DOJ and CFTC sue Arkansas over Kalshi: the federal government asks a court to stop the state case and bar future ones
The filing was first reported by The Block, which linked a docket titled USA v. Arkansas, State of. It arrives eight days after Griffin sued Kalshi in state court and on the same day that Louisiana filed its own case against ten prediction market platforms. Kalshi itself is not a party to the federal suit: the plaintiffs are the United States and the CFTC, and the defendants are Arkansas and its attorney general. Our Kalshi legality tracker follows where each state stands.
What the market is pricing
There is no listed contract on how this lawsuit ends, so the clearest market read is whether the legal pressure on the venues is showing up in their prices. The figures below come from the BetG8 Kalshi vs Polymarket odds tracker, which compares Kalshi with Polymarket, at its 10:43 UTC update on November 13, 2026. Gaps are Polymarket minus Kalshi, in points, as the tracker displays them.
| Measure or outcome | Polymarket | Kalshi | Gap |
|---|---|---|---|
| Shared outcomes priced on both venues | 93 | 0.9 average | |
| Outcomes with a gap of 3 points or more | 4 | n/a | |
| J.D. Vance, 2028 Republican nominee | 31.4% | 35.5% | -4.0 |
| Bitcoin at $100,000 or higher in 2026 | 2.9% | 6.5% | -3.6 |
| Jordan Love, 2026 NFL MVP | 10.3% | 13.5% | -3.3 |
| Victor Wembanyama, 2026-27 NBA MVP | 36.5% | 39.5% | -3.0 |
The summary numbers are unchanged from our desk's 09:43 UTC read. Nothing in that picture points to a dislocation on either venue after the filing. The widest gaps sit in politics, crypto and awards markets, not in anything tied to Arkansas.
What the federal complaint argues
According to The Block's account of the filing, the agencies say the Commodity Exchange Act gives the CFTC exclusive jurisdiction over futures, options and swaps traded on regulated platforms, that the event contracts Arkansas is targeting are swaps, and that the state's efforts intrude on the exclusive federal scheme. Other outlets report the same core argument. The relief requested goes beyond one company. The agencies want a declaration that the state restrictions are preempted, plus injunctions covering enforcement against CFTC-regulated exchanges generally, which CoinCentral reports would extend to affiliates and partners.
What Arkansas alleges against Kalshi
Griffin's office announced its lawsuit on November 4 against KalshiEX LLC and Kalshi Inc. The state alleges that Kalshi's contracts are unlicensed gambling and that the company violated the Arkansas Deceptive Trade Practices Act, and it seeks restitution, penalties, taxes and injunctive relief. CoinCentral reports the case was filed in Independence County Circuit Court. In the announcement Griffin said Arkansas law is concerned with substance, not semantics. Kalshi told The Block at the time that it is a federally regulated financial exchange and would defend against what it called baseless claims. These are allegations that no court has yet decided. The Block said it had asked both Kalshi and Griffin's office for comment on the new federal suit and reported no response from either.
Where this sits in the wider fight
The CFTC has sued states before. BetG8 reported on October 28 that its case against Utah was the agency's tenth against a state. Courts have not all gone the venues' way: a federal judge in New York found that Novig's sports contracts are not swaps, and The Block reports that a federal judge last week barred Kalshi from offering sports contracts on the lands of two California tribes. States, for their part, argue that sports event contracts are wagers that require a state license.
What to watch next
Three things. First, the Eastern District of Arkansas docket: a judge assignment, a briefing schedule and any hearing date on the preliminary injunction request. Second, Arkansas's response, both in federal court and in its own state case. Third, Louisiana, where a state judge signed a temporary restraining order against the platforms on Thursday and a hearing is set for November 30. The CFTC's November 5 guidance giving exchanges 30 days to stop geofencing states runs on a separate clock.
Method and limits
We did not read the complaint itself. The court, parties and relief sought are taken from published reports that agree with each other: The Block, CoinCentral, PANews and TokenPost. The county of the state case comes from CoinCentral alone. We found no public statement from Kalshi, Griffin or the CFTC about the federal suit as of 11:00 UTC on November 13. Prices are from the BetG8 tracker's 10:43 UTC update; the gap column is computed from unrounded prices, so it can differ by 0.1 from the rounded figures shown. Nothing here is legal advice or a forecast of how a court will rule.
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Frequently asked questions
Who is suing whom in the Arkansas Kalshi case?
The Justice Department and the CFTC sued the State of Arkansas and Attorney General Tim Griffin in the U.S. District Court for the Eastern District of Arkansas. Kalshi is not a party to that federal suit. Separately, Griffin sued Kalshi in Arkansas state court on November 4, 2026.
What are the DOJ and CFTC asking the court to do?
They want a declaration that Arkansas gambling law is preempted by the Commodity Exchange Act as applied to CFTC-regulated prediction markets, plus preliminary and permanent injunctions that would stop the state case against Kalshi and block similar state actions in future.
Has a court ruled on the federal lawsuit against Arkansas?
No. The complaint was filed on Thursday, November 12, 2026, and no ruling had been reported as of the morning of November 13. Kalshi remains subject to the pending Arkansas state case until a court says otherwise.
Sources
- The Block, DOJ, CFTC sue Arkansas to block state enforcement action against Kalshi
- CoinCentral, DOJ and CFTC challenge Arkansas over Kalshi enforcement
- PANews, US DOJ and CFTC sue Arkansas to block its enforcement against Kalshi
- TokenPost, DOJ and CFTC sue Arkansas to block enforcement against Kalshi
- Arkansas Attorney General, Attorney General Griffin sues prediction market Kalshi, November 4, 2026
- The Block, Arkansas sues Kalshi, with Kalshi response
- Covers, Louisiana AG targets 10 prediction market platforms in lawsuit
- UPI via Yahoo News, Judge temporarily bars prediction-market bets in Louisiana
- BetG8, Kalshi vs Polymarket odds tracker, 10:43 UTC update, November 13, 2026
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