Louisiana considers prediction markets similar to gambling and is taking several major trading companies to court over them.
On November 12, 2026, Attorney General Liz Murrill filed a lawsuit in state court against Kalshi, Polymarket, Robinhood, Coinbase and Gemini. The state alleges the platforms violate Louisiana’s gambling and sports wagering laws by offering event contracts linked to sports, awards and elections.
Kalshi moved before being served, seeking an emergency court order against the state. The move sets up a dispute over who has authority to regulate these products.
What Louisiana is asking for
The lawsuit seeks an immediate temporary restraining order and an injunction. Louisiana wants the platforms to stop offering the contracts at issue, and wants that to happen quickly rather than after years of litigation.
Murrill said prediction markets could let people wager on a broad range of subjects.
The defendants’ range is notable. Kalshi and Polymarket focus on prediction markets. Robinhood is a retail brokerage, while Coinbase and Gemini are crypto exchanges. Louisiana is treating all five as participants in the same activity, regardless of how they describe their businesses.
This is the first time Louisiana has combined its enforcement efforts against a broad group of prediction-market platforms in one lawsuit. Instead of pursuing companies one by one, the state is targeting the category.
The federal versus state showdown
Kalshi filed a preemptive federal lawsuit on October 23, 2026, in the Western District of Louisiana. Polymarket has also filed in federal court. Both companies argue that the Commodity Exchange Act, a federal law governing commodities and derivatives trading, preempts state law.
The companies have also cited regulatory changes that have been in effect since August 2026 in support of their argument.
The platforms first went to federal court, arguing that the state lacks authority. The state then sued in its own courts, arguing that it does have authority. Kalshi is now seeking an emergency order to keep the state at bay while the dispute is resolved.
As of November 12, 2026, no final rulings had resolved any of the cases filed in Louisiana. All remain contested.
How Louisiana got here
In 2025, the Louisiana Gaming Control Board issued an advisory stating that sports event contracts constitute gambling under state law.
Louisiana also tightened its rules this year. Legislation passed in 2026 broadened the definitions and penalties related to unauthorized gambling activity.
Louisiana is not alone. As of November 2026, active enforcement actions against similar platforms had been reported in at least 12 other states. Louisiana is entering a crowded field, though its decision to name five companies in one filing stands out.
What the case could mean for platforms and users
The immediate stakes are operational. If Louisiana obtains a restraining order or injunction, the named platforms could be required to stop offering sports, awards and election contracts to users in the state, at least while the broader case proceeds.
The crypto exchanges warrant particular attention. Naming Coinbase and Gemini alongside dedicated prediction-market operators suggests states are not making a meaningful distinction based on platform type.
Key developments to watch include the response to Kalshi’s emergency request, any ruling on Louisiana’s restraining order, and the progress of the federal lawsuits filed by Kalshi and Polymarket.
The central question is preemption. If federal courts agree that the Commodity Exchange Act governs, state gambling laws may have limited reach over these contracts. If not, Louisiana and the at least 12 other states taking action could have a much stronger hand.
