CFTC sued Arkansas and Louisiana in one day. Arkansas seeks up to $10,000 per Kalshi violation
On November 13, 2026, the U.S. derivatives regulator said it had sued Arkansas and Louisiana to stop state actions against federally regulated prediction markets. Arkansas is the 11th state it has taken to court.
Key points
- The CFTC announced lawsuits against Arkansas and Louisiana on November 13, 2026. Its Arkansas release calls it the 11th state the agency has sued over prediction markets.
- Arkansas sued Kalshi in a state court on November 4, calling its event contracts illegal gambling and seeking up to $10,000 per violation.
- The CFTC's federal complaint says event contracts on its regulated exchanges are swaps under federal law, which only the CFTC may police there.
What happened
The Commodity Futures Trading Commission, the U.S. regulator for futures and swaps, opened two new fronts on November 13, 2026. One press release said it had sued Arkansas. A second release, listed the same day on the CFTC press page, is titled "CFTC Sues Louisiana After State Court Blocks CFTC-Regulated Exchanges." We could not open the Louisiana release text, so we report only its title.
Prediction markets let people buy contracts that pay out if an event happens, such as an election result or a game score. Kalshi is one such exchange and is registered with the CFTC as a designated contract market. Several states say these contracts are gambling under their laws.
CFTC Chairman Michael S. Selig said, "The CFTC will continue to defend its sole jurisdiction over these federally regulated markets."
The Arkansas fight
The trigger was a state case. On November 4, Arkansas sued Kalshi, Inc. and KalshiEX LLC in the Circuit Court of Independence County, according to the CFTC's complaint. The state says Kalshi's event contracts are illegal gambling, that Kalshi misled users about their legality and that it never paid sales or use taxes. It seeks an injunction, restitution and civil penalties of up to $10,000 per violation under its Deceptive Trade Practices Act. The CFTC says penalties of that kind could reach hundreds of millions of dollars.
The federal answer came in the U.S. District Court for the Eastern District of Arkansas. The complaint, dated November 10 and stamped filed November 12, names the State of Arkansas and Attorney General Tim Griffin in his official capacity. It argues that federal commodities law overrides the state rules for contracts listed on CFTC-regulated exchanges. It asks the court to declare the Arkansas laws invalid as applied to those trades and to bar the state from enforcing them.
A growing list
The CFTC has been suing states all year. On April 2, 2026, it sued Arizona, Connecticut and Illinois together. On October 27 it said it had sued Utah, the last state suit on its press page before Arkansas. The Arkansas release says the agency has also filed friend-of-the-court briefs in four federal appeals courts and one state supreme court.
States the CFTC has sued over prediction markets, cumulative
states
Sources: CFTC, April 2, 2026; CFTC, November 13, 2026. The Louisiana suit is not counted because we could not read that release.
LC Insight analysis
This section is our reading of the facts above, not a statement of fact.
- We think two suits in one day show the CFTC wants to answer each state case fast, before state courts can set rules for exchanges it regulates.
- The core question is the same everywhere: are event contracts swaps under federal law, or bets under state law? A federal appeals ruling on that point would matter more than any single new suit.
- For users, nothing changes overnight. The state cases and the federal suits run in parallel, and court orders in either one can change what an exchange may offer in a state.
What's next
- The text of the CFTC's Louisiana release and which exchanges the state court blocked.
- Whether the Arkansas federal court grants a preliminary injunction.
- Kalshi's response in the Independence County case.
Disclaimer. This article is based on public information and the sources listed below as of the update time shown. It is for information only and is not investment, legal or tax advice. Figures may change as companies and authorities publish new data.
Sources
- CFTC, press releases list (read November 14, 2026)
- CFTC, Release 9325-26, CFTC Files Lawsuit Against Arkansas (November 13, 2026)
- U.S. and CFTC v. State of Arkansas and Tim Griffin, complaint, E.D. Ark. No. 4:26-cv-01255 (filed November 12, 2026)
- CFTC, Release 9326-26, CFTC Sues Louisiana After State Court Blocks CFTC-Regulated Exchanges (November 13, 2026; text could not be opened)
- CFTC, Release 9315-26, CFTC Sues to Block State Enforcement in Utah (October 27, 2026)
- CFTC, Release 9206-26, CFTC Sues Trio of States (April 2, 2026)
