A Tangipahoa Parish judge issued a temporary injunction on Thursday that stops several prediction‑market companies, including Kalshi, Polymarket and Robinhood, from doing business in Louisiana. The order follows a complaint filed by Attorney General Liz Murrill, who argues the platforms are operating without a state gaming license and therefore violate Louisiana’s gambling statutes.
Attorney General’s stance
Attorney General Murrill said, “It’s not complicated: If you aren’t a licensed gaming operator, you aren’t legal.” She added that the companies’ attempts to create new terminology to sidestep state gambling laws and taxes are “not fooling anyone.” Under Louisiana law, illegal gambling is a crime punishable by jail time and significant penalties.
What prediction markets are
Prediction markets, also called event contracts, allow users to wager on a wide range of outcomes—from which actor will play the next James Bond to future gas prices or whether the federal government will shut down next month. Some platforms also accept sports wagers, such as the number of times a particular performer appears on camera during a game.
Legal context across the country
Louisiana joins a growing list of states taking action against prediction markets. Nevada courts have previously ruled against the platforms, and Minnesota enacted the nation’s first law in May to prohibit such markets, though a federal court has temporarily blocked enforcement while the state appeals.
Federal regulators weigh in
Polymarket’s legal team argued in a filing with the U.S. District Court in New Orleans that its business falls under the jurisdiction of the Commodity Futures Trading Commission, which regulates prediction markets at the federal level. A Polymarket spokesperson reiterated that claim, stating the platforms are governed by a “federal framework, not a patchwork of state rules.”
Robinhood also noted that it is registered with the federal agency to allow customers to access prediction markets in a “safe, compliant, and regulated manner.”
Industry response
Kalshi’s head of litigation, Jovy Dedaj, posted on X that Louisiana’s move was an “unlawful attempt to stop Kalshi from operating in the state,” emphasizing that “the operation of federally regulated exchanges is the exclusive province of the federal government. Full stop.”
Next steps
The injunction will remain in effect until a further hearing scheduled for November 30. Meanwhile, U.S. District Judge Lance Africk, a Bush‑appointed federal judge, has been assigned to review Polymarket’s preemptive lawsuit against the state, though a hearing date has not yet been set.
Louisiana’s enforcement of its gambling statutes reflects a broader effort by state officials to protect residents from unlicensed wagering activities while ensuring that any betting platforms operating within the state comply with both state and federal regulations.
Original reporting: KTBS 3 (Shreveport) — read the source article.
