Louisiana Bars Prediction Markets in Lawsuit Against Kalshi and Others

Louisiana Attorney General Liz Murrill filed a lawsuit against 31 entities, including Kalshi, Polymarket, Robinhood, and Coinbase, alleging that their event contracts are illegal wagers that violate state gambling laws and evade taxes. Following the filing on November 13, 2026, Judge Jeffrey Johnson of Tangipahoa Parish issued a temporary restraining order barring these platforms from offering prediction markets to Louisiana residents.

While Robinhood halted its contracts immediately, Kalshi notified users that the state ended their access without due process, though some reports indicated users could still trade on Friday. The legal action follows a separate federal lawsuit filed by Kalshi against Murrill two weeks prior, as the company argues its services are financial products regulated by the federal Commodity Futures Trading Commission, which should override state law.

This conflict is part of a broader national debate over whether prediction markets constitute federal financial products or state-regulated gambling. A formal hearing to determine if a preliminary injunction should replace the temporary order is scheduled for November 30, 2026.