Louisiana is the latest state to take issue with prediction markets introducing sportsbooks. In a press release from the Louisiana Gaming Control Board (LGCB), it now views sporting event contracts and “certain other event contracts” as a violation of state gambling laws. This comes only days after the Washington State Gambling Commission issued a similar communique.
Sports gambling is legal in the state, but is, like every other state, managed by a watchdog. Louisiana is now working to ensure that companies like Kalshi and Polymarket can’t skirt around regulations due to the fact that they’re managed by the federal government via the Commodities Futures Trading Commission (CFTC).
This has become a rising issue as Kalshi and Polymarket benefit greatly from the move to offering sports contracts. As we’ve reported previously, Kalshi’s first week of hosting the NFL on Fox partnered sports gambling led to them earning more money than the entire presidential election gambling.
Louisiana looks to regulate sports prediction markets
There’s massive money in sports gambling, as it’s quickly become a dominant force across the US. DraftKings and FanDuel generate millions each month, and the addition of prediction markets has compounded that. However, Louisiana is now making it known that it views this as illegal and is looking for solutions to its problems.
It details this in the press release as: “The advisory notice further informs Louisiana sports wagering operators that any direct or indirect involvement in the operation, offering, or facilitation of sporting event contracts may affect a sports wagering licensee, permittee, and associated person’s suitability for licensure or permitting in Louisiana.”
The LGCB chairman further details this in a notice issued via email or certified mail:
“Not only do these ‘contracts’ related to sports wagers, and, possibly, other contracts fit the definitions of gambling… but La. R.S. 27:602 includes ‘exchange wagering’ as a ‘sports wager’ under the Louisiana Gaming Control Board’s jurisdiction and licensing.
“The Board considers purported sporting event contracts and certain other event contracts as illegal gambling in violation of the Louisiana Criminal Code and Louisiana Gaming Control Law.
“Illegal sports wagering may occur whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission (‘CFTC’) or elsewhere. Examples of event contracts that the Board considers to be illegal wagering subject to its jurisdiction include event contracts based on the outcome or partial outcome of any sporting or athletic event, or other selected events (‘Sports and Other Event Contracts’).”
Featured image: Louisiana Gaming Control Board
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