Legal battle over derivatives jurisdiction
Louisiana Attorney General Liz Murrill accused Commodity Futures Trading Commission Chairman Michael Selig of making "flatly false statements" on Saturday. This follows a Friday filing where the CFTC and the United States sued Louisiana to block a court order that shuts prediction markets out of the state. Murrill called Selig an "obsequious standard bearer" for Kalshi. She also noted that gambling has been regulated by states for 250 years. Selig told a conference audience on Friday that states are "essentially trying to lock up founders and CEOs" of prediction market companies. The CFTC and the Justice Department filed their complaint in the U.S. District Court for the Eastern District of Louisiana on Friday, naming Murrill, the Louisiana Gaming Control Board, and the state police’s gaming enforcement division as defendants. The agency’s lawsuit asks the court to maintain the status quo while federal courts decide the issue in an orderly manner, and the CFTC claims Louisiana is the 12th state it has sued to defend its exclusive jurisdiction over derivatives markets. Selig called the state’s "eleventh-hour ’emergency’ lawsuit" against the industry "naked lawfare and a cynical political stunt."
Restraining order impacts 31 entities
Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoia Parish signed an ex parte temporary restraining order on Thursday afternoon. The order names 31 entities, including Kalshi, Polymarket, Robinhood, Crypto.com, Coinbase, Gemini, Interactive Brokers’ ForecastEx, Novig, Underdog, IG Group, and ProphetX. The order bars these companies from offering event contracts on sports, elections, awards, and other events to people in Louisiana without a state license. These companies must also geofence the state.
| Restriction Detail | Specification |
|---|---|
| Total entities named | 31 |
| Restricted event types | Sports, elections, awards |
| Expiration duration | 10 days |
| Injunction hearing | Nov. 30 at 9 a.m. |
Murrill sued the companies on Thursday, making Louisiana the 11th state to sue one or more prediction markets. The order expires after 10 days unless the court extends it, and a hearing on the state’s motion for a preliminary injunction is set for 9 a.m. local time on Nov. 30. Kalshi has already cut off access for Louisiana users. A message in the Kalshi app tells users, "Your government says you can’t use Kalshi anymore," and claims the state acted "without a hearing, notice, or due process."
