Louisiana judge orders sweeping 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 for residents of the state without a valid gaming license.

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

The ex parte temporary restraining order prohibits the companies from operating, listing, accepting, settling, brokering or otherwise facilitating event contracts involving Louisiana residents. It also bars them from accepting wagers or allowing market access to people in the state, requires them to block Louisiana users through geofencing, and prohibits representations that 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, alongside Kalshi, Polymarket, Robinhood and Coinbase. The order broadly defines event contracts as wagers involving money or other value placed on uncertain outcomes, covering 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 demonstrated ongoing violations of state gambling laws and immediate, irreparable harm to the state and its citizens. The court also determined that the public interest and balance of equities supported 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’s issuance unless the court extends them or the defendants consent 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 must hold a gaming license to legally offer gambling in Louisiana. She argued that prediction market operators are offering gambling products under different terminology to avoid state laws, regulators and taxes, adding that courts across the country have largely characterized such activities as gambling.