Louisiana Attorney General Files Sweeping Prediction Market Lawsuit

• Attorney General Liz Murrill announced today she filed a lawsuit against nearly ever single prediction market company operating in the state
• The sweeping lawsuit includes Kalshi, Polymarket, Robinhood, Crypto.com, Underdog, Novig, and others
• The attorney general is seeking an immediate restraining order and injunction against the companies

Louisiana Attorney General Liz Murrill announced today the filing of a sweeping lawsuit against nearly every single prediction market company offering event contracts in the state of Louisiana.

Murrill filed the lawsuit in the 21st Judicial District Court, Parish of Tangipahoa. The lawsuit includes Kalshi, Polymarket, Robinhood, Crypto.com, Underdog, Novig, ProphetX, and several other prediction market companies operating in the state.

“This morning I filed suit in Louisiana state court against Kalshi, Polymarket, and numerous other illegal online gambling operations. For too long, they have violated our laws with impunity. No longer: I am seeking an immediate restraining order and an injunction to restore the rule of law in Louisiana,” Murrill said on the social media platform X.

Temporary Restraining Order, Preliminary Injunction Sought

Murrill and the state of Louisiana petitioned for a temporary restraining order, preliminary injunction, civil penalties, and other relief the court may provide against the listed prediction market companies.

According to Murrill, the companies included in the lawsuit do not comply with Louisiana gambling laws, essentially offering unlicensed sports betting and gambling through their offered sports and entertainment event contracts.

Murrill’s lawsuit comes less than a month after Kalshi filed a preliminary lawsuit against the state and the attorney general in U.S. District Court Western District of Louisiana. Kalshi filed the lawsuit against Louisiana and Murrill to prohibit the state from enforcing its state gambling laws. In the litigation, Kalshi correctly predicted the state would “imminently bring an enforcement action with the intent to bar Kalshi from offering event contracts,” noting actions taken by the Louisiana Gaming Control Board and public comments made by Murrill regarding their event contracts.

Kalshi requested a temporary restraining order, preliminary injunction, and permanent injunction prohibiting Louisiana from enforcing its state gambling laws against its sports event contracts.

As is the case with most of Kalshi’s state lawsuits, the company contends the Commodity Exchange Act (CEA) grants the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over event contracts.

Kalshi Files Preliminary Injunction in Response

Kalshi wasted little time today to respond to Murrill’s lawsuit, filing a preliminary injunction against the state in U.S. District Court Western District of Louisiana. Kalshi submitted a motion for orders temporarily restraining and preliminarily enjoining the state from pursuing any action against Kalshi and its affiliates concerning event contract trading.

“Based on recent discussions with representatives of the state of Louisiana, Kalshi believes that the State will initiate an action against Kalshi in state court to restrict Kalshi from operating in Louisiana. As a result, Kalshi faces imminent criminal, administrative, and forfeiture exposure—notwithstanding that the CFTC, the federal agency with exclusive jurisdiction over Kalshi’s event contracts, has repeatedly explained that they are lawful,” Kalshi counsel wrote in the notice.

A preliminary injunction, they claim, is more than appropriate due to the “imminent enforcement action.”