Louisiana AG Liz Murrill sues Kalshi, Polymarket, Robinhood, Coinbase, and Gemini over event contracts
Louisiana Attorney General Liz Murrill filed a lawsuit on Thursday, November 12, 2026 targeting multiple prediction market platforms operating in the state. The suit names Kalshi, Polymarket, Robinhood, Coinbase, Gemini, Crypto.com, Underdog, Novig, ForecastEx, and ProphetX among the defendants, accusing them of operating illegal, unlicensed gambling operations through event contracts. One source reports a judge separately ordered Kalshi, Polymarket, and others to halt event contracts in Louisiana, though details remain unconfirmed. The suit centers on contracts tied to sports, awards, elections, and interest rate changes.
Louisiana joins Arkansas, Ohio, Tennessee, and Missouri in active state litigation against CFTC-registered prediction market platforms, stripping away the federal preemption shield operators once relied upon. Kalshi now faces parallel civil suits across five states while its co-founders face felony criminal summons in Utah on December 4, scattering legal resources across incompatible state theories. The Louisiana complaint repeats the illegal gambling framing that Judge McMahon endorsed in New York against Novig.
Robinhood's claim that its event contracts run through a CFTC-regulated entity, Robinhood Derivatives, will now be tested in court. Each state suit that survives dismissal becomes a photocopied template for peers. Platforms must choose between expensive state-by-state settlements and a shrinking window for federal preemption relief. A second platform losing on the gambling classification would accelerate the collapse of CFTC registration as a defensive barrier.