Prediction Markets in Louisiana

The December 2025 LGCB Operator Letter

In December 2025, the Louisiana Gaming Control Board sent letters to all licensed Louisiana sports betting operators warning that any partnerships with prediction market services or any cross-promotion of prediction market products to LA customers could constitute a violation of the operator's LA license conditions. The letter specifically warned that license revocation was a possible enforcement outcome.

By making LA-licensed operators choose between their LA sportsbook license and any prediction market business activity, LGCB indirectly limits the channel and brand integration available to prediction markets within Louisiana.

Notably, the LGCB letter expressly acknowledged the legal weakness of any direct enforcement against the DCMs themselves. As reported by Legal Sports Betting in December 2025, the letter stated that "based on legal precedents in other states, it is currently unlikely that the LGCB will be able to enforce its view that prediction markets are [illegal under LA law]." This unusual candor reflects the consistent federal court trend (Third Circuit↗ (opens in a new tab), Sixth Circuit, Arizona) that has limited state direct enforcement leverage.

Louisiana's Established Mobile Sports Betting Market

Louisiana launched legal mobile sports betting on January 28, 2022 in 55 of the state's 64 parishes (the parishes that voted yes in the November 2020 ballot referendum). The other 9 parishes prohibit mobile sports betting based on local-option voting. Major operators FanDuel, DraftKings, BetMGM, Caesars, ESPN BET, Fanatics, and Penn Entertainment are all live in eligible parishes.

Louisiana imposes a 15% tax on mobile sports betting adjusted gross gaming revenue plus a 10% tax on retail. The state generates approximately $40-60M in annual sports betting tax revenue. The LGCB oversees the licensed sportsbook framework as part of its broader gaming jurisdiction.

The local-option parish structure creates a unique geographic complexity in Louisiana: licensed mobile sports betting works only in the 55 yes-voting parishes (covering the major metro areas of New Orleans, Baton Rouge, Lafayette, Shreveport, Lake Charles, Monroe), while the 9 no-voting parishes (mostly rural) prohibit it.

What Louisiana Residents Can Trade in 2026

Full federal prediction market catalog is available to LA residents 18+ statewide (including in the 9 parishes that prohibit licensed mobile sports betting):

• NFL, NBA, MLB, NHL — full league coverage including New Orleans Saints (perennially one of the highest-engagement NFL markets given Saints fan dedication), New Orleans Pelicans, Louisiana State Tigers football, LSU basketball, and Tulane football
• College sports — LSU football and basketball drive significant LA-resident volume on Kalshi during SEC↗ (opens in a new tab) season and NCAA tournament periods
• Politics — 2026 midterms, 2028 presidential, congressional control, individual federal and state races
• Economic data, crypto, culture, weather — full catalog (Louisiana hurricane formation contracts have been particularly active given LA's exposure)

Best Platforms for Louisiana Residents

OG.com is our top pick for Louisiana in 2026. Crypto.com's CFTC-regulated sports-first prediction market combines a 4-leg parlay builder, social trading feed, and live in-game contracts — and new traders can trade $25 and get $50 in rewards with code RANKPREDICTS. Kalshi remains a strong runner-up for the deepest non-sports catalog and lowest published fees.

Polymarket US offers strong politics and crypto liquidity and is not named in any LA enforcement letter or operator pressure action.

The Predictions products themselves continue to operate.

Statewide Access Despite Parish-Level Sports Betting Restrictions

One of the more interesting aspects of Louisiana's regulatory landscape is that prediction markets effectively close the geographic gap created by the state's parish-level local-option sports betting framework. Residents of the 9 no-voting parishes (which include parts of rural northeast and southwest Louisiana) cannot legally use FanDuel, DraftKings, or other licensed mobile sportsbooks.

How LA Compares to Neighboring States

• Arkansas: Available (as of October 3, 2026)
• Mississippi: Available (as of October 3, 2026)
• Texas: Available (as of October 3, 2026)

Tax Considerations for Louisiana Residents

Louisiana has a graduated state income tax with a top rate of 4.25% (after recent LA tax reform reducing prior higher tiered brackets). Net gains from prediction market trading are taxable at federal level plus the LA state rate. Kalshi provides a profit-and-loss statement for your trades; platforms' 1099s mainly cover interest, rewards and crypto transfers.

Louisiana residents should be aware that LA-licensed sportsbook winnings are reported separately by operators on W-2G forms when single-event payouts exceed federal thresholds.

What could change the status

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.

Best Platforms Compared

Status in Louisiana as of October 3, 2026

Platform	Status	Why (source)	Welcome offer in Louisiana
Kalshi	Available	Kalshi accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. (source (opens in a new tab))	Valid: Trade $25 and Get $25!
Polymarket US	Available	Polymarket US accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. (source (opens in a new tab))	Valid: Deposit $10 get a $25 Trading Bonus!
ProphetX	Available	ProphetX accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. (source (opens in a new tab))	Valid: Trade $50, Earn $75!
OG (by Crypto.com)	Available	OG accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. (source (opens in a new tab))	Valid: Trade $25 Get $50 in Rewards! (New users only)
Novig	Available	Novig accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. (source (opens in a new tab))	Valid: Deposit $10 Get $50 in Trade Credits!
Rebet	Not offered	Rebet is a sweepstakes app, not a CFTC-regulated exchange; its sweepstakes rules exclude Louisiana. (source)	Not valid here

What changed (newest first)

• Sep 25, 2026 (federal) — Sixth Circuit rules against Kalshi in Ohio and Tennessee appeals. Source: U.S. Court of Appeals for the Sixth Circuit (opinion, Nos. 26-3196/26-5235) (opens in a new tab)
• Sep 11, 2026 (federal) — Crypto.com asks Supreme Court to review Ninth Circuit ruling (No. 26-344). Source: Supreme Court of the United States, docket No. 26-344 (opens in a new tab)
• Sep 10, 2026 (federal) — Kalshi seeks Ninth Circuit rehearing; Robinhood petitions Supreme Court. Source: Sports Betting Dime (opens in a new tab)
• Sep 2, 2026 (federal) — New Jersey asks U.S. Supreme Court to review Kalshi preemption ruling. Source: New Jersey Office of the Attorney General (opens in a new tab)
• Aug 28, 2026 (federal) — Ninth Circuit rules for Nevada regulators in Kalshi case. Source: U.S. Court of Appeals for the Ninth Circuit (opinion, No. 25-7516) (opens in a new tab)
• Apr 6, 2026 (federal) — Third Circuit sides with Kalshi against New Jersey regulators. Source: U.S. Court of Appeals for the Third Circuit (opinion, No. 25-1922) (opens in a new tab)

_No Louisiana-specific entry is in the legal timeline; the list shows the federal rulings and Supreme Court petitions that shape the national picture._

Prediction markets in other states

• Alaska
• California
• Colorado
• Connecticut
• Florida
• Hawaii
• Illinois
• Kansas
• Maryland
• Massachusetts
• Minnesota
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Rhode Island
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Wyoming
• Alabama
• Arizona
• Arkansas
• Delaware
• Georgia
• Idaho
• Indiana
• Iowa
• Kentucky
• Louisiana
• Maine
• Michigan
• Mississippi
• Missouri
• Montana
• Nevada
• New Mexico
• North Carolina
• Ohio
• Oklahoma
• Puerto Rico
• South Carolina
• South Dakota
• Tennessee
• Washington DC
• West Virginia
• Wisconsin

§ References & Sources

1. Commodity Futures Trading Commission (CFTC) (opens in a new tab)— U.S. federal regulator
2. CFTC Designated Contract Markets list (opens in a new tab)— CFTC
3. 26 U.S. Code § 1256 — Section 1256 contracts marked to market (opens in a new tab)— Cornell Law / U.S. Code
4. IRS Form 6781 — Gains and Losses From Section 1256 Contracts (opens in a new tab)— Internal Revenue Service
5. National Council on Problem Gambling — 1-800-GAMBLER (opens in a new tab)— NCPG

Frequently asked questions

Are prediction markets legal in Louisiana?

We don't give legal verdicts, but here is the status as of October 3, 2026: Kalshi, Polymarket US, ProphetX, OG and Novig: Available. No court ruling or state enforcement action on prediction markets in Louisiana was found in the legal timeline (absence is not proof). Nationally, federal appeals courts are split on sports event contracts, all at the preliminary-injunction stage, and three Supreme Court petitions are pending; none has been granted.

Can I use Kalshi in Louisiana?

Status as of October 3, 2026: Available. Kalshi accepts Louisiana residents; no court ruling or state enforcement action on prediction markets in Louisiana was found in our legal timeline. Kalshi's welcome offer (Trade $25 and Get $25!) applies to Louisiana residents. Kalshi's minimum age is 18; we recommend 21+.

Has Louisiana taken action against prediction markets?

Our legal timeline has no court ruling or state enforcement action on prediction markets in Louisiana (that is not proof none exists). No federal appeals court covering Louisiana has ruled on sports event contracts.

What could change the status in Louisiana?

Dates we are watching: Nevada's responses to the Robinhood and Crypto.com Supreme Court petitions are now due November 13 and 16, 2026 (both extended in October), and Kalshi's response to New Jersey's petition is due November 9, 2026 (deadlines can be extended); the earliest the Supreme Court could act on the petitions is a conference in December 2026 or January 2027 (our estimate, not a scheduled date). We re-check this page when any of these happen and log the change above.