CFTC sues Louisiana, challenging the ban on prediction markets

According to the announcement from the U.S. Commodity Futures Trading Commission (CFTC), the agency has sued Louisiana, seeking to prevent the state from banning event contracts offered by exchanges and other entities regulated by the CFTC.

The CFTC stated that a Louisiana court had previously issued an order to halt the operations of more than 30 companies related to CFTC-regulated derivatives trading within the state, without notifying the defendants or providing an opportunity for them to present their case. The agency noted that Louisiana is the 12th state it has sued to defend its exclusive jurisdiction over the derivatives market.