State-level pushback against prediction markets that claim federal-level oversight of their controversial sports event contracts ramped up again last week.
Louisiana Gaming Control Board (LGCB) Chairman Christopher Hebert joined the chorus of gambling regulators and attorneys general in asserting that these markets, some of which have come to include parlays, entail illegal, unlicensed sports betting. As was the case in Illinois, Maryland, Nevada, and Ohio, Louisiana regulators targeted a warning at current sports betting licensees and vendors that “may be exploring opportunities to operate, offer or otherwise facilitate access to prediction markets, platforms or event-based contracts” and warned of possible repercussions if they are involved with prediction markets.
Said the LGCB in a letter obtained by iGB: “It is the board’s position that such activities constitute sports wagering under Louisiana law and are not being conducted in compliance with Louisiana Gaming Control law or under a valid Louisiana issued licence or permit.”
Gambling companies ignore state warnings
Though the advisory was sent, according to the letter, “to make it clear that any direct or indirect involvement in the operation, offering, or facilitation of sporting event contracts may affect a regulated party’s suitability for licensure or permitting in Louisiana,” gambling companies are ignoring such warnings in other states. Sites like Kalshi and sports betting companies that have moved into the sector by affiliating with Commodity Futures Trading Commission-sanctioned busiesses don’t seem initimidated.
Fanatics, perhaps not coincidentally, last week became the first widely available sportsbook in the United States to launch a prediction market. Fanatics’ sportsbook is licensed in Louisiana and would in theory immediately test the LGCB’s resolve. Its prediction market is not yet available there.
DraftKings and FanDuel, which together control upward of 80% of the U.S. sports betting market, are set to launch their own prediction markets soon.
Fanatics is still listed as a licensed platform on the LGCB website. InGame has contacted the Louisiana regulatory body seeking comment on possible sanctions.
