DOJ and CFTC sue Arkansas over Kalshi event contracts
Regulation1 min read
The US Department of Justice and CFTC sued Arkansas on 12 November 2026 over the state’s attempt to apply gambling and consumer protection laws to Kalshi event contracts. The agencies argue that the Commodity Exchange Act gives the CFTC exclusive jurisdiction and seek preliminary and permanent injunctions covering other CFTC-registered exchanges, affiliates and business partners.
A federal lawsuit filed on 12 November challenges Arkansas’s attempt to take action against Kalshi, with the US Department of Justice and the Commodity Futures Trading Commission as plaintiffs. The complaint was filed in federal court in Arkansas’s Eastern District and names the state and Attorney General Tim Griffin as defendants.
The CFTC has exclusive authority under the Commodity Exchange Act over derivatives on designated contract markets, including the disputed event contracts, the agencies argue. They seek a declaration that Arkansas cannot enforce its gambling and consumer protection laws against those transactions. The requested preliminary and permanent injunctions would cover Kalshi, other CFTC-registered exchanges and their affiliates and business partners.
Griffin filed lawsuits accusing Kalshi and online gaming company Virtual Gaming Worlds of offering unlawful gambling in the state. The complaints, filed on 4 November, also allege that consumers were misled about the products’ legality. He seeks compensation for affected customers, civil penalties and unpaid taxes, plus orders barring the companies from commercialising their products.
Griffin contended that Kalshi’s event contracts amounted to gambling, not financial prediction products. He pointed to tools for self-exclusion and deposit limits, as well as resources for problem gambling, saying such features were typically associated with gambling operators.