A Louisiana state judge has ordered Kalshi, Polymarket US, Coinbase, Robinhood, Gemini, Crypto.com and other prediction market operators to stop offering event contracts to anyone in the state and to geofence Louisiana, hours after Attorney General Liz Murrill sued them. The ex parte temporary restraining order, signed on Thursday without the companies being heard, puts two of the largest U.S. crypto exchanges in the same order as the prediction market specialists.
What the Louisiana restraining order says
Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa Parish signed the order on Nov. 12, according to the four pages Murrill released with her announcement. The clerk’s stamp shows the state’s petition was received electronically that morning, so the order came the same day the case was filed.
The defendants are restrained from operating, offering, listing, clearing, settling, brokering or making a market in any “event contract” for people located in Louisiana without a state gaming license. The order defines event contracts broadly, covering those tied to sports, elections and awards events, and it reaches each company’s officers, employees and anyone acting in concert with them who has actual knowledge of it.
The companies must also:
- stop accepting wagers from, or allowing market access to, anyone in Louisiana;
- geofence the state so the offerings cannot be reached there; and
- stop telling people in Louisiana that their contracts are lawful, licensed or authorized in the state.
Johnson wrote that the petition “makes clear that Defendants are currently violating La. R.S. 14:90.3,” the state’s gambling-by-computer law. He required no bond and found that no advance notice was needed because the state had certified that the harm was immediate and ongoing. That finding rests on the state’s filing alone. A restraining order of this kind is not a ruling on the merits.
Who is named
The caption lists more than two dozen entities. Besides five Kalshi companies and QCX LLC, which does business as Polymarket US, it lists Robinhood Markets and Robinhood Derivatives, ForecastEx, Crypto.com entities including North American Derivatives Exchange, Coinbase Global and Coinbase Financial Markets, Novig, three Underdog companies, IG Group, four Gemini companies including Gemini Titan and Gemini Trust, and ProphetX.
When Murrill announced the lawsuit on Thursday, she said the companies “have violated our laws with impunity.” After the order was signed, she said that “if you aren’t a licensed gaming operator, you aren’t legal” and that illegal gambling “is subject to jail time and significant penalties.” Louisiana is the 11th state to sue one or more prediction markets, The Block reported.
The platforms say federal law decides
The companies argue that event contracts listed on CFTC-regulated exchanges fall under federal commodities law, not state gambling statutes. A Robinhood spokesperson told The Block that its event contracts “are federally regulated by the CFTC” and offered through Robinhood Derivatives, a CFTC-registered entity. A Coinbase spokesperson said the suit, “filed while multiple federal appellate courts actively consider the same issues, is another example of the fragmented enforcement Congress sought to prevent.” The Coalition for Prediction Markets called it “troubling and unlawful.”
Kalshi had seen this coming. It sued Murrill and other Louisiana officials in the Western District of Louisiana on Oct. 23, and on Thursday it asked that court for its own restraining order to stop the state from acting against its exchange. Jovy Dedaj, Kalshi’s head of litigation, said that “the operation of federally-regulated exchanges is the exclusive province of the federal government.” The federal judge had not ruled on Kalshi’s request as of Thursday evening, and Kalshi users in Louisiana could still buy contracts at that point, RG reported, citing The Advocate. Polymarket US filed its own federal suit against the state on Oct. 27.
The race between the two courts matters. A federal judge can sometimes block a state from starting enforcement, but halting a state case that is already under way is a much harder request. Apart from Kalshi and Polymarket US, the defendants have no federal case of their own against Louisiana, so for now the parish court is the only forum they have.
Why it lands on crypto exchanges
Much of the state-level fight over prediction markets has centered on Kalshi and sports-focused apps. This order names Coinbase, Gemini and Crypto.com alongside them, which means crypto exchanges that have moved into event contracts now face geofencing duties and possible penalties in a state where some of them also serve crypto customers. Those same companies are already dealing with pressure from Washington. Kalshi recently confirmed a CFTC warning over its contract filings, and the agency that is supposed to defend federal jurisdiction is down to a single commissioner.
What happens next
The order expires at the same hour on the tenth day after it was issued, which by its terms is Nov. 22, unless the court extends it or the companies agree to a longer period. A hearing on the state’s request for a preliminary injunction is set for Nov. 30, so an extension will be needed to keep the order alive until then. Before that, watch whether the platforms block Louisiana users, whether the federal court in Kalshi’s case rules on its emergency motion, and whether any defendant tries to move the state case into federal court.
FAQ
What does the Louisiana restraining order require?
It bars the named companies from offering or facilitating event contracts for anyone located in Louisiana without a state gaming license, requires them to geofence the state, and stops them from claiming the contracts are lawful there.
Which crypto companies are named?
Coinbase Global and Coinbase Financial Markets, four Gemini companies including Gemini Titan, and Crypto.com entities are named alongside Kalshi, Polymarket US, Robinhood and others.
How long does the order last?
Ten days from Nov. 12 unless extended by the court or by agreement. A preliminary injunction hearing is scheduled for Nov. 30.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
