Louisiana Court Issues Restraining Order Against Major Prediction Market Operators

A Louisiana court has issued a temporary restraining order against several major prediction market operators, including Kalshi, Polymarket, Coinbase, and Robinhood. The order bars these companies from offering or facilitating prediction market contracts for residents of Louisiana without a valid gaming license.

The ex parte temporary restraining order prohibits the companies from operating, listing, accepting, settling, brokering, or facilitating event contracts involving Louisiana residents. It also requires them to block access for Louisiana users through geofencing and forbids any representations that their offerings are lawful under state law.

The court's decision came after Louisiana Attorney General Liz Murrill argued that these operators were circumventing state gambling laws by using different terminology for their products. The judge found that the state demonstrated ongoing violations of gambling laws and that the public interest supported the restrictions. The order is set to remain in effect for 10 days unless extended or agreed upon by the defendants.

A hearing has been scheduled for November 30 to consider the state’s request for a preliminary injunction.