TLDR Louisiana regulators declined to give DraftKings a full gambling license renewal on October 15. The sportsbook received a conditional extension and can keep operating in the state for now. Officials say some shareholders with stakes of 5% or more did not finish required suitability checks. Regulators want answers on DraftKings’ use of AI, its prediction market activity, and its advertising. DraftKings has 30 days to submit shareholder findings and must file monthly compliance reports.
Louisiana gambling regulators have declined to give DraftKings a full renewal of its gambling license. The sportsbook will stay available to customers in the state under a conditional extension.
The Louisiana Gaming Control Board voted unanimously on October 15 to place extra requirements on the company. The vote followed a renewal hearing that raised several questions about how DraftKings runs its business.
Officials will use the extension period to look into the company’s business practices, its use of artificial intelligence, and its responsible gaming measures. DraftKings has not been accused of any wrongdoing.
To keep its place in the market, DraftKings must provide the requested information. It must also convince regulators that its practices meet state requirements.
Shareholder Disclosures Under Review
Assistant Attorney General Delancey Houston spoke to the board during the hearing. Houston said authorities found information suggesting that some shareholders with stakes of 5% or more had not completed the required suitability process.
Houston also said one shareholder had asked to be designated as an institutional investor. Regulators have not yet decided whether that request is justified.
Houston told the board that the division also had concerns about recent allegations against DraftKings. More time is needed to investigate those allegations.
The conditional permit comes with several requirements. DraftKings has 30 days to submit all remaining shareholder suitability findings, including any