Louisiana judge orders sweeping restraining order against Kalshi, Polymarket, Coinbase, and other prediction market operators

A Louisiana state judge issued a sweeping temporary restraining order against Kalshi, Polymarket, Coinbase and other prediction market operators, escalating regulatory scrutiny of event-based contracts in the U.S. The order signals that state-level challenges could reshape how these platforms operate nationwide, potentially forcing changes to product offerings or access for users in affected jurisdictions. The dispute centers on whether prediction market contracts fall under state gambling oversight or federal derivatives regulation, a question with significant stakes for the sector's growth. Kalshi, which has expanded aggressively into sports and election markets, and crypto-native Polymarket face the most direct exposure given their volume in event contracts. Watch for the next hearing on whether the restraining order is extended or converted into a preliminary injunction, and for responses from other states weighing similar action.