CFTC Sues Louisiana After State Bans Prediction Markets

The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Louisiana, alleging the state has unlawfully applied its gaming laws to federally regulated event contracts. On Thursday (Nov. 12), a Louisiana judge granted Attorney General Liz Murrill’s request for a temporary restraining order to immediately force prediction markets to stop operating within the state. In response, CFTC attorneys filed a complaint with Louisiana’s Eastern District federal court seeking declaratory and injunctive relief from the state order. Louisiana is the 12th state the CFTC has sued as it defends its claimed “exclusive jurisdiction” over derivatives markets.