CFTC Sues Louisiana After Judge Bars Kalshi and Other Operators

The CFTC sued Louisiana on Friday, escalating a federal-state fight over prediction markets after a state judge temporarily blocked more than 30 operators, including Kalshi, Polymarket and Robinhood, from doing business there.

Louisiana Attorney General Liz Murrill filed suit Thursday, Nov. 12, alleging the companies offered gambling without state licenses. A judge issued a temporary injunction that day. The CFTC said the order came without advance notice to the defendants or a chance for them to respond.

Louisiana is the 12th state sued by the CFTC in its effort to preserve federal authority over derivatives and event contracts. The agency has also filed friend-of-the-court briefs in four federal appeals courts and one state supreme court in related disputes.

Coinbase said it had no opportunity to respond before the state action. Polymarket argued that prediction markets fall under a federal framework overseen by the CFTC, while Robinhood said it is registered with the commission.

The state court has scheduled its next hearing on the injunction for Nov. 30.