A Louisiana court has temporarily barred Kalshi, Polymarket, Coinbase, Robinhood and other operators from offering prediction market contracts in the state without a gaming license. A hearing on a preliminary injunction is set for November 30, while Kalshi's federal challenge is pending.
A Louisiana court has temporarily barred Kalshi, Polymarket, Coinbase, Robinhood and dozens of affiliated entities from offering or facilitating prediction market contracts for state residents without a valid gaming license.
What the restraining order blocks
The ex parte temporary restraining order prohibits operating, listing, accepting, settling or brokering event contracts involving Louisiana residents. It also requires geofencing of the state and bars the companies from representing that their offerings are lawful, licensed or authorized under state law.
Other defendants include Crypto.com, Novig, Underdog, ForecastEx, IG Group, Gemini and ProphetX. The order broadly defines event contracts as wagers on uncertain outcomes, covering sports, elections and awards events.
The judge granted Attorney General Liz Murrill's request after finding ongoing violations of state gambling laws and immediate, irreparable harm. The order was issued without prior notice or a bond.
Hearing set for November 30
The restrictions stay in place for 10 days unless the court extends them or the defendants consent to a longer period. The court scheduled a November 30 hearing at 9 a.m. on the state's request for a preliminary injunction.
Murrill said on X that operators offer gambling products under different terminology to avoid state laws, regulators and taxes. She also said courts across the country have largely characterized such activities as gambling.
Kalshi's federal suit and the CFTC geofencing guidance
Bitcoin.com reports that the petition names 31 entities and that Kalshi had already sued Murrill in federal court on Oct. 23. Kalshi argues that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over contracts traded on its exchange.
The geofencing requirement also runs against CFTC guidance issued Nov. 5, which gave exchanges 30 days to end state-level geographic restrictions or explain why they can't.
Sources: Crypto Briefing, Bitcoin News
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