CFTC sues Arkansas to block its enforcement case against Kalshi

The complaint was filed Nov. 12; the CFTC announced it Nov. 13. Arkansas is the 11th state the agency has sued.

By James Mitchell · Nov 14, 2026, 4:28 PM EST

Why it matters: The agency wants to keep Arkansas from stopping event-contract trading on federally regulated exchanges and from seeking civil penalties that could reach hundreds of millions of dollars.

For information only, not investment advice.

Arkansas is bringing a civil enforcement case in state court against Kalshi, a CFTC-designated contract market, alleging its event contracts constitute illegal gambling.¹ The federal complaint says Arkansas sued KalshiEX LLC on Nov. 4 in the Circuit Court of Independence County.²

The complaint was filed Nov. 12 in the U.S. District Court for the Eastern District of Arkansas by the United States and the CFTC, which announced the filing Nov. 13.¹² It aims to prevent Arkansas from stopping event-contract trading on federally regulated exchanges and from pursuing civil penalties against those exchanges that could reach hundreds of millions of dollars.¹

Chairman Michael S. Selig said Arkansas seeks to shut down event contracts ranging from sports and politics to other important world events.¹ Arkansas is the 11th state the CFTC has sued.¹

Sources

CFTC Files Lawsuit Against Arkansas as the Agency Defends its Federal Jurisdiction Over Prediction Markets, Commodity Futures Trading Commission
Complaint for Injunctive and Declaratory Relief: Arkansas, Commodity Futures Trading Commission

Tags: regulation

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