Louisiana and Washington issue warnings on prediction markets
Regulators in Louisiana and Washington have released updated guidance clarifying that event-based prediction markets fall outside their legal gambling frameworks, cautioning licensed operators that involvement in such products could jeopardise their standing.
The Louisiana Gaming Control Board (LGCB) issued an advisory to all sports wagering licensees and platform providers noting that contracts tied to future events, including sporting outcomes, are considered illegal gambling under state law.
The notice states that any direct or indirect role in operating, offering, or facilitating these event contracts may affect an operator’s suitability for continued licensure.
The Board emphasised the responsibility of licensees and associated individuals to comply fully with statutory requirements across every jurisdiction where they conduct business.
The language mirrors recent actions in other states, such as Ohio, where regulators have signalled that participation in prediction markets could place gaming approvals at risk.
The warning carries practical implications for three Louisiana-licensed operators, DraftKings, Fanatics and FanDuel, each of which has either launched or announced plans to offer sports-related event contracts in select jurisdictions.
The advisory adds a further compliance consideration at a time when prediction markets are gaining broader industry attention.
Prediction markets not welcome in Washington State
Elsewhere, Washington State regulators issued a parallel update, noting a rise in public and commercial interest in online platforms that offer event-based contracts.
The Washington State Gambling Commission reiterated that such markets are not authorised in the state.
Officials stated that, although prediction markets remain the subject of ongoing litigation at the federal and state levels, the current statutory landscape prohibits offering or participating in these products.
The Commission underscored that sports betting in Washington is legal only in a narrow, retail format within tribal casinos. Statewide online wagering is not permitted, and placing internet-based bets from non-tribal locations remains illegal.
The Commission said it would continue tracking court developments and disseminate new guidance once judicial outcomes provide additional clarity.
The coordinated tone between Louisiana and Washington highlights increasing scrutiny of prediction markets as they expand into new jurisdictions.
Operators see event-driven contracts as a growing commercial category. However, several state regulators disagree.
They’re now drawing sharp distinctions between approved sports wagering products and unauthorised event-based markets, a dichotomy that carries heightened compliance stakes for licensed entities.
https://next.io/news/regulation/louisiana-washington-issue-warnings-prediction-markets/