CFTC Sues Louisiana After State Judge Orders Geofence of Prediction‑Market Platforms

The Commodity Futures Trading Commission has sued Louisiana after a state judge, acting on an emergency request from the attorney general, ordered more than 30 companies tied to prediction-market and event-contract trading to stop serving people in the state and to geofence Louisiana.

The federal agency said Friday, in Release No. 9326-26, that it filed suit against the State of Louisiana to block the state from prohibiting “event contracts” offered by CFTC-regulated designated contract markets, futures commission merchants and derivatives clearing organizations. The CFTC, which regulates U.S. derivatives markets, said Louisiana had secured a state court order on Thursday, Nov. 12, shutting down the operation in Louisiana of more than 30 companies connected to trading in CFTC-regulated derivatives products.

The immediate effect is potentially significant for both users and major platforms. The state action reaches recognizable names including Kalshi, Polymarket US, Robinhood Derivatives, Coinbase Financial Markets and Crypto.com-related entities including North American Derivatives Exchange. The order is temporary, but it bars the companies from offering event contracts to people located in Louisiana, accepting wagers or allowing market access from the state, and requires them to geofence Louisiana. It also bars them from representing the products as lawful in Louisiana without a state gaming license.

The order was signed by Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa Parish at 3:48 p.m. on Nov. 12. It was an ex parte temporary restraining order, meaning it was issued without notice to the defendants. By its terms, it expires 10 days after issuance unless extended. A hearing on whether to issue a longer-lasting preliminary injunction is set for Nov. 30.

The CFTC said its federal lawsuit is meant to freeze the situation until federal courts can decide whether Louisiana can restrict markets the agency says fall under federal law. CFTC Chairman Michael S. Selig said, “The Commission’s lawsuit seeks to maintain the status quo while the federal courts decide this issue in an orderly manner.” In the same release, he said, “Event contracts have traded openly in Louisiana for years, in compliance with the Commodity Exchange Act and CFTC regulations.”

At the center of the dispute is who gets the final say over these products. The CFTC says the Commodity Exchange Act gives it exclusive jurisdiction over certain swaps and derivatives traded on designated contract markets. Louisiana, by contrast, has been signaling for nearly a year that it views at least some of these offerings as illegal gambling under state law.

That state position did not emerge overnight. On Dec. 10, 2025, the Louisiana Gaming Control Board issued an advisory saying it considers sporting event contracts and certain other event contracts to be illegal gambling under Louisiana law. Louisiana Attorney General Liz Murrill, in a public post reproduced in reporting, said, “This morning I filed suit in Louisiana state court against Kalshi, Polymarket, and numerous other illegal online gambling operations.”

What makes this clash stand out is how directly Louisiana’s order conflicts with the CFTC’s own recent instructions to the industry. On Nov. 5, 2026, just a week before the Louisiana restraining order, the CFTC issued an “Impartial Access Requirements Interpretation” telling designated contract markets to end domestic geographic access restrictions within 30 days or explain why compliance was not feasible. The agency said geographic access restrictions are inconsistent with its impartial-access rule. Louisiana’s order demands the opposite: geofencing to keep state residents out.

The CFTC said Louisiana is the 12th state it has sued in defense of what it describes as its exclusive authority over these federally regulated derivatives markets. But the Louisiana case crystallizes the practical stakes especially clearly, because the state order took immediate aim at market access.

For now, both tracks are moving at once. The federal case is now pending, while the state temporary restraining order remains in place unless it expires or is extended. The next key date is Nov. 30, when the state court is scheduled to hear Louisiana’s request for a preliminary injunction.