Kalshi sues Louisiana to block sports-contract crackdown
Kalshi says Louisiana has in effect threatened to ban it from the state over its sports event contracts.
The hit
Kalshi has sued Louisiana, filing a pre-emptive federal lawsuit on Friday to stop state officials enforcing gambling law against its sports event contracts, according to Yogonet. The company names Attorney General Liz Murrill, Governor Jeff Landry, Louisiana Gaming Control Board chair Christopher Hebert, a board director & state police, seeking a restraining order & injunctions.
Why it matters
Kalshi says Louisiana treats its federally regulated contracts as unlicensed gambling, even though it argues state law exempts exchange-traded instruments like futures. The case brings prediction-markets litigation into the Fifth Circuit’s jurisdiction for the first time. Kalshi says Louisiana has in effect threatened to ban it from the state.
The record
| Suit filed | Friday, US District Court, Western District of Louisiana |
|---|---|
| Warning letter | December 2025, LGCB chair Hebert to licensed sportsbooks |
| State laws in effect | House Bills 53 & 883, effective 1 August 2026 |
| Maximum penalty | 50 years’ imprisonment under Act 48 racketeering upgrade |
| Rival case | Utah sued Kalshi this month over sports, politics & mention markets |
| Illinois ruling | Judge Martha Pacold ruled Kalshi & Coinbase answer to the CFTC, not the state gaming commission |
What happens next
Watch for a ruling on Kalshi’s request for a temporary restraining order.
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