Louisiana has introduced a new bill to make election betting illegal. According to the bill authored and introduced in the Louisiana Senate by Senator Rick Edwards, any activity related to election betting will be banned if it passes. This would mean that accepting and placing bets on any elections is illegal. The wording of the Louisiana bill , Senate Bill 90, sought to cover all aspects related to betting on political elections. “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,” it read. Louisiana wants to outlaw election betting The Louisiana bill also clarified that the bets would have to satisfy some conditions to be termed illegal. Some of the conditions include making an offer or wager, accepting any offer or wager, taking a share or monetary interest in a bet or wager, and acting in a way or manner that shows relation to a bet or wager on an election. The proposed penalty is the same as the current penalties for election violators. For first offenders, a fine of $1,000 or a jail term of up to a year, while repeat offenders are to pay a fine of $2,500 or a jail term of up to five years. Online sports betting has been legal in Louisiana since 2022. Last October and November, several bets were placed online during the election season. Several platforms ran election markets, with most residents trying to make profits from the election. The state collects a considerable amount in taxes from online betting, with February alone seeing the state net more than $7 million in tax, up 87% from February 2024. The growing pattern of election betting was evident in the last United States general election after Polygon-based betting platform Polymarket announced wagers on different markets, including the winner of the presidential election. The platform even went as far as tipping the eventual winner, Donald Trump, to take the coveted office. While the platform was previously used by crypto participants, the markets opened it up to the general American population. States hit betting sites with cease-and-desist letters States in the United States have been hitting betting sites with cease-and-desist orders, putting them all over the news. States like Illinois, New Jersey, Ohio, and Nevada have accused several platforms, including Kalshi, Robinhood, and Crypto.com of carrying out unlicensed sports betting. Last year, Kalshi and Robinhood netted about $300 million alone from the United States presidential election. The sites have argued this week that their Super Bowl and March Madness markets do not constitute sports betting. However, they made clearer advertisements during the elections, urging the general public to bet on the elections. Kalshi, for instance, made an ad on Right Side Broadcasting Network, flashing a message that read “Bet on the US election, Bet $100 on Trump, Get $175” across the Madison Square Garden Rally screen during the Donald Trump rally. Kalshi has argued that the advertisements are just for marketing purposes, noting that the “bet” in the statement is only used to consider a financial position. Kalshi is governed by the Commodities Futures Trading Commission (CFTC) rather than states. The company has initiated a counter-lawsuit against New Jersey and Nevada over their cease-and-desist letters. The CFTC also tried to bring down all betting markets related to the election last year but failed to do so. A federal judge at the time ruled that “the Commission has not substantiated that risks to election integrity are likely to materialize if Kalshi is allowed to operate its exchange.” Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
