Crypto /
Louisiana Slaps Kalshi, Polymarket, and Coinbase with Restraining Order
A Louisiana judge ordered prediction market platforms to stop serving state residents, citing violations of gambling laws. Here's what happened.
A Louisiana judge has issued a sweeping temporary restraining order against some of the biggest names in prediction markets, including Kalshi, Polymarket, Coinbase, and Robinhood, ordering them to stop serving Louisiana residents effective immediately.
The order, granted on Thursday, November 13, 2026, came at the request of Louisiana Attorney General Liz Murrill. The judge found the state's case showed ongoing violations of gaming laws and "immediate, irreparable harm" to the state and its citizens.
What the Order Actually Prohibits
The scope is broad. Under the restraining order, affected companies cannot operate, list, accept, settle, broker, or in any way facilitate event contracts involving Louisiana residents. They are also barred from accepting wagers or granting market access to anyone in the state.
On top of that, the order requires the companies to implement geofencing to block Louisiana users, and explicitly prohibits them from representing their products as lawful, licensed, or authorized under Louisiana law.
The full list of defendants goes well beyond the headline names. It includes Crypto.com, Novig, Underdog, ForecastEx, IG Group, Gemini, ProphetX, and others alongside Kalshi, Polymarket, Robinhood, and Coinbase.
The Core Legal Argument
Murrill's position is straightforward: Louisiana requires a gaming licence to offer gambling products, and prediction market operators are offering exactly that, just under different branding.
She posted on X on Thursday that these companies are using different terminology to sidestep state laws, regulators, and taxes. The order defines "event contracts" broadly, covering wagers on uncertain outcomes ranging from sports results and elections to awards show winners.
The restraining order was issued ex parte, meaning the defendants were not given prior notice before the judge signed it. No bond was required. The restrictions stay in place for 10 days unless the court extends them or the companies agree to a longer period. A hearing is scheduled for November 30, 2026, at 9 a.m. to consider whether a preliminary injunction should follow.
Why This Matters Beyond Louisiana
Prediction markets have been one of the fastest-growing corners of crypto-adjacent finance over the past few years. Platforms like Polymarket gained significant public attention during the 2024 U.S. election cycle, drawing millions in trading volume on political outcomes. That visibility also drew regulatory attention.
Louisiana's move is one of the more aggressive state-level actions yet, but Murrill's argument that "courts across the country have largely characterized such activities as gambling" signals this is not just a local dispute. If other state attorneys general take similar positions, platforms could face a patchwork of blocking requirements that significantly limits their U.S. user base.
For Canadian users and investors, the situation is worth watching closely. Several of the targeted platforms operate globally, and regulatory decisions in U.S. states often influence how Canadian regulators frame their own approach to novel financial products. Canadian crypto platforms and investors using these markets should monitor whether this Louisiana case prompts broader federal or cross-border action.
The November 30 hearing will be the next major signal. If the court converts the temporary order into a preliminary injunction, the legal fight gets longer and the business disruption for these platforms gets more serious.