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Prediction platform Kalshi files lawsuit against Louisiana leadership over sports betting rules
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BATON ROUGE — Online prediction market Kalshi has filed a federal lawsuit against top Louisiana leaders, seeking to block the state from shutting down its sports-related trading platform or charging it under local gambling laws.
The lawsuit filed in the U.S. District Court for the Western District of Louisiana, names Governor Jeff Landry, Attorney General Liz Murrill and members of the Louisiana Gaming Control Board as defendants.
The battle centers on a fundamental disagreement over who has the authority to regulate the platform.
Kalshi is arguing it operates as a federally licensed financial exchange under the Commodity Futures Trading Commission (CFTC). Kalshi says its contracts are legitimate financial tools—used by individuals and companies to hedge financial risk—not regular bets against a bookmaker. Because federal law governs its markets, Kalshi argues that the U.S. Constitution bars individual states from stepping in to regulate or outlaw them.
State regulators argue that staking money on the outcome of a game is illegal sports gambling, regardless of whether a company holds a federal license. Under Louisiana law, offering sports wagering without a state gaming license is a crime.
The lawsuit follows tough enforcement rules that took effect in Louisiana on August 1, 2026. Under those laws, unlicensed operators face severe penalties, including website shutdowns, frozen bank accounts and prison sentences of up to five years per wager.
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