Louisiana sues ten prediction market operators over sports contracts

Louisiana's attorney general filed suit Thursday against Kalshi, Robinhood, Polymarket, and seven other prediction market operators, alleging they violated state gambling law by offering sports event contracts without a license.

The suit adds Louisiana to a growing list of states — including Kentucky, Missouri, Ohio, and Texas — that have moved against prediction market operators through litigation or legislation rather than waiting for federal resolution. The Sixth Circuit's September ruling, which held that Ohio and Tennessee could treat sports event contracts as gambling, appears to have encouraged attorneys general in other states to press similar claims.

The Louisiana action names ten defendants, the broadest state action against the sector to date. The complaint alleges that operators have been accepting wagers from Louisiana residents on sporting events while evading the licensing and consumer protection requirements that govern the state's regulated gambling market.

Separately, Reuters reported Thursday that Kalshi terminated Donald Trump Jr.'s advisory contract, citing a conflict of interest arising from his simultaneous involvement with Polymarket. The timing, coinciding with the Louisiana filing and a Demand Progress report documenting $1.8 million in Kalshi lobbying spend in the first half of 2026, illustrates how quickly the sector's political exposure is widening.