Louisiana Judge Blocks Kalshi and Polymarket Contracts
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A Louisiana state judge has temporarily barred Kalshi, Polymarket, Coinbase, Robinhood and dozens of affiliated entities from offering or facilitating prediction market contracts to residents without a valid state gaming license, Crypto Briefing reported on Nov. 13.
According to Crypto Briefing, the ex parte temporary restraining order stops the companies from operating, listing, accepting, settling, brokering or otherwise facilitating event contracts involving Louisiana residents, requires them to block state users through geofencing, and bars them from telling customers their offerings are lawful, licensed or authorized under state law.
Key facts
- Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa Parish signed the order on Nov. 12, the same afternoon Attorney General Liz Murrill filed suit, according to Bitcoin.com News.
- The petition names 31 entities across about a dozen platforms, including Kalshi, QCX LLC (doing business as Polymarket U.S.), Robinhood, Coinbase, Crypto.com, Gemini, Underdog, Novig, ProphetX, Forecastex and IG Group.
- The order defines covered contracts as including those tied to sports, elections, awards events and all others considered sports wagering under La. R.S. 27.
- By its terms, the order expires on the tenth day after issuance unless extended by the court or consented to by the defendants; a preliminary injunction hearing is set for Nov. 30.
- The judge required no bond and no notice, writing that the defendants immediately received constructive notice of the petition through media and other outlets.
What the order requires
Beyond the licensing bar, the order prohibits the companies from failing to geofence Louisiana and from accepting wagers or allowing market access to people in the state. Crypto Briefing reported that the judge found the state’s petition demonstrated ongoing violations of state gambling laws and immediate, irreparable harm to the state and its citizens, and determined that the public interest and balance of equities supported the restrictions.
Murrill framed the case as a licensing question. “It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal,” she said on X after the order was signed, according to Bitcoin.com News, adding that illegal gambling is a crime subject to jail time and significant penalties.
Kalshi’s federal case, filed first
Kalshi had already gone to federal court. Bitcoin.com News reported that the company sued Murrill, Gov. Jeff Landry and the Louisiana Gaming Control Board in the Western District of Louisiana on Oct. 23, arguing that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over contracts traded on its exchange. Its complaint cites a December 2025 advisory notice in which the board said it sees no defense to offering such activity under a CFTC license, and notes that gambling by computer can carry fines of up to $100,000 and up to five years in prison under state law.
On Nov. 12, Kalshi asked the federal court for its own restraining order, warning of imminent criminal, administrative and forfeiture exposure. No ruling had appeared on the docket as of Friday morning, per Bitcoin.com News. “The operation of federally-regulated exchanges is the exclusive province of the federal government,” Kalshi’s head of litigation, Jovy Dedaj, said on X. “Full stop.”
Clash with CFTC geoblocking guidance
The geofencing requirement puts the state order at odds with federal guidance. Bitcoin.com News reported that the CFTC issued guidance on Nov. 5 giving exchanges 30 days to end state-level geographic restrictions or explain why they can’t, with Chairman Michael Selig saying such restrictions are inconsistent with the Act’s impartial access requirements. Kalshi made a related argument in its October complaint.
The two outlets describe the scope of the order slightly differently: Crypto Briefing lists Gemini, ProphetX and additional operators among the defendants, while Bitcoin.com News counts 31 entities and names the same core platforms, with Kalshi and Polymarket both identified. As of 7 p.m. Thursday, Louisiana users could still trade on Kalshi, The Advocate reported, according to Bitcoin.com News.
Why it matters
Louisiana is at least the thirteenth state to take legal action against prediction market operators, and its order is a direct test of whether a federal CFTC license overrides state gaming law. For users in the state, the practical effect is a possible service cut-off within days, while exchanges decide whether to comply or litigate. The timing sharpens the conflict because the CFTC has just told exchanges to drop geographic blocks — guidance that, if followed, would put them on the wrong side of this order.
What to watch
The Nov. 30 hearing on the state’s request for a preliminary injunction will decide whether the restrictions hold beyond the ten-day window. Kalshi’s separate federal request for a restraining order remains undecided on the docket.
Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.
Sources: Crypto Briefing, Bitcoin.com News
