Louisiana judge issues broad restraining order against Kalshi, Polymarket, Coinbase and other prediction market operators

A Louisiana court has temporarily barred Kalshi, Polymarket, Coinbase, Robinhood and dozens of affiliated entities from offering or facilitating prediction market contracts to state residents without a valid gaming license.

https://twitter.com/AGLizMurrill/status/2121027283058041287

The ex parte temporary restraining order bars the companies from operating, listing, accepting, settling, brokering or otherwise facilitating event contracts involving Louisiana residents. It also prohibits them from accepting wagers or giving people in the state access to the markets, requires them to use geofencing to block Louisiana users, and bars them from claiming their offerings are lawful, licensed or authorized under state law.

The defendants include operators such as Crypto.com, Novig, Underdog, ForecastEx, IG Group, Gemini and ProphetX, as well as Kalshi, Polymarket, Robinhood and Coinbase. The order broadly defines event contracts as wagers involving money or other value on uncertain outcomes, including sports, elections, awards events and other forms of wagering.

The judge granted Louisiana Attorney General Liz Murrill’s request for immediate relief, finding that the state’s petition showed ongoing violations of state gambling laws and immediate, irreparable harm to the state and its residents. The court also found that the public interest and balance of equities favored the restrictions, allowing the order to be issued without prior notice or a bond.

The restrictions will remain in place for 10 days after the order is issued unless the court extends them or the defendants agree to a longer period. The court scheduled a November 30 hearing at 9 a.m. to consider the state’s request for a preliminary injunction.

Murrill said on X on Thursday that companies need a gaming license to legally offer gambling in Louisiana. She argued that prediction market operators are using different terminology for gambling products to avoid state laws, regulators and taxes, and added that courts across the country have largely characterized these activities as gambling.