CFTC and DOJ sue Louisiana over order barring Kalshi, Polymarket and others from offering event contracts

The federal government has sued Louisiana over prediction markets.

The Commodity Futures Trading Commission and the Department of Justice filed in U.S. District Court on Nov. 13. They want the court to void a state restraining order that bars event contract platforms from serving people in Louisiana. They also want a ruling that these products fall under federal oversight through the Commodity Exchange Act.

Louisiana is the 12th state the CFTC has sued to defend what it calls its exclusive jurisdiction over derivatives markets.

How the order came down

On Thursday, Nov. 12, Attorney General Liz Murrill sued in the 21st Judicial District Court in Tangipahoa Parish. Judge Jeffrey Johnson signed an ex parte temporary restraining order the same day, hours after the filing.

The caption names 31 entities. They include five Kalshi companies, including KalshiEX LLC. Polymarket's U.S. operator, QCX LLC, and four related companies are on the list. So are Robinhood Markets and Robinhood Derivatives, Coinbase Global and Coinbase Financial Markets, five Crypto.com-related entities, ForecastEx, Gemini, Novig, Underdog, ProphetX, Rothera Exchange and Clearing, and IG Group Holdings.

The order covers contracts tied to sports, elections and awards. It requires operators to block access for people physically located in Louisiana unless they hold the state gambling licenses. It lasts 10 days unless extended, and it is not a ruling on the merits.

Murrill's position is that the contracts are illegal gambling. "It's not complicated: if you aren't a licensed gaming operator, you aren't legal," she said.

The federal argument

The CFTC says the Louisiana court ordered more than 30 companies in CFTC-regulated derivatives trading to stop operating in the state without notifying them or giving them a chance to be heard. That is a fair description of how an ex parte order works.

CFTC Chairman Michael Selig called the state's action an attack dressed up as enforcement. He said event contracts have traded legally in Louisiana for years under CFTC rules.

The companies make the same jurisdictional case. A Robinhood spokesperson said its event contracts are federally regulated by the CFTC and offered through its registered derivatives subsidiary. Coinbase argued that Louisiana's suit is the kind of fragmented state enforcement Congress meant to prevent by giving the federal commission exclusive jurisdiction.

Murrill hits back

On Saturday, Nov. 14, Murrill rejected Selig's account. She called his statements "flatly false" and described him as the "obsequious standard bearer for Kalshi and prediction markets."

Her legal argument rests on states' rights. States have long regulated gambling, she said, and that history is the basis for Louisiana's authority.

That sets up a real federalism question. Washington says a federally regulated derivatives market preempts state law. Baton Rouge says gambling has always been a state matter and a federal registration does not change what a sports bet is. Courts have not settled it, and Louisiana is one of several states where it is being fought.

Not just sports

Louisiana's challenge reaches beyond game-day wagers. An Oct. 27 filing shows Kalshi told federal regulators it was self-certifying a class of contracts tied to Louisiana election results. The contracts pay $1 if a specified candidate or party wins and zero otherwise, with the Louisiana secretary of state listed first among the sources used to determine results.

The state's petition also points to Kalshi markets on who will control the Senate, the next White House press secretary, the Best Picture Oscar and the Fed funds rate at the end of 2027.

The state has been building toward this for a while. In December 2025, the Louisiana Gaming Control Board warned licensed sportsbooks that it considered sporting event contracts and certain other event contracts illegal gambling. It said direct or indirect involvement could affect a company's suitability to hold a Louisiana license. Lawmakers this year also strengthened the state's gambling-by-computer law through Act 182.

Kalshi had already sued Louisiana officials in federal court in October to block state enforcement. It sought emergency relief on Thursday after the state moved against it.

What comes next

A federal motion hearing is scheduled for Nov. 17. The state court hearing on Louisiana's request for a preliminary injunction is set for 9 a.m. on Nov. 30.

The restraining order runs 10 days unless extended, which would take it to roughly Nov. 22, about a week before the injunction hearing. Whether Judge Johnson extends it, or the federal court steps in first, will decide whether Louisiana residents can reach these platforms in the meantime.