Louisiana Sues Kalshi, Polymarket, Robinhood and Coinbase

Louisiana Attorney General Liz Murrill filed suit in state court on Nov. 12 against ten prediction market platforms. The Block lists the defendants as Kalshi, Robinhood, Polymarket, Forecastex, Crypto.com, Coinbase, Novig, Underdog, Gemini and Prophetx. The state argues their event contracts on sports, awards and elections amount to illegal online gambling.

Details

The case was filed in the 21st Judicial District Court, Tangipahoa Parish, according to Sports Betting Dime. Murrill seeks a temporary restraining order, preliminary and permanent injunctions and civil penalties. She said the companies "have violated our laws with impunity" for too long.

Kalshi responded by asking a federal court for a preliminary injunction, arguing the Commodity Exchange Act gives the CFTC exclusive authority over event contracts. Robinhood said its contracts are "federally regulated by the CFTC." A month earlier Kalshi had itself sued Louisiana officials, including Murrill and Gov. Jeff Landry, KALB reports. No hearing dates have been reported.

What This Means for the Market

The Block counts Louisiana as the 11th state to take prediction markets to court, after states including Arkansas and Utah. The fight over whether states or the CFTC regulate event contracts reaches the crypto sector too: Coinbase, Crypto.com, Gemini and Polymarket are all named. The outcome may depend on which court rules first. Live bitcoin price is in the daily brief. This is not investment advice.