After a temporary court order halted unlicensed prediction contracts in Louisiana, Kalshi cut off access in the state, while the U.S. federal government and CFTC sued to block enforcement of the order.
According to The Block, the temporary ruling issued Thursday by a Louisiana court covers 31 entities linked to platforms including Kalshi, Polymarket, Robinhood, and Coinbase. The ruling prohibits offering contracts based on sports, elections, and other events without a state license and requires the entities to block access for Louisiana users based on their location.
Kalshi cut off access for users in the state. The move followed Louisiana’s lawsuit against prediction platforms.
What is the federal lawsuit seeking to change?
The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit Friday asking a federal court to block Louisiana from enforcing or expanding the temporary ruling. The agency argues that state gambling laws cannot be applied to markets it oversees.
The temporary ruling will expire in 10 days unless extended. Louisiana’s request for an injunction will be heard on November 30.
Not investment advice.