TLDR
- A Louisiana judge temporarily barred 30 prediction market firms from offering event contracts in the state.
- The order runs until Nov. 22 and may be extended by the court.
- A preliminary injunction hearing is set for 9 a.m. on Nov. 30.
- Kalshi says federally regulated exchanges fall only under federal oversight.
- More than a dozen states, including Utah and Washington, have taken legal action against prediction markets.
People in Louisiana can no longer use Kalshi, Polymarket, Robinhood and other platforms to bet on event contracts, at least for now. A state judge issued a temporary order on Thursday that blocks 30 companies from offering the contracts to anyone in the state.
The order came only hours after Louisiana Attorney General Liz Murrill sued the firms. Her office claims the companies broke state gambling laws by taking wagers without a gaming license. It argues that event contracts are wagers, not federal financial products.
State District Judge Jeffrey Johnson of Tangipahoa Parish signed the order shortly before 4 p.m. Central time. It runs until Nov. 22, though the court has the option to extend it.
A Fast Ruling With a Set Timeline
Johnson ruled without hearing arguments from the companies. He set a preliminary injunction hearing for 9 a.m. on Nov. 30, when both sides can make their case.
In his order, the judge wrote that the state’s petition showed the companies were allegedly violating a law against unauthorized online gambling. He also said the alleged conduct was causing immediate and irreparable harm to the state and its residents.
Johnson added that the public interest strongly supported quick action. Murrill, a Republican, made the order public by posting it on X.
“It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal,” Murrill said. She added that illegal gambling is a crime that can lead to jail time.
Prediction markets let users buy contracts tied to real events. These range from sports games to elections and world events such as the war in Iran. Platforms like Kalshi and Polymarket have grown fast in recent years.
Democratic lawmakers have raised concerns about the platforms. Their worries include insider trading, market manipulation and gambling addiction.
Kalshi Says Federal Law Comes First
Kalshi had already taken the fight to court. The company filed a federal lawsuit against Murrill about two weeks before the state acted. It argues that federal exchanges fall solely under federal oversight.
Jovy Dedaj, head of litigation at Kalshi, said the company has asked for a temporary restraining order and preliminary injunction against the state. A ruling on that request has not yet been made.
“The operation of federally regulated exchanges is the exclusive province of the federal government. Full stop,” Dedaj said on social media. Kalshi users reportedly could still trade in Louisiana as of Thursday evening.
Industry groups also pushed back. Cody Carbone, CEO of the Digital Chamber, called the lawsuit “outrageous” and said his group would fight it for its prediction market members.
The Coalition for Prediction Markets, a trade group based in Washington, D.C., called the suit “a troubling and unlawful attempt” to apply state control over federally regulated markets. “That cannot stand,” the group said.
Louisiana is not alone. More than a dozen states, including Washington and Utah, have taken legal action against prediction market companies. Louisiana’s filing adds to that growing list.
Utah has filed 14 criminal counts against Kalshi following an undercover investigation by its attorney general. The Louisiana case now moves toward the Nov. 30 hearing, while Kalshi’s own request in federal court remains unresolved.
