The Commodity Futures Trading Commission (CFTC), together with the United States, has sued Louisiana in federal court to stop the state from applying its gambling laws to event contracts traded on CFTC-regulated exchanges. The lawsuit seeks preliminary and permanent injunctions and a declaration that federal law preempts those restrictions, arguing that the Commodity Exchange Act gives the commission exclusive jurisdiction over the contracts.
The action follows a November 12, 2026, state court temporary restraining order targeting 32 entities, including CFTC-regulated designated contract markets, futures commission merchants and derivatives clearing organizations. Entered without notice or an opportunity for the defendants to be heard, the order prohibits offering or facilitating covered event contracts for people in Louisiana without a valid license and permit. Its scope includes contracts related to sports, elections and award events.
The complaint, filed in the U.S. District Court for the Eastern District of Louisiana, argues that the targeted contracts qualify as swaps under federal law. It contends that Louisiana’s restrictions conflict with federal requirements for impartial market access and undermine the federal process allowing exchanges to self-certify contracts. The requested injunctions would prevent state investigations and enforcement concerning transactions on CFTC-regulated markets, including enforcement or extension of the November 12 order. Louisiana is the 12th state the CFTC has sued to defend its asserted exclusive jurisdiction over derivatives markets.