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Louisiana regulators have issued a new advisory that directly addresses the fast-growing sports prediction market sector. The Louisiana Gaming Control Board confirmed that sports event contracts fall under the state definition of sports wagering, placing these products squarely within traditional gambling rules and outside lawful operation unless properly licensed.
Good to Know
Louisiana Gaming Control Board chair Christopher Hebert sent the advisory to licensed operators last week, stating that some may be exploring opportunities to operate or facilitate access to prediction markets or event-based contracts. The letter made the state position explicit.
“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 license or permit,” the advisory reads.
The board also warned licensees that involvement in these activities may affect regulatory suitability.
“The Board issues this advisory 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.”
Louisiana stance aligns with a growing number of states that have concluded sports event contracts should be treated as regular sports betting. The advisory arrives as operators such as Fanatics Markets, PrizePicks and Underdog introduce event-contract style products nationally, and as DraftKings and FanDuel prepare their own platforms.
The letter emphasized that only licensed sports wagering entities may offer such products within the state.
“Sports and other event contracts may be offered in Louisiana only if the offering entity possesses a sports wagering gaming license,” it said, noting that established operators often partner with third parties to deliver these formats.
Louisiana reiterated the legal boundary:
“No person or entity may offer, accept, facilitate or in any way enable sports wagering in Louisiana unless the activity is conducted by a licensed or permitted operator through an approved sports wagering platform and exclusively on events included in the Board’s Sports Wagering Catalog,” the letter states.
“Any event-style ‘contract,’ ‘swap,’ ‘market’ or other ‘financial instrument’ that allows individuals to stake value on the outcome of a sporting event, other than a Board licensed or permitted sports wagering operators, constitutes illegal gambling.”
The board also rejected claims that these products fall under federal commodities regulation. Louisiana said it does not view sports event contracts as commodities transactions overseen by the Commodity Futures Trading Commission. Market operators such as Kalshi argue the opposite and are pursuing lawsuits in several states.
Louisiana wrote:
“Not only is such activity illegal under Louisiana law, but the Commodities Exchange Act and the CFTC’s regulations prohibit event contracts related to gaming and activities which are illegal under state law. As it is the Board’s position that these contracts are both gaming and illegal, the Board sees no defense to offering such activity pursuant to a CFTC license.”
The advisory concluded by warning that violations of Louisiana Gaming Control Law or gambling law breaches in other states could affect suitability for licensure in Louisiana.