Louisiana Judge Issues Order Barring Prediction Markets in State

Kalshi customers in Louisiana received a message on Friday stating, “Your government says you can’t use Kalshi anymore,” following a judge’s order to halt prediction market offerings in the state.

A temporary restraining order issued by Judge Jeffrey Johnson of Tangipahoa Parish bars websites from offering event contracts to Louisiana residents. The ruling follows a lawsuit filed Thursday by Attorney General Liz Murrill against Kalshi, Polymarket, Robinhood, and several other platforms that allow users to trade on the outcomes of specific events.

“It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal,” Murrill said in a statement regarding the ruling.

The legal battle centers on whether these event contracts constitute regulated financial products or illegal gambling. While the companies maintain their services are federally regulated financial instruments, the state argues they are essentially bets that violate Louisiana’s gambling laws.

Attorney General Murrill contends that the activity is gambling and is subject to criminal penalties.

“Illegal gambling is a crime and is subject to jail time and significant penalties. Judges all over the country have overwhelmingly called this activity what it is: gambling,” Murrill said.

The companies involved argue that they offer financial products under federal jurisdiction rather than state-level gambling authority. This dispute follows a move by Kalshi two weeks ago, when the company sued Murrill and other Louisiana officials in federal court to contest the state’s authority to regulate its services.

In that federal filing, Kalshi sought a restraining order against the state officials, but a judge has not yet ruled on that specific request. Despite the restraining order, Kalshi reported that users were still able to buy event contracts following the notice.

The immediate impact of the court’s decision affects users who trade on political, economic, or social outcomes through these platforms. The core of the conflict remains whether these markets function as a tool for price discovery and hedging or as a high-stakes betting arena.

“Without a hearing, notice, or due process, the state has decided to end Louisiana’s access to all of the markets you love to trade,” the notice from Kalshi told its customers.

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