The CFTC sues Louisiana, its 12th state, to undo a court order that blocked more than 30 companies from offering event contracts there, and the state's attorney general fires back

The Commodity Futures Trading Commission has taken Louisiana to federal court over a state order that cut off prediction markets in the state. The suit, filed Friday, asks for an injunction and a declaration that state gambling law is preempted for CFTC-regulated markets, according to the agency and The Block, which reported it was filed in the Eastern District of Louisiana.

The order at issue was signed on Thursday by a state judge without notice to the companies, and it covers entities tied to Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase, among others, The Block reported. The CFTC says the contracts had traded openly in Louisiana for years and complied with federal law. Selig called the state's case a cynical political stunt and said the agency's suit aims to hold the status quo while federal courts decide the issue. Kalshi has cut off Louisiana users, per The Block.

Murrill replied on X on Saturday, writing that states have regulated gambling for 250 years, The Block reported. Louisiana's request for a preliminary injunction is set for a hearing on November 30, and the restraining order lapses after 10 days unless it is extended. The CFTC has also filed amicus briefs in four federal appeals courts and one state supreme court, according to its release.