The Commodity Futures Trading Commission said Friday it had sued Louisiana and Arkansas over state efforts to regulate prediction markets. The cases arrive at different stages. Louisiana obtained a temporary court order Thursday restricting what platforms can offer to people in the state. Arkansas had sued Kalshi and asked a court for penalties and an injunction. The federal commission is asking courts to block both states from enforcing their laws against federally regulated exchanges.
Louisiana has a temporary court order
Judge Jeffrey Johnson of Louisiana’s 21st Judicial District Court in Tangipahoa Parish signed the order Thursday, after Attorney General Liz Murrill filed suit. It directs named companies, including Kalshi, Polymarket US and Robinhood entities, to block access from inside Louisiana to the event contracts covered by the order. Those include contracts tied to sports, elections and awards, according to Louisiana Illuminator reporting published by WWNO. The order was issued before the companies had a chance to respond.
The order lasts 10 days unless extended, and the state court scheduled a hearing for Nov. 30 on Louisiana’s request for a longer injunction. A separate federal lawsuit that Kalshi filed against Louisiana officials was already underway. In that case, Kalshi asked a federal judge Thursday for a temporary order against enforcement. The CFTC’s new Louisiana lawsuit is a separate federal challenge. The announcement described what the commission asked for, and did not report that a judge had granted it.
Kalshi displayed an in-app notice to Louisiana users Friday that said their access would end. Reporting on the notice also said some users could still purchase contracts at the time it was checked. The notice establishes that Kalshi warned customers about access. It leaves the timing of any account restrictions and the treatment of existing positions or cash balances unconfirmed.
Arkansas is seeking penalties and restitution
Arkansas Attorney General Tim Griffin sued Kalshi on Nov. 4, alleging it offered gambling without the state licenses and consumer protections required of gambling operators. The state is asking for restitution, penalties, taxes and a court order. The CFTC announced its Arkansas suit Friday. It argues federal law displaces the state’s efforts to regulate contracts traded on exchanges the commission oversees. Its announcement identifies an enforcement case and requested penalties in Arkansas. It does not identify a statewide access restriction like Louisiana’s order.
The agency says Louisiana is the 12th state it has sued over jurisdiction. The dispute is about which regulator’s rules apply when the same contracts are available across state lines. Louisiana is asking its state judge to extend the temporary restrictions. In Arkansas, the federal and state complaints lay out opposing positions on whether the state can enforce its laws against Kalshi.
