Louisiana judge bars prediction markets from taking event-contract wagers
Regulation1 min read
A Louisiana state judge issued a temporary restraining order barring Kalshi, Polymarket, Robinhood, Novig, Underdog, Crypto.com and other operators from offering event contracts to Louisiana residents. The order followed Attorney General Liz Murrill’s lawsuit alleging violations of state gambling laws; it requires geofencing and prohibits the companies from accepting wagers or facilitating access in the state.
A Louisiana state judge has temporarily ordered prediction-market operators to stop residents from betting on event contracts, including those involving sports and elections. The order came hours after Attorney General Liz Murrill sued the companies, alleging violations of Louisiana gambling laws.
Ten companies and their affiliates were named as defendants in the lawsuit, filed in Tangipahoa Parish’s 21st Judicial District Court. Coinbase and Robinhood appeared on the list alongside Kalshi, Polymarket, Novig, Underdog, Crypto.com, ProphetX, Rothera and Gemini.
The order bars companies from offering or listing unlicensed event contracts, as well as clearing, settling, brokering or making markets in them. It bars companies from taking wagers from Louisiana users or giving them market access, and requires geofencing to block access in the state. Companies cannot claim their event contracts are legal, licensed or authorised in Louisiana. Gaming lawyer Daniel Wallach said market makers could face enforcement action under the order.
Weeks before that action, Kalshi and Polymarket had sued Louisiana authorities over threatened action by Murrill and the Louisiana Gaming Control Board. The previous December, the board had sent gambling companies a letter warning that working with prediction markets could cost them their licences.