Kalshi sues Louisiana in federal court to block state gambling enforcement against its sports event contracts
Prediction market operator Kalshi has filed a federal lawsuit against Louisiana's attorney general, governor and Gaming Control Board, saying it believes the state will "imminently" bring an enforcement action to stop its sports event contracts. Kalshi asks the court to declare that Louisiana's gambling and sports-wagering laws are preempted by the Commodity Exchange Act as applied to its exchange.
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Overview
- KalshiEX LLC filed a complaint for declaratory and injunctive relief in the U.S. District Court for the Western District of Louisiana on October 23, 2026 (Case No. 1:26-cv-04476).
- Defendants include Attorney General Liz Murrill, Governor Jeff Landry, the Louisiana Gaming Control Board and its members, and the Louisiana State Police Gaming Enforcement Division.
- Kalshi says it believes the state will "imminently" act to bar its event contracts, and that no non-enforcement agreement exists.
- The company says it will seek a preliminary injunction and, unless the state gives assurances, a temporary restraining order.
What Kalshi is asking the court to do
The complaint asks the court to declare that using Louisiana's gambling and sports-wagering statutes to regulate Kalshi's federally designated contract market violates the Supremacy Clause, and to bar state officials from enforcing those laws against Kalshi and its affiliates. Kalshi argues that the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over event contracts traded on such exchanges.
The state statements cited in the complaint
Kalshi points to a December 5, 2025 advisory notice in which the Gaming Control Board said it considers sports event contracts illegal gambling even when listed on a CFTC-regulated exchange, and "sees no defense to offering such activity pursuant to a CFTC license." The filing also cites public comments by Murrill and Board Chairman Christopher Hebert, and amicus briefs Murrill signed in other states' Kalshi cases.
The complaint notes that state enforcement tools that took effect on August 1, 2026 allow the attorney general to seek injunctions, website removal and the freezing of bank accounts.
Louisiana is the latest state in a wider legal fight over prediction markets, which includes a New York Gaming Commission petition to enforce subpoenas against Kalshi and actions in Utah and Ohio aimed at market makers and suppliers.
The claims are Kalshi's allegations in its complaint and have not been tested in court. As of publication, the court had not ruled on the case.
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Daniel Tan is an editor at AskSpinner News who believes industry writing can be informed, approachable and engaging. Daniel turns complex subjects into accessible articles and reports, giving readers a welcoming way into unfamiliar topics and room to build their understanding as they read.
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