Louisiana AG sues Kalshi, Polymarket, Robinhood, Coinbase, and Gemini over prediction markets
Louisiana Attorney General Liz Murrill has filed a lawsuit against five major trading platforms, including Kalshi, Polymarket, Robinhood, Coinbase, and Gemini, alleging they operate illegal sports and election betting operations.
The lawsuit, filed on November 12, 2026, targets platforms that allow users to wager on various events including sports, awards, and elections. Louisiana is treating all five companies as participants in the same illegal gambling activity, regardless of how each platform describes its business operations.
Legal Battle Escalates
The state is seeking an immediate temporary restraining order and injunction to force the platforms to stop offering the contested contracts. This represents the first time Louisiana has consolidated enforcement against multiple prediction-market platforms in a single lawsuit, rather than pursuing companies individually.
Kalshi has already taken preemptive action, filing a federal lawsuit on October 23, 2026, arguing that the Commodity Exchange Act—a federal law governing commodities and derivatives trading—preempts state gambling laws. Polymarket has also filed in federal court, pointing to regulatory changes implemented since August 2026 as support for their position.
Regulatory Context
Louisiana's action builds on previous regulatory steps. In 2025, the Louisiana Gaming Control Board issued an advisory stating that sports event contracts constitute gambling under state law. The state further tightened regulations in 2026 with new legislation expanding definitions and penalties for unauthorized gambling activities.
Louisiana is far from alone in its enforcement efforts. As of November 2026, at least 12 other states have reported active enforcement actions against similar prediction market platforms. The state's decision to name five companies in one filing, however, distinguishes its approach.
Implications for Platforms
If Louisiana obtains a restraining order or injunction, the named platforms could be forced to halt operations for sports, awards, and election contracts within the state while the case proceeds. Notably, the inclusion of crypto exchanges Coinbase and Gemini alongside dedicated prediction-market operators suggests states are not distinguishing between different types of platforms.
Prediction markets could allow people to wager on a wide range of subjects.
The outcome may hinge on the preemption question—whether federal courts agree the Commodity Exchange Act overrides state gambling statutes. Kalshi's emergency request and any ruling on Louisiana's restraining order will be closely watched, as will the progress of the federal lawsuits in parallel.
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