After a Louisiana judge issued a temporary restraining order ordering websites to stop offering prediction markets, Kalshi customers in the state received a message from the company on Friday saying, “Your government says you can no longer use Kalshi.” »
“Without a hearing, notice, or due process, the State has decided to terminate Louisiana’s access to every market you enjoy trading in,” the notice said.
Users could still purchase event contracts, however.
Attorney General Liz Murrill on Thursday sued Kalshi, Polymarket, Robinhood and many other websites offering event contracts, which allow users to place money on the outcome of specific events.
Murrill contends the contracts are essentially wagers, which violate Louisiana’s gambling laws. The companies say they offer financial products that are regulated by the federal government, not the states.
Hours after Murrill filed the suit, Tangipahoa Parish Judge Jeffrey Johnson issued a temporary restraining order banning the websites from offering prediction markets in Louisiana.
“It’s not complicated: If you’re not a licensed gaming operator, you’re not legal,” Murrill said in a statement regarding the decision. “Illegal gambling is a crime punishable by prison time and significant penalties. Judges across the country have overwhelmingly called this activity what it is: gambling.”
Murrill’s lawsuit comes after Kalshi sued the attorney general and other Louisiana officials in federal court two weeks ago, arguing that the state had no authority to regulate its gambling services. In that federal case, Kalshi sought his own injunction against Murrill and others in a filing Thursday, but a judge has not yet ruled on that issue.
This is a developing story. Come back for more later.
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