Louisiana Judge Blocks Kalshi, Polymarket and Robinhood Betting

A Louisiana judge has ordered Kalshi, Polymarket, Robinhood, Coinbase and other prediction market operators to stop offering event contracts to people in the state without a gaming license, granting an emergency request from Attorney General Liz Murrill in a lawsuit accusing the companies of illegal gambling.

Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa Parish issued the temporary restraining order on November 12, 2026, requiring the companies to block Louisiana customers from accessing covered contracts. The restrictions extend to wagers tied to sports, elections, entertainment awards, and other real-world events.

Murrill's lawsuit names companies affiliated with Kalshi, Polymarket, Robinhood, Coinbase, Crypto.com, Gemini, ForecastEx, Novig, Underdog and ProphetX. The state is seeking a preliminary injunctionpreliminary injunctionA preliminary injunction is a temporary court order issued before a case is finally decided that requires a party to take or stop an action while the litigation continues. Federal courts generally consider the likelihood of success, irreparable harm, the balance of equities, and the public interest before granting one.Read more → and civil penalties against businesses it accuses of offering gambling products without the licenses required under Louisiana law.

Kalshi moved to challenge the restrictions in federal court the same day, requesting an emergency restraining order and preliminary injunction against state enforcement. The filing followed an October 23 lawsuit in which the company sought to prevent Murrill and other Louisiana officials from applying state gambling laws to its federally regulated contracts.

Polymarket US filed a similar federal lawsuit on October 27, setting up competing proceedings over which government has authority to regulate prediction markets operating in Louisiana.

Kalshi and other platforms argue that event contracts traded on federally regulated exchanges fall under the exclusive authority of the Commodity Futures Trading Commission (CFTC). Louisiana maintains that contracts allowing customers to stake money on the outcomes of sporting events and other activities are subject to state gambling laws.

The platforms allow customers to purchase contracts whose value depends on whether an event occurs. Sports results, election outcomes and entertainment awards are among the events available for trading. The companies classify these products as financial derivatives, while state regulators argue that some contracts function as wagers requiring gambling licenses.

Robinhood has defended its event contracts as federally regulated products offered through Robinhood Derivatives, a CFTC-registered entity. Coinbase has also challenged state enforcement efforts, arguing that Congress placed event-contract regulation under federal authority.

Johnson granted the state's restraining order without first hearing arguments from the companies. The temporary restrictions precede a hearing on whether Louisiana can continue blocking the platforms while the lawsuit proceeds.

Louisiana joins a growing number of states pursuing prediction market operators over alleged gambling violations. New York has sued Kalshi over unlicensed gambling allegations, while Connecticut has challenged its sports betting contracts. New Jersey has also asked the U.S. Supreme Court to decide whether Kalshi must comply with state sports betting laws.

The Louisiana restraining order is set to expire November 22 unless extended. A hearing on the state's request for a preliminary injunction is scheduled for November 30 at 9 a.m., while Kalshi's separate federal challenge could affect enforcement of the state court restrictions.