DOJ and CFTC sue Arkansas to block state enforcement against Kalshi

The U.S. Department of Justice and Commodity Futures Trading Commission filed a lawsuit on November 12, 2026, against Arkansas Attorney General Tim Griffin to stop state enforcement against prediction market Kalshi. Federal regulators argue the Commodity Exchange Act grants exclusive federal jurisdiction over Kalshi's event contracts as regulated swaps, preempting Arkansas gambling laws under which penalties could hit hundreds of millions of dollars. The intervention follows broader state-level challenges against platforms like Kalshi and Polymarket in Louisiana, California tribal lands, and ten other jurisdictions.

Federal lawsuit against Arkansas enforcement

• ▪The federal complaint notes a CFTC interpretation issued, giving designated contract markets 30 days to remove domestic geographic restrictions
• ▪The DOJ and CFTC's federal complaint against Arkansas lists legal preemption actions involving 10 other states, noting that courts in Arizona, Illinois, and Minnesota have issued preliminary injunctions favoring federal preemption of state enforcement
• ▪The United States Department of Justice and the CFTC sued the State of Arkansas and Attorney General Tim Griffin, seeking to block state enforcement action against prediction market Kalshi
• ▪The DOJ and CFTC argue in their lawsuit that federal law gives the CFTC exclusive jurisdiction over event contracts and sports contracts traded on CFTC-regulated exchanges as swaps under the Commodity Exchange Act
• ▪The federal lawsuit filed in the U.S. District Court for the Eastern District of Arkansas asks for preliminary and permanent injunctions barring Arkansas from investigating or enforcing state laws against CFTC-regulated prediction market platforms

Arkansas state action against Kalshi

• ▪Arkansas Attorney General Tim Griffin sued Kalshi Inc. and KalshiEX LLC, claiming Kalshi operates an illegal gambling platform in violation of the state's Deceptive Trade Practices Act
• ▪Arkansas law permits civil penalties up to $10,000 per violation, which federal prosecutors calculate could reach hundreds of millions of dollars based on Kalshi collecting transaction fees of $0.07 to $2.63 per 100 contracts

Louisiana lawsuit against prediction platforms

• ▪Louisiana Attorney General Liz Murrill filed a lawsuit on November 12, 2026, seeking an immediate restraining order against prediction platforms including Kalshi, Polymarket, Robinhood, and Coinbase
• ▪Louisiana Attorney General Liz Murrill stated on X that prediction market platforms have violated state laws with impunity for too long