Ohio escalates enforcement against prediction markets
DeWine says Ohio’s 2005 ban on certain bets, such as wagers on specific plays, may also apply to event contracts.
Key Takeaways
- Gov. Mike DeWine said Ohio will pursue further enforcement against prediction market operators offering sports-related contracts, arguing they violate state gambling laws.
- The Ohio Casino Control Commission has already issued cease-and-desist notices to companies including Kalshi, Polymarket and Robinhood.
- An Ohio federal court recently ruled Kalshi must comply with state law; Kalshi has challenged the decision.
US.- Ohio Governor Mike DeWine has said the state will pursue further enforcement against prediction market operators offering sports-related contracts, arguing that their products violate state gambling laws. The Ohio Casino Control Commission has already issued cease-and-desist notices to companies including Kalshi, Polymarket and Robinhood, as state officials challenge their ability to operate outside the rules governing licensed sportsbooks.
DeWine has questioned why prediction market platforms should be allowed to offer sports-related wagers without meeting the same requirements as traditional betting operators. Ohio has prohibited certain types of sports bets since 2005, including wagers on specific plays within a game, and officials argue that these restrictions may also apply to event contracts regardless of how platforms classify their products.
The governor has also criticised prediction market advertising during sporting events, saying companies are using a different regulatory framework to avoid state oversight, according to The Statehouse News Bureau.
An Ohio federal court recently ruled that Kalshi must comply with state law. The company has challenged the decision, arguing that its products were swaps regulated exclusively by the Commodity Futures Trading Commission (CFTC), meaning state gambling laws could not apply. As for federal preemption, the court said that even if Kalshi’s contracts were considered swaps, the CEA would not prevent the state from enforcing its gambling laws against the company.
Last September, the Ohio Casino Control Commission ended its relationship with the National Council on Problem Gambling (NCPG) after Kalshi joined the body.
