Louisiana has secured a temporary restraining order against 10 prediction market and trading companies after Attorney General Liz Murrill filed a state lawsuit accusing them of offering illegal gambling products.
The case was filed in the 21st Judicial District Court in Tangipahoa Parish. Murrill sought immediate relief, and the judge granted a 10-day order the same day.
The restriction covers sports event contracts as well as markets involving elections and awards. It also bars the affected companies from accepting wagers or advertising covered products in Louisiana and requires geofencing to block users in the state.
“For too long, (prediction platforms) have violated our laws with impunity,” Murrill wrote in a post on X. “No longer.”
The state is also seeking a longer injunction, restitution, disgorgement and civil penalties.
Lawsuit Targets a Broad Group of Operators
The defendants include Kalshi, Polymarket, ForecastEx, Gemini Titan, Novig, ProphetX and Underdog, along with Coinbase, Crypto.com and Robinhood.
Louisiana argues that the contracts fall under state gambling law even when operators classify them as derivatives products.
“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.”
The state had already taken a position against sports event contracts before the latest lawsuit. In December 2025, the Louisiana Gaming Control Board issued a notice declaring them illegal gambling.
Louisiana also expanded its laws in 2026 by broadening the definition of “gambling by computer” and making certain violations subject to racketeering provisions.
Former Louisiana Gaming Control Board Chairman Ronnie Jones supported the state’s action.
“States have been vigilant at poking holes in that dam and by one count have won almost 90% of court challenges in state and federal venues.” Jones said Thursday. “I suspect at some point, the prediction markets will run out of fingers to poke in the holes.”
Kalshi and Polymarket Fight Back in Federal Court
The Louisiana case follows separate federal lawsuits filed by Kalshi and Polymarket.
Kalshi sued Murrill, Gov. Jeff Landry and state gaming regulators in October, arguing that Louisiana was attempting to regulate activity governed by federal law. After the state filed its lawsuit, Kalshi sought a preliminary injunction in federal court.
As SBC Americas reports, Kalshi Head of Litigation Jovy Dedaj said:
“Earlier today, @Kalshi filed for a preliminary injunction against the State of Louisiana for its unlawful attempt to stop Kalshi from operating in the state. The operation of federally-regulated exchanges is the exclusive province of the federal government. Full stop,”
He added:
“People benefit from free and fair markets. From Wall Street to New Orleans, Kalshi has been hit with anticompetitive litigation designed to take that choice away from them.
“The gaming industry is dead-set on a future where it can use predatory tactics like banning winners and using AI to target its own customers to maximize their losses. We’re proud to fight against that future.”
Polymarket filed its own complaint in the Eastern District of Louisiana, arguing that the Commodity Exchange Act preempts state enforcement and that Louisiana’s licensing structure violates the Commerce Clause.
The Coalition for Prediction Markets also criticised the state’s approach.
“Louisiana’s attack on this industry is a troubling and unlawful attempt to assert state authority over markets governed by federal law that would only cut off people’s access to an important tool for gathering market information, expressing informed views, and hedging risks based on their own expertise,” a spokesperson said.
Louisiana Adds to National Legal Split
The dispute now brings prediction market litigation into the Fifth Circuit, which covers Louisiana, Texas and Mississippi.
Other federal appeals courts have reached different conclusions on related issues. The Third Circuit has sided with Kalshi in litigation involving New Jersey, while the Sixth and Ninth Circuits have issued decisions against the company in separate cases.
New Jersey has asked the US Supreme Court to review its Third Circuit case.
Other states have also increased enforcement. Arkansas has sued Kalshi, while Arizona and Utah have pursued criminal cases involving prediction market officials.
Louisiana’s lawsuit is notable for targeting multiple operators in one state action and securing immediate relief through the temporary restraining order.
For now, the 10-day order limits covered prediction market activity in Louisiana while the courts continue to consider whether these contracts fall primarily under federal derivatives law or can also be restricted under state gambling statutes.