Louisiana Judge Blocks Kalshi, Polymarket and Crypto Platforms in Illegal Gambling Suit
Louisiana's Attorney General calls prediction markets "illegal gambling", resulting in a temporary restraining order against Kalshi, Polymarket, and more by a court judge. Crypto platforms have been named too.
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A Louisiana judge has temporarily prohibited prediction markets such as Kalshi, Coinbase, Polymarket, Robinhood, and several others from operating in the state. Judge Jeffrey Johnson signed the temporary restraining order on November 12, 2026, just a few hours after Attorney General Liz Murrill filed suit. It expires in 10 days unless the court extends it or the defendants agree to a longer period.
The latest ruling is a major blow to prediction market operators in the state. They’ve already had troubles across other states, and Louisiana is the latest on the list. The ruling follows a lawsuit filed in the 21st Judicial District Court in Tangipahoa Parish by Louisiana Attorney General Liz Murrill. The AG sought immediate action on the matter, looking to put a halt to the operators’ activity.
The AG Praises the Court Order
Attorney General Murrill immediately praised the judge’s order in a statement.
“It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal. Illegal gambling is a crime and is subject to jail time and significant penalties,” Murrill said. “Judges all over the country have overwhelmingly called this activity what it is: gambling. Kalshi’s and the other operators’ attempts to make up new words to evade state gambling laws, regulators, and taxes are not fooling anyone.”
In short, the AG has provided a stern warning to unlicensed operators in the state of Louisiana. They can only operate in the state if they obtain the necessary licenses and pay taxes.
Key defendants in the filing include:
- Kalshi Inc.
- QCX LLC (doing business as Polymarket US)
- ForecastEx LLC
- Ludlow Exchange LLC (Novig)
- ProphetX Opco LLC (Prophet X)
Prediction markets aren’t the only defendants on the list. Financial and crypto platforms have been added, too, including:
- Robinhood Markets Inc.
- Coinbase Global Inc.
- Forix DAX Inc. (Crypto.com)
- Gemini Trust Company LLC.
Some sports and derivatives entries have been included as well.
- Underdog Sports Holdings Inc.
- North American Derivatives Exchange Inc.
- IG Group Holding PLC.
“In Today’s Market, Virtually Anything Can Become a Wager”
The Attorney General’s office has argued that virtually anything can become a wager in today’s market. The filing specifically pointed to KalshiEx’s platform as an example. It noted that users can place wagers on non-sporting events, including the recent midterm elections. Oscar winners and culture markets were cited, too.
Louisiana’s legal action and the restraining order comes only weeks after Kalshi filed a federal lawsuit on October 23 against top Louisiana leaders, including Governor Jeff Landry, the Attorney General, and members of the Louisiana Gambling Control Board.
In the federal suit, Kalshi sought to block the state from shutting down its sports contracts or charging the company under local gambling laws. Legal representatives argued that all of Kalshi’s contracts fall under federal instead of local oversight.
Not the First Lawsuit Against Prediction Markets
There’s been a recent string of lawsuits against prediction markets in several states, including Utah. Prediction markets have faced a lot of legal scrutiny over the contracts, which currently fall under the regulation of the Commodity Futures Trading Commission (CFTC).
These lawsuits and controversies have spilled outside courtrooms, with companies blocking employees from using insider knowledge to wager on such platforms. Hollywood has reportedly clamped down on employees from betting on Kalshi and Polymarket, putting even more pressure on this highly scrutinized activity.
