Louisiana judge blocks 10 prediction market operators as CFTC sues Arkansas

A Louisiana judge on Thursday temporarily barred 10 prediction market operators from offering event contracts in the state without required licenses, hours after Attorney General Liz Murrill sued them over alleged violations of state gambling laws.

District Judge Jeffrey Johnson issued the order in the 21st Judicial District Court in Tangipahoa Parish. It applies to Kalshi, Polymarket US, Robinhood, Crypto.com, Coinbase, Novig, Underdog, Gemini, ForecastEx and ProphetX.

The order covers contracts on sports, elections, awards and other outcomes. It bars activities including listing, accepting, clearing and selling the contracts, as well as market making, and requires operators to geofence Louisiana to prevent access to prohibited contracts.

The companies are also prohibited from representing that their event-contract offerings are lawful, licensed or authorized in Louisiana, CDC Gaming Reports reported.

Johnson granted the order without notice to the companies, InGame reported. The judge said the state had shown immediate and irreparable injury was ongoing.

The restraining order lasts 10 days and expires Nov. 22 unless extended, according to InGame. A preliminary injunction hearing is scheduled for November 30. Louisiana also seeks restitution, disgorgement of profits and civil penalties.

The geofencing requirement follows a Commodity Futures Trading Commission announcement that exchanges must stop geofencing states by Dec. 5 or explain why they cannot, InGame reported. The regulator said blocking certain states violates its principle of impartial access. It is unclear whether the CFTC will accept state court orders as a reason to geofence.

Kalshi, which sued Louisiana officials in late October, filed an emergency motion Thursday for a temporary restraining order and preliminary injunction in federal court. The company argues that its contracts are federally regulated derivatives and that the CFTC has exclusive jurisdiction over trading on its exchange.

The CFTC separately sued Arkansas over its enforcement action against Kalshi, arguing that federal law preempts state gambling laws governing event contracts, Gambling Insider reported. Arkansas Attorney General Tim Griffin had sued Kalshi under the state’s Deceptive Trade Practices Act, according to Covers.

The CFTC seeks preliminary and permanent injunctions against Arkansas’ existing enforcement action and future proceedings involving federally regulated exchanges. Arkansas is the 11th state the agency has sued over prediction market enforcement, according to Gambling Insider.