Kalshi Sues Louisiana Over Sports Event Contracts

Prediction market operator Kalshi has filed a federal lawsuit to stop the state of Louisiana from applying its gambling laws to sports event contracts. The company is challenging House Bills 53 and 883, which take effect on August 1, 2026. The lawsuit was filed on October 23 in the U.S. District Court for the Western District of Louisiana.

Kalshi disputes the state's classification of these contracts as illegal gambling. According to the company, these products fall under federal oversight, and Louisiana has no power to regulate them. The company is seeking a temporary restraining order, followed by a preliminary and permanent injunction, before the state takes action.

The lawsuit is the latest in a series of cases Kalshi has brought against state efforts to apply gambling laws to prediction markets. The filing falls within the jurisdiction of the Fifth Circuit Court of Appeals, and whether states can regulate sports-related prediction contracts under gambling law remains unresolved in the federal courts.

A similar dispute is playing out in New York. Despite a lawsuit brought by Attorney General Letitia James, the Commodity Futures Trading Commission ordered Kalshi in August to continue its operations. Kalshi also filed a lawsuit in June against Minnesota's law that bans prediction markets and makes them a criminal offense.