Three Exchanges, Three States, One Week: The Industry Sued Back
For months, the courtroom traffic ran one way: states sued prediction markets. In the last week of October, the exchanges flipped the script. Between October 26 and 27, Nadex, Kalshi and Polymarket US each walked into a different federal court and sued a state of their own.
Polymarket US moved in Louisiana. Its operator, QCX LLC, sued Attorney General Liz Murrill and the Gaming Control Board on October 27 in the Eastern District of Louisiana, case No. 2:26-cv-02482, arguing the Commodity Exchange Act preempts state enforcement and that the state's stance violates the Commerce Clause. The complaint points to a December 5, 2025 advisory calling sports event contracts illegal gambling, and notes the state's 20 sports wagering licenses go first to in-state casino and racetrack licensees.
Kalshi took Missouri the same day. KalshiEX LLC sued Attorney General Catherine Hanaway and the Gaming Commission in the Eastern District of Missouri, case No. 4:26-cv-01860, on a single claim: federal preemption under the Supremacy Clause. Missouri's September 16 cease-and-desist called Kalshi an unlicensed sports wagering platform and gave it 14 extra days to comply; Kalshi will seek a preliminary injunction, and a restraining order if the state will not stand down.
The third front is Utah, where North American Derivatives Exchange, trading as OG.com Prediction Markets, sued Attorney General Derek Brown on October 26 in the District of Utah, case No. 2:26-cv-01056, before Judge David Barlow. A CFTC-designated contract market since 2004, Nadex launched OG.com in February 2026 and raises express, field and conflict preemption. The same week, the United States and the CFTC sued Utah themselves, days after Utah sued Kalshi on October 20, and Kalshi separately sued Louisiana officials on October 23. The CFTC is now battling 10 states in court.
One federal rulebook or fifty state ones is no longer a panel argument. It is being litigated simultaneously by the regulator and by three competing exchanges that agree on almost nothing else.
Sources: RG, CoinDesk
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