Louisiana Attorney General Liz Murrill filed suit against 31 entities operating prediction markets, alleging they run illegal online gambling operations. Judge Jeffrey Johnson signed a temporary restraining order on November 12 in the 21st Judicial District Court for Tangipahoa Parish, barring the named companies from offering event contracts to Louisiana residents. A preliminary injunction hearing is scheduled for November 30. The action adds Louisiana to a growing list of states — including New York, Kentucky, Connecticut, Nevada and Michigan — challenging prediction-market operators under state gambling laws.
Louisiana Attorney General Liz Murrill filed a lawsuit on November 12 against 31 corporate entities linked to prediction markets, crypto exchanges and sports-event contract platforms. The suit was filed in the 21st Judicial District Court for Tangipahoa Parish, with the state alleging the companies operated illegal online gambling operations.
Later that day, Judge Jeffrey Johnson signed an ex parte temporary restraining order at 3:48 p.m., temporarily barring the named companies from offering event contracts to Louisiana residents without required state authorization. The order was issued without prior notice to the defendants and is set to expire after 10 days unless extended. A hearing on the state’s request for a preliminary injunction is scheduled for November 30.
31 Entities Named in the Petition
The petition names Kalshi, QCX LLC (which operates as Polymarket US), Robinhood, ForecastEx, Crypto.com-related entities, Coinbase, Gemini, Novig, Underdog, IG Group and ProphetX. The filing also names affiliated companies including Coinbase Financial Markets, Crypto.com’s North American Derivatives Exchange and multiple entities connected to Kalshi and Polymarket.
Louisiana argues the platforms allow users to stake money on real-world outcomes including sporting events, elections, entertainment awards and economic indicators. The petition opens by arguing that “virtually anything can become a wager” on these platforms.
The state’s case rests on the argument that these contracts function as wagers under Louisiana’s gambling laws. The companies have generally maintained that their event contracts are financial products traded on federally regulated exchanges rather than conventional sports bets.
The state-level lawsuit follows legal action initiated by the platforms themselves. Kalshi sued Louisiana officials in federal court on October 23, seeking to prevent the state from enforcing its gambling laws against the exchange. QCX LLC filed a separate federal lawsuit against Louisiana officials on October 27.
Both companies argue the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over federally regulated event contracts. On November 12, Kalshi also sought its own temporary restraining order and preliminary injunction in its federal case, creating competing injunction efforts in separate proceedings.
Enforcement Actions Across Multiple States
Louisiana’s action adds to a wave of lawsuits and enforcement efforts targeting prediction-market operators across the United States. In New York, Attorney General Letitia James and Governor Kathy Hochul sued Kalshi in July, alleging it operated an unlicensed gambling business. New York also sued QCX in September over event contracts allegedly offered without required state authorization.
Kentucky sued Kalshi and Polymarket in June, alleging their sports-related contracts amounted to unlicensed sports betting. Connecticut followed with a lawsuit against Kalshi in August, raising allegations involving underage users and promotional activity.
Nevada obtained a temporary restraining order against Kalshi in March. Michigan secured a separate order in June barring the platform from offering sports-related event contracts to residents.
Federal Regulators Weigh In
The CFTC has challenged state efforts to restrict federally registered prediction markets. In October, the agency sued Utah after the state took legal action against Kalshi, arguing that Utah’s enforcement effort interfered with the CFTC’s authority over federally registered contract markets.
Courts have reached conflicting conclusions on the central legal question. In October, a federal judge in Illinois granted Kalshi and Coinbase Financial Markets a partial preliminary injunction, finding the sports event contracts at issue were likely swaps under the Commodity Exchange Act.
