A Louisiana state judge has temporarily barred prediction market platforms from offering event contracts to residents without a state license, hours after Attorney General Liz Murrill sued 31 entities across multiple platforms.
Judge Jeffrey Johnson signed an ex parte temporary restraining order on November 12 in Tangipahoa Parish, barring companies including Kalshi, Polymarket U.S., Robinhood, Coinbase, Crypto.com, Gemini, Underdog, Novig, ProphetX, Forecastex and IG Group from offering or facilitating event contracts related to sports, elections, awards and other activities classified as sports wagering under Louisiana law.
The order also requires the companies to geofence Louisiana and prohibits them from claiming their products are lawful or authorized in the state. The temporary restraining order expires after ten days unless extended by the court or agreed to by the defendants. A preliminary injunction hearing is scheduled for November 30.
Federal vs. State Authority
The Louisiana order conflicts with recent guidance from the Commodity Futures Trading Commission. On November 5, the CFTC directed exchanges to end state-level geographic restrictions within 30 days, stating that such restrictions are inconsistent with federal law and the CFTC's impartial access requirements.
Kalshi, one of the named platforms, had already filed suit in federal court on October 23, arguing that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over contracts traded on federally-regulated exchanges. On November 12, Kalshi requested a federal restraining order, citing imminent criminal and administrative exposure under state law. A ruling on that federal request had not appeared on the docket as of Friday morning.
Attorney General Murrill stated that operating prediction markets without a state license constitutes illegal gambling, which carries penalties including fines up to $100,000 and up to five years in prison under Louisiana law.
Louisiana joins more than a dozen other states that have taken legal action against prediction market companies in recent months.
