Washington and Louisiana Take Firm Stance Against Event-Based Prediction Markets
Legal Actions Against Prediction Markets
Several US states have been actively addressing the rise of prediction markets, with many choosing to restrict or ban these platforms. Some states have enacted legislation explicitly prohibiting prediction markets, while others have demanded a halt to their operations within state borders.
Official Positions from Washington and Louisiana
Recently, regulatory bodies in Washington and Louisiana have expressed clear objections to event-based prediction markets. Both the Louisiana Gaming Control Board and the Washington State Gambling Commission have stated that these markets fall outside the scope of their regulated gambling frameworks.
They emphasize the distinction between licensed sports betting activities and unregulated event-based markets, noting that licensed operators must adhere strictly to this separation. Licensed gambling entities have been cautioned against providing or supporting these types of markets, as doing so could jeopardize their standing with state regulators.
Washington State’s Firm Ban on Prediction Markets
In Washington, prediction markets are officially prohibited. The Washington State Gambling Commission has underscored this ban, despite ongoing legal efforts in both state and federal courts to challenge and potentially legalize event-based predictions.
Currently, legal betting in Washington is limited mainly to tribal casinos, as most forms of gambling require specific regulation or exceptions. The Commission remains vigilant, indicating that any changes arising from legal developments will prompt updated guidance on prediction market activities.
Louisiana’s Regulatory Clarifications
The Louisiana Gaming Control Board has issued a formal declaration directed at licensed sports betting operators and online platform owners. It warns that accepting bets on the outcomes of future events—including but not limited to sports—is illegal in Louisiana and could lead to license revocations.
License holders and affiliated parties are expected to comply fully with these regulations in all jurisdictions where they operate. This warning could impact several major operators, such as DraftKings, Fanatics, and FanDuel, which have introduced or are planning to introduce prediction-style wagering options on their platforms.
