Louisiana AG calls CFTC chair an 'obsequious standard bearer' for prediction markets following agency lawsuit

Louisiana Attorney General Liz Murrill accused Commodity Futures Trading Commission Chairman Michael Selig of making "flatly false statements" on Saturday, a day after the agency sued the state to block a court order shutting prediction markets out of Louisiana.

"Flatly false statements by the 'obsequious standard bearer' for Kalshi and prediction markets. Gambling has been regulated by states for 250 years," Murrill wrote on X at 12:05 p.m. ET.

Murrill was replying to a Friday evening post in which Selig said event contracts "have traded openly in Louisiana for years, in compliance with the CEA and [CFTC] regulations." He called the state's "eleventh-hour 'emergency' lawsuit" against the industry "naked lawfare and a cynical political stunt."

CFTC sued to block statewide prediction market freeze

The CFTC and the United States filed a complaint in the U.S. District Court for the Eastern District of Louisiana on Friday, naming the state, Murrill, the Louisiana Gaming Control Board and the state police's gaming enforcement division as defendants. The agency is asking the court to declare that state gambling laws are preempted for CFTC-regulated markets and to bar Louisiana from enforcing or extending the state court's order.

"The Commission's lawsuit seeks to maintain the status quo while the federal courts decide this issue in an orderly manner," Selig said in a statement. The agency said Louisiana is the 12th state it has sued to defend its claimed exclusive jurisdiction over derivatives markets.

On Thursday, the CFTC and the Justice Department also sued Arkansas to block its enforcement action against Kalshi. Selig told a conference audience on Friday that states were "essentially trying to lock up founders and CEOs" of prediction market companies, The Block reported.

Order covers 31 entities

Judge Jeffrey Johnson of the 21st Judicial District Court in Tangipahoa Parish signed the ex parte temporary restraining order Thursday afternoon, according to a copy Murrill posted on X. Murrill sued the companies earlier that day, making Louisiana the 11th state to sue one or more prediction markets.

The order names 31 entities tied to Kalshi, Polymarket, Robinhood, Crypto.com, Coinbase, Gemini, Interactive Brokers' ForecastEx, Novig, Underdog, IG Group and ProphetX. It bars them from offering event contracts on sports, elections, awards and other events to people in Louisiana without a state license, and requires them to geofence the state.

The order expires after 10 days unless the court extends it. A hearing on the state's motion for a preliminary injunction is set for 9 a.m. local time on Nov. 30.

Kalshi has cut off access for Louisiana users. A message in its app, seen in a screenshot reviewed by The Block, tells them, "Your government says you can't use Kalshi anymore," and says the state acted "without a hearing, notice, or due process." The screen includes a link reading "Protect your freedom to trade" and a button to "Join the movement."

The Block has reached out to Kalshi, Polymarket and Murrill's office for comment.