Key Highlights
- A Louisiana court has temporarily barred Kalshi, Polymarket, Coinbase, Robinhood and affiliated entities from offering prediction market contracts to state residents without a valid gaming license.
- The order prohibits the companies from operating, listing, accepting, settling, brokering or facilitating event contracts involving Louisiana residents.
- Covered activities include contracts tied to sports, elections, awards events and other uncertain outcomes, with defendants required to block Louisiana users through geofencing.
Louisiana Court Restricts Prediction Markets Without Gaming Licenses
A Louisiana court has issued an ex parte temporary restraining order preventing Kalshi, Polymarket, Coinbase, Robinhood and dozens of affiliated entities from offering or facilitating prediction market contracts for Louisiana residents unless they hold a valid state gaming license.
The order bars the defendants from operating, listing, accepting, settling, brokering or otherwise facilitating event contracts involving people in Louisiana. It also prohibits the companies from accepting wagers or allowing Louisiana residents to access the affected markets.
Companies Ordered to Block Louisiana Users
Under the temporary restraining order, the defendants must use geofencing to block users located in Louisiana. The order also prohibits the companies from representing that their offerings are lawful, licensed or authorized under Louisiana state law.
The defendants named in the order include Kalshi, Polymarket, Coinbase and Robinhood, as well as Crypto.com, Novig, Underdog, ForecastEx, IG Group, Gemini and ProphetX. The action therefore applies not only to major prediction market platforms and financial technology companies, but also to a broader group of affiliated entities involved in offering or facilitating event contracts.
Sports, Elections and Other Event Contracts Covered
The order broadly defines event contracts as wagers involving money or other value placed on uncertain outcomes. Its scope covers contracts related to sports, elections, awards events and other forms of wagering.
As a result, the restrictions address the underlying activity rather than a single type of prediction market. Companies covered by the order cannot provide Louisiana residents with access to markets that fall within the order’s definition unless they have the required gaming license.
Why This Matters
The Louisiana order creates a direct compliance requirement for prediction market operators and affiliated platforms serving residents of the state. Companies named in the action must prevent access from Louisiana and avoid claims that their offerings are authorized under state law while the temporary restrictions remain in effect.
The case also highlights the regulatory significance of event contracts that involve money or other value and uncertain outcomes. By expressly including sports, elections, awards events and other wagering activities, the order establishes a broad framework for the activities covered by the court’s restrictions.
Frequently Asked Questions
Which companies are affected by the Louisiana order?
The defendants include Kalshi, Polymarket, Coinbase, Robinhood, Crypto.com, Novig, Underdog, ForecastEx, IG Group, Gemini and ProphetX, along with dozens of affiliated entities.
What does the temporary restraining order prohibit?
It prohibits the defendants from operating, listing, accepting, settling, brokering or facilitating event contracts involving Louisiana residents. It also bars them from accepting wagers or allowing Louisiana users to access the markets.
What types of contracts are covered?
The order covers wagers involving money or other value placed on uncertain outcomes, including contracts related to sports, elections, awards events and other forms of wagering.
