Key Takeaways
- A Tangipahoa Parish judge signed a restraining order against 31 entities on Nov. 12.
- The order covers contracts on sports, elections and awards, and requires the firms to geofence Louisiana.
- A preliminary injunction hearing is set for Nov. 30; Kalshi’s own federal bid to block the state is pending.
Judge Bars Event Contracts Without a State License
Murrill filed suit on Thursday, Nov. 12, in the 21st Judicial District Court in Tangipahoa Parish. The petition names 31 entities across about a dozen platforms, including Kalshi, QCX LLC (which does business as Polymarket U.S.), Robinhood, Coinbase, Crypto.com, Gemini, Underdog, Novig, ProphetX, Forecastex and IG Group.
Judge Jeffrey Johnson signed an ex parte temporary restraining order the same afternoon, according to a copy Murrill posted on X. It bars the companies from offering or facilitating any “event contract” (“also known as a wager”) to anyone located in Louisiana without a state license. The order defines those contracts as including “those related to sports, elections, awards events, and all others considered sports wagering under La. R.S. 27.”
The companies are also barred from “failing to geofence the State of Louisiana,” and from telling Louisiana customers that their products are “lawful, licensed, or authorized in Louisiana.” The order also binds people “in active concert or participation” with the defendants who know about it.
The judge required no bond and no notice, writing that the defendants “immediately received constructive notice of the Petition through media and other outlets.” By its terms, the order expires on the tenth day after it was issued unless the court extends it or the defendants consent. A hearing on a preliminary injunction is set for Nov. 30.
“It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal,” Murrill said on X after the order was signed. “Illegal gambling is a crime and is subject to jail time and significant penalties.”
Kalshi Had Already Gone to Federal Court
Kalshi sued Murrill, Gov. Jeff Landry and the Louisiana Gaming Control Board in federal court in the Western District of Louisiana on Oct. 23, arguing that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over contracts traded on its exchange. Its complaint cites a December 2025 advisory notice in which the board said it “sees no defense to offering such activity pursuant to a CFTC license.” Gambling by computer can carry fines of up to $100,000 and up to five years in prison under state law, the complaint says.
On Nov. 12, Kalshi asked the federal court for its own restraining order. “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,” its lawyers wrote, adding that the company faces “imminent criminal, administrative, and forfeiture exposure.” No ruling had appeared on the docket as of Friday morning.
“The operation of federally-regulated exchanges is the exclusive province of the federal government. Full stop,” Kalshi’s head of litigation, Jovy Dedaj, said on X. As of 7 p.m. Thursday, Louisiana users could still trade on Kalshi, The Advocate reported. Kalshi and Polymarket did not immediately respond to the outlet’s requests for comment.
Order Clashes With CFTC’s Geoblocking Guidance
The geofencing requirement runs against CFTC guidance issued Nov. 5, which gave exchanges 30 days to end state-level geographic restrictions or explain why they can’t. “Geographic access restrictions are inconsistent with those purposes and the Act’s impartial access requirements,” CFTC Chairman Michael Selig said at the time. Kalshi made a similar argument in its October complaint, saying that if it stopped offering contracts to Louisiana residents, it would “inevitably violate” the CFTC’s impartial access requirement.
Louisiana is the latest state to move against prediction markets in court, with more than a dozen states having taken legal action against such companies. Earlier this week, Missouri’s attorney general counterclaimed against Novig under a federal anti-gambling law, as Polymarket U.S. sued her.
