online gambling operations under state law. The suit, filed by Attorney General Liz Murrill on November 12, 2026, names Kalshi, Robinhood, Polymarket, ForecastEx, Crypto.com, Coinbase, Novig, Underdog, Gemini and ProphetX, and asks a state court to shut down their event contracts on sports, politics, elections and awards.

The filing lands in the middle of a running legal fight over who regulates prediction markets, the states or the federal government, and it drew an immediate counterattack. Kalshi asked a federal court for emergency protection on the same day the state suit was filed, arguing that federal commodities law leaves the contracts to the Commodity Futures Trading Commission (CFTC) alone.

Ten platforms, one lawsuit

Murrill filed the complaint in the 21st Judicial District Court in Tangipahoa Parish, according to Covers. The state argues that the platforms are breaking Louisiana gambling and sports wagering laws by offering event contracts, the yes-or-no wagers on outcomes such as sports results, election results and award winners that have become the industry's core product.

On X, Murrill described the defendants as illegal online gambling operations and said the state had tolerated them long enough. "For too long, they have violated our laws with impunity," she wrote. "No longer: I am seeking an immediate restraining order and an injunction to restore the rule of law in Louisiana."

The lawsuit is the first time a state has targeted so many prediction market operators in a single civil action, according to Covers. The 10 defendants span the whole market: dedicated prediction exchanges such as Kalshi and Polymarket, brokerages that added event contracts such as Robinhood and Coinbase, and smaller operators including Novig, Underdog, ForecastEx and ProphetX, plus Crypto.com and Gemini.

What Louisiana is asking the court to do

The state is seeking an immediate temporary restraining order and a preliminary and permanent injunction to stop the platforms from offering the disputed contracts in Louisiana, according to The Block and Covers. Beyond stopping future trading, the complaint also demands restitution, disgorgement of profits and civil penalties, which would leave the operators liable for past transactions rather than only for future ones, according to iGaming House.

The case targets contracts in four categories: sports, politics, elections and awards. No ruling has been issued on the requested restraining order, and no hearing dates have been reported, according to Crypto Briefing. The allegations have not been adjudicated, and no court has yet ruled that the platforms violated Louisiana gambling laws.

Kalshi fires back in federal court

Kalshi did not wait to be served. After the state suit was filed, the company asked a federal court for an emergency temporary restraining order and a preliminary injunction against Louisiana, arguing that the Commodity Exchange Act gives the CFTC exclusive authority over its event contracts, according to The Block and Crypto Briefing.

Kalshi had already moved against the state weeks earlier. On October 23, 2026, the company filed a preemptive federal lawsuit against Louisiana officials in the Western District of Louisiana, KalshiEX LLC v. Murrill, case number 1:26-cv-04476, according to Dave Finances. Polymarket's US exchange filed its own federal case on October 27, 2026, according to the same report. Both companies argue that federal commodities law preempts state gambling law for their contracts.

Kalshi's emergency filing said the company expected the state action, based on recent discussions with Louisiana representatives. "Based on recent discussions with representatives of the state of Louisiana, Kalshi believes that the State will initiate an action against Kalshi in state court to restrict Kalshi from operating in Louisiana," the filing said, according to The Block.

The platforms' answer: federal law governs

The companies named in the suit answered with the same core argument: their contracts are federally regulated, and state enforcement is the wrong forum. A Robinhood spokesperson told The Block that the company's event contracts are federally regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, "allowing retail customers to access prediction markets in a safe, compliant, and regulated manner."

A Coinbase spokesperson called Louisiana's approach fragmented. "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," the spokesperson said in an emailed statement, according to The Block.

The Coalition for Prediction Markets, which represents several of the platforms sued, called the lawsuit "troubling and unlawful." In a statement carried by The Block, the group said the suit was "a troubling and unlawful attempt to assert state authority over markets governed by federal law that would only cut off people's access to an important tool for gathering market information, expressing informed views, and hedging risks based on their own expertise."

The 11th state, or the 13th

The two counts circulating in coverage measure different things, and both are attributed here. The Block reported that Louisiana is now the 11th state to sue one or more prediction markets, following Arkansas, Utah and Connecticut, among others. Covers, citing sports betting and gaming attorney Daniel Wallach, reported that Louisiana is the 13th state to take civil enforcement action against prediction market companies. The first count tracks lawsuits filed, while the second includes other civil enforcement actions, which is why the numbers differ.

States have generally objected to sports event contracts in particular, arguing that the platforms operate illegally and avoid paying taxes, according to The Block. The dispute also raises concerns among tribal organizations about how the platforms could work around existing agreements. Prediction markets became massively popular after the 2024 US presidential election, The Block reported, with some of the biggest platforms now worth billions of dollars.

The CFTC investigations running alongside

The state fight is running next to two federal investigations of the same companies. CNBC reported on November 12 that the CFTC is investigating whether Kalshi failed to inform the CFTC properly about its proposed event contracts, according to The Block. Reuters reported that the CFTC is investigating Polymarket over whether it violated a 2022 agreement to ban US users from its flagship overseas platform.

The CFTC has also sued states to establish its own exclusive jurisdiction over event contracts, The Block reported, a dispute that could eventually reach the US Supreme Court. The regulator has separately warned Kalshi of imminent charges, a development MABOnChain covered on November 11, and the White House sent two CFTC nominees to the Senate on November 12, with confirmation hearings still to be scheduled.

What to watch next

The next facts to watch are whether the Tangipahoa Parish court grants Louisiana's temporary restraining order, how the federal court rules on Kalshi's emergency request, whether other named platforms file their own federal challenges, what the CFTC decides in its investigations of Kalshi and Polymarket, and whether the Senate schedules confirmation hearings for the two CFTC nominees, Nathan Anonick and Matthew Rowland, whose votes could shape how the regulator handles the state-versus-federal fight.

Sources

• The Block, Louisiana sues Kalshi, Robinhood and other prediction markets in escalating regulatory fight, November 12, 2026 (primary source: Louisiana Attorney General Liz Murrill filed a lawsuit against Kalshi, Robinhood, Polymarket, Forecastex, Crypto.com, Coinbase, Novig, Underdog, Gemini and Prophetx; Murrill said she is seeking an immediate restraining order and an injunction; Louisiana is the 11th state to sue one or more prediction markets; Kalshi filed an emergency temporary restraining order after the lawsuit; Robinhood, Coinbase and the Coalition for Prediction Markets responded; the CFTC is investigating Kalshi and Polymarket and has sued states over exclusive jurisdiction)
• Covers, Louisiana AG Targets 10 Prediction Market Platforms in Lawsuit, November 12, 2026 (secondary source: the lawsuit was filed in the 21st Judicial District Court in Tangipahoa Parish; it is the first time a state has targeted so many prediction market operators in a single civil action; Louisiana is the 13th state to take civil enforcement action, according to attorney Daniel Wallach; the suit seeks to block contracts involving sports, politics, elections and awards)
• Crypto Briefing, Louisiana AG sues Kalshi, Polymarket, Robinhood, Coinbase, and Gemini over prediction markets, November 12, 2026 (secondary source: Kalshi filed a preemptive federal suit on October 23, 2026 and Polymarket has also filed in federal court; as of November 12, 2026, no final rulings have resolved any of the cases filed in Louisiana)

This article is news reporting and is not investment advice.