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Louisiana judge issues temporary restraining order against 10 prediction market operators

The order prohibits the companies from offering event contracts in the state for 10 days.

Cole Harrington · Editor-in-Chief
November 14, 2026 · More from this writer

TANGIPAHOA · A Louisiana judge has issued a temporary restraining order against 10 prediction market and trading companies, prohibiting them from offering event contracts in the state for 10 days. The order was granted hours after state Attorney General Liz Murrill filed a lawsuit accusing the firms of violating Louisiana gaming laws. The defendants include Kalshi, Polymarket, Robinhood, Crypto.com, Coinbase, Novig, Underdog, Gemini, ForecastEX, and ProphetX. District Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa granted the order, which expires in 10 days unless extended.

Murrill praised the court's decision, saying it bans the companies "from continuing their unlicensed and unregulated illegal gambling in Louisiana." She later wrote on social media that "illegal gambling is a crime and is subject to jail time and significant penalties." Murrill stressed that the operators' attempts "to make up new words to evade state gambling laws, regulators, and taxes are not fooling anyone." In his ruling, Johnson said Murrill was entitled to immediate relief and agreed the defendants' "illegal conduct is immediately and irreparably harming the State in its sovereign capacity, as well as its citizens."

The restraining order prohibits the exchanges from offering, listing, clearing, settling, brokering, or market making of unlicensed event contracts in Louisiana. It bans accepting wagers from Louisiana users and requires mandatory geofencing to block access in the state. The order also bars companies from representing that their event-contract offerings are lawful, licensed, or authorized in Louisiana. Johnson referred to "event contracts" as "also known as a wager," covering sports, elections, awards and other contracts.

Kalshi responded by filing for a preliminary injunction against the state in U.S. District Court for the Western District of Louisiana. In its filing, Kalshi argued the Commodity Exchange Act grants the Commodity Futures Trading Commission "exclusive jurisdiction" over the contracts and that federal law preempts state laws. "Based on recent discussions with representatives of the state of Louisiana, Kalshi believes that the state will initiate an action against Kalshi in state court to restrict Kalshi from operating in Louisiana," the lawsuit reads. Kalshi Head of Litigation Jovy Dedaj said the operation of federally-regulated exchanges is "the exclusive province of the federal government. Full stop."

Gaming attorney Daniel Wallach said Murrill's lawsuit made prediction market litigation history as the "first state to sue virtually the entire industry in one action and first to secure a TRO on the filing date." He noted the sweeping order could also subject market makers to enforcement action. The Coalition for Prediction Markets criticized the state's approach, calling it "a troubling and unlawful attempt to assert state authority over markets governed by federal law." The state's lawsuit argues that the contracts constitute gambling under Louisiana law, which had already taken a position against sports event contracts. In December 2025, the Louisiana Gaming Control Board issued a notice declaring them illegal gambling, and the state expanded its laws in 2026. Former Louisiana Gaming Control Board Chairman Ronnie Jones supported the state's action, saying, "I suspect at some point, the prediction markets will run out of fingers to poke in the holes." A preliminary hearing on the state's motion for a longer injunction is scheduled for November 30. The dispute brings prediction market litigation into the Fifth Circuit, while other federal appeals courts have reached different conclusions on related issues. Other states, including Arkansas, Arizona and Utah, have also increased enforcement against prediction markets.