Louisiana becomes 11th state to sue Kalshi, Robinhood & others

Louisiana accuses 10 platforms of operating illegally, joining a state-federal jurisdiction fight that could reach the Supreme Court.

The hit

Louisiana has sued Kalshi, Robinhood & eight others, becoming the 11th state to take prediction market platforms to court. Attorney General Liz Murrill said the platforms have operated illegally in the state & is seeking a restraining order & injunction. Kalshi filed its own emergency temporary restraining order, saying in its filing it expected Louisiana to sue.

Why it matters

The fight is about who regulates event contracts & sports-style wagers sold through prediction markets: states or the federal Commodity Futures Trading Commission. States say the platforms are avoiding tax as well as breaking the law. Robinhood says its contracts are CFTC-regulated & compliant, while Coinbase calls state lawsuits like Louisiana’s an example of fragmented enforcement. For bettors, that means access to platforms like Kalshi & Robinhood could narrow state by state while courts settle jurisdiction.

The record

States suing prediction markets	11, including Louisiana, Arkansas, Utah & Connecticut (The Block)
CFTC investigating Kalshi	over alleged failure to disclose event contracts properly (CNBC)
CFTC investigating Polymarket	over alleged breach of a 2022 deal to ban US users (Reuters)

What happens next

Watch for any ruling on the CFTC’s push for exclusive jurisdiction over states, a dispute that could later reach the Supreme Court.

Sources: Louisiana sues Kalshi, Robinhood and other prediction markets in escalating regulatory fight

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