Kalshi challenges Louisiana gambling laws in federal court

Kalshi has filed a federal lawsuit against Louisiana seeking to stop the state enforcing its gambling laws against the company's sports event contracts, which the state has designated as illegal gambling. The complaint was filed with the US District Court for the Western District of Louisiana on 23 October 2026, according to the filing as reported. Kalshi is seeking a temporary restraining order and preliminary and permanent injunctions.

The challenge targets House Bill 53 and House Bill 883, which were signed into law in May and took effect on 1 August 2026. Kalshi argues in its complaint that the state lacks the powers under its statutes to regulate what the company says is a federal matter. The company contends that complying with Louisiana's licensing requirements is incompatible with the federal framework under the Commodity Exchange Act and oversight by the Commodity Futures Trading Commission.

Kalshi says it expects enforcement action against its local operations, though no such action has been announced, and it is asking the courts to intervene. Louisiana has argued openly that sports event markets should be treated as a form of gambling. The original text of the legislation is intended to target unauthorised online casinos, sportsbooks and sweepstakes platforms, but Kalshi says its wording could be applied against the platform. The case is the first to be heard under the jurisdiction of the US Court of Appeals for the Fifth Circuit, according to the report.