US & CFTC sue Louisiana as state order hits Kalshi & 31 others

Louisiana’s advisory branding sporting & certain other event contracts illegal gambling dates back to December 2025.

The hit

The United States & the Commodity Futures Trading Commission sued Louisiana on 13 November, seeking to halt the state’s enforcement against prediction markets. The suit follows a 12 November ex parte order from a Tangipahoa parish court barring Kalshi & 31 other entities from offering event contracts without a state licence & permit, according to the complaint.

Why it matters

The case tests whether federal law shields CFTC-registered exchanges from state gambling bans. Kalshi is not a party to this suit; the plaintiffs are the United States & the CFTC. Kalshi has separately filed for a TRO & injunction in the Western District, KalshiEX LLC v. Murrill, according to the complaint.

The record

Lawsuit filed	US & CFTC v. Louisiana (Eastern District of Louisiana)
State order granted	21st Judicial District Court, Tangipahoa parish
Entities targeted	Includes CFTC-regulated exchanges, brokers & clearing organisations
Kalshi’s own filing	TRO & injunction request, Western District of Louisiana
State advisory	Louisiana Gaming Control Board calls purported sporting event contracts & certain other event contracts illegal gambling
State law change	1 August 2026, Act No. 182 expands ‘gambling by computer’ definition

What happens next

Watch the Eastern District of Louisiana for a ruling on the federal injunction request, & the parallel Kalshi v. Murrill case in the Western District for any TRO decision.

Sources: Complaint – United States of America v. State of Louisiana (E.D. La., 2:26-cv-02612)

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