CFTC sues Arkansas to block its Kalshi gambling case
Griffin’s state case already seeks an injunction, restitution, damages, unpaid taxes & civil penalties of up to $10,000 per violation from Kalshi.
The hit
The CFTC has sued Arkansas, not Kalshi, to stop the state’s own crackdown on the prediction market. Filed Thursday in the Eastern District of Arkansas & announced Friday, the suit asks a judge to block enforcement against Kalshi & other federally regulated prediction market firms.
Why it matters
Arkansas is the 11th state the CFTC has sued over its claimed authority on prediction markets, with briefs also filed in four federal appeals courts & one state supreme court, according to the agency. Polymarket US & Crypto.com-backed OG.com have already filed separate federal suits of their own this week. How far any ruling would stretch depends on what a judge actually orders.
The record
| Arkansas lawsuit filed | Nov 4, by AG Tim Griffin against KalshiEX LLC & Kalshi Inc, Independence County Circuit Court |
|---|---|
| State penalty exposure | Up to $10,000 per violation under Arkansas Deceptive Trade Practices Act |
| CFTC’s own estimate | Penalties could reach “hundreds of millions of dollars” (CFTC complaint) |
What happens next
Watch the Eastern District of Arkansas for the CFTC’s preliminary injunction request & any response from AG Tim Griffin’s office to the preemption claims.
Sources: CFTC Sues Arkansas Over Kalshi Enforcement
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