Sen. Rick Edwards introduced a bill in the Louisiana Senate that proposes banning election betting. The bill would make both placing and accepting bets on any elections illegal.
The wording of Senate Bill 90 attempts to cover all aspects of betting on political elections. It reads, “No person shall knowingly, willfully, or intentionally participate in any bet or wager that is based upon any contingency whatsoever that arises from an election”.
SB90 also goes on to specify the following conditions that would be illegal:
“(a) Making an offer to bet or wager on an election.
(b) Accepting a bet or wager on an election.
(c) Taking a share or monetary interest in a bet or wager on an election.
(d) Providing money to be used by another person in making a bet or wager on an election.
(e) Act in any manner to become a party to a bet or wager on an election.”
The penalty proposed is the same as current penalties for violating an election. For a first offense, that is a $1,000 fine or imprisonment for up to a year. For repeat offenders, a $2,500 fine or imprisonment for up to 5 years.
The bill can be viewed here.
Betting in Louisiana
Online sports betting has been legal in Louisiana since 2022. Last October and November, during election season, there were over $700 in bets placed online. Online sportsbooks such as bet365 ran election markets, although these were not available in all regions.
The state collects a sizeable amount of tax revenue from online betting. In February this year alone, Louisiana took $7 million, up 87% from February last year.
Election betting through prediction markets
Kalshi, Robinhood, and Crypto.com have been all over the news this week as states hit them with cease-and-desist letters. Illinois, New Jersey, Ohio, and Nevada all accuse the companies of facilitating unlicensed sports betting markets. Last year, Kalshi and Robinhood’s prediction markets on the US Presidential election took in over $300 million.
The sites have argued this week that their Super Bowl and March Madness markets are not sports betting. However, they took out ads during the election with clearer messaging. On Right Side Broadcasting Network, a Kalshi ad flashed on screen during Trump’s Madison Square Garden rally: “Bet on the US election, Bet $100 on Trump, Get $175.”
Kalshi argues this is just for marketing purposes. They stated, “The ‘bet’ language is only used in the sense that any financial position can be considered a ‘bet’ on the future.”
Kalshi are governed by the federal Commodity Futures Trading Commission (CFTC) rather than states. The company has counter sued New Jersey and Nevada over their cease-and-desist letters.
The CFTC also tried and failed to have election markets taken down last year. A federal judge ruled that “the Commission has not substantiated that risks to election integrity are likely to materialize if Kalshi is allowed to operate its exchange”.
Louisiana’s SB90 to make election betting illegal is therefore unlikely to have much effect.
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