The United States and the CFTC sued Louisiana to stop the state from enforcing gambling laws against federally regulated event-contract markets. The suit follows a state court restraining order that targeted 32 entities. The complaint is a request for relief, not a ruling.
The United States and the Commodity Futures Trading Commission sued Louisiana on Nov. 13, seeking to stop the state from enforcing gambling laws against federally regulated event-contract markets. The move came after a state court issued a temporary restraining order.
The federal complaint was filed in the U.S. District Court for the Eastern District of Louisiana. It names the state, Attorney General Liz Murrill, the Louisiana Gaming Control Board and its members, and several other state officials as defendants.
State court order targeted 32 entities
According to the complaint, a Louisiana court in Tangipahoa Parish issued the order on Nov. 12 without notice to the defendants or an opportunity to be heard. The state's enforcement action targeted 32 entities, including federally regulated exchanges, futures commission merchants and derivatives clearing organizations.
Murrill named Kalshi, Polymarket, Coinbase and Robinhood among the targets and described their activity as illegal gambling. She wrote: "It’s not complicated: if you aren’t a licensed gaming operator, you aren’t legal" according to The Defiant. Murrill rejected the CFTC chairman's account on Nov. 14, defending state authority over gambling.
Federal plaintiffs argue for exclusive jurisdiction
The federal plaintiffs argue that event contracts are swaps under the Commodity Exchange Act. On that reading, transactions on designated contract markets fall under the CFTC's exclusive jurisdiction, and federal law overrides Louisiana gambling laws as applied to them. These are the plaintiffs' legal positions, not a ruling in this case.
The complaint seeks preliminary and permanent injunctions barring state investigations and enforcement against CFTC-regulated entities and their affiliates and partners. That includes enforcement or extension of the Nov. 12 restraining order.
The order's current procedural status and the affected platforms' availability to Louisiana users remain unconfirmed.
Source: The Defiant
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