CFTC sues Louisiana to void a state order that shut prediction markets out of the state

The CFTC and the US Justice Department sued Louisiana on 13 November in the federal court for the Eastern District of Louisiana. They ask the court to declare state gambling laws preempted for CFTC-regulated markets and to stop the state from enforcing or extending its order.

A day earlier, Attorney General Liz Murrill sued Kalshi, Robinhood and other platforms, and a state judge in Tangipahoa Parish signed a temporary restraining order against 31 entities tied to Kalshi, Polymarket, Coinbase, Robinhood and others. It bars event contracts on sports, elections and other events for Louisiana residents without a state licence, requires geofencing and expires after 10 days unless extended. Kalshi has cut off Louisiana users.

Louisiana is the 12th state the CFTC has sued over derivatives jurisdiction. Chair Michael Selig called the state suit "naked lawfare"; Murrill called his statements false. A preliminary injunction hearing is set for 30 November.