A significant number of US states have been taking action against prediction markets.
Some states have passed bills outlawing prediction markets, while others have simply demanded that they cease operations within their state.
Recently, the Louisiana Gaming Control Board (LGCB) and Washington State Gambling Commission issued statements regarding their stance on prediction markets.
Both institutions have made it clear that event-based prediction markets do not fit within their legal gambling frameworks.
They have begun to outline the significant differences between licensed sports betting and event-based markets that aren’t authorised.
This clear-cut division is something that licensed entities are required to follow.
Licensed operators have been warned against offering or facilitating such services, as that could affect the way they are viewed by their state.
State regulators have opposed operators’ view on event-based prediction markets as a commercial category experiencing significant growth.
Washington against Prediction Markets
In contrast to the statement issued by the Commission, regulators said the opposite, as they emphasized the increased attention that event-based markets are receiving from a public and commercial standpoint.
The fact that prediction markets are banned in the state was afterwards highlighted by the Washington State Gambling Commission.
As things stand in Washington, the offering or participating in event-based predictions is at this moment still prohibited, in spite of ongoing attempts in both state and federal courts to legalize it.
Tribal casinos are currently the only way to bet legally, as anything related to gambling in the state is mostly illegal unless an exception is made or is highly regulated.
Any changes in the litigation will have the Commission share a clarified view on the matter, as they have their eyes on any possible legal developments.
Louisiana Elaborates
An official statement by The Louisiana Gaming Control Board towards those with sports betting licences, as well as companies or entities that own online platforms.
The Control Board pointed out that allowing bets to be placed on the outcome of future events, whether directly or indirectly, regardless of whether it’s sports or not, is illegal in Louisiana and could result in operators losing their license.
Those who hold licences as well as those associated with them must fully follow these requirements everywhere they operate, as accentuated by the Control Board.
DraftKings, Fanatics, and FanDuel are operators licensed in Louisiana that could be affected by these warnings as they have either started or plan to start allowing for predictions to be made on their platforms in certain regions.