Ohio steps up action against sports prediction markets
State alleges event contracts breach its 2005 targeted-betting ban and has issued cease orders
Key Takeaways
- Governor Mike DeWine announced Ohio will increase enforcement against prediction-market operators offering sports-related contracts.
- The Ohio Casino Control Commission issued cease-and-desist orders to Kalshi, Polymarket and Robinhood.
- A federal court in Ohio ruled Kalshi must comply with state law; Kalshi has appealed, saying its contracts are CFTC‑regulated swaps.
- Ohio cites its 2005 ban on certain targeted wagers to argue that event contracts could also be prohibited under state law.
Governor Mike DeWine announced that Ohio will step up enforcement against prediction-market operators offering sports-related contracts, saying they violate state gambling laws. The Ohio Casino Control Commission has issued cease-and-desist orders to firms including Kalshi, Polymarket and Robinhood; a federal court in Ohio recently ruled that Kalshi must comply with state law, a decision the company has challenged.
Legal basis and background
DeWine said Ohio’s 2005 ban on certain types of wagering — including bets on specific plays within a game — could also apply to the event contracts offered by prediction markets, regardless of how platforms classify their products. The governor also criticised advertising for these markets during sporting events and said companies are relying on a different regulatory framework to try to avoid state oversight.
Regulatory actions and litigation
The Ohio Casino Control Commission has sent cease-and-desist notices to Kalshi, Polymarket and Robinhood while authorities question their ability to operate outside the rules that govern licensed bookmakers. A federal court in Ohio ruled that Kalshi must comply with state law; Kalshi has challenged that ruling, arguing its products are swaps regulated exclusively by the Commodity Futures Trading Commission (CFTC). The court said that even if Kalshi’s contracts were considered swaps, the Commodity Exchange Act (CEA) would not prevent the state from applying its gambling laws against the company.
Industry reaction and consequences
Last September the Ohio Casino Control Commission ended its relationship with the National Council on Problem Gambling (NCPG) after Kalshi joined that body. Operators and platforms now face heightened regulatory pressure in Ohio as legal fights continue over jurisdiction between the CFTC and state rules.
Frequently Asked Questions
What actions has Ohio taken against prediction markets?
Ohio has issued cease-and-desist orders to Kalshi, Polymarket and Robinhood through the Ohio Casino Control Commission, and the governor has said the state will seek increased enforcement against operators offering sports-related event contracts.
What did the federal court rule regarding Kalshi?
A federal court in Ohio ruled that Kalshi must comply with Ohio state law. Kalshi has challenged the decision, arguing its products are swaps regulated solely by the Commodity Futures Trading Commission (CFTC).
How does Ohio use the 2005 law in this dispute?
Ohio invokes its 2005 prohibition on certain types of wagering — including bets on specific plays — to contend those restrictions can apply to prediction-market event contracts regardless of how platforms classify them.
Were there changes in relationships with problem-gambling organisations?
Yes. In September the Ohio Casino Control Commission ended its relationship with the National Council on Problem Gambling (NCPG) after Kalshi joined that organisation.
Tags
About the author
Renata Quiroga
Betting Markets Correspondent
Renata Quiroga covers sports betting and prediction markets — sportsbook launches, odds technology, event contracts, and the regulatory calls that decide what can be bet on and where. The reports open with the product or the ruling, name operators and platforms precisely, and explain the mechanics without needless jargon. When a book enters a Latin American market or a prediction exchange lists a contested contract, Renata Quiroga reports what changes for the bettor.
More from Renata Quiroga
