Ohio Casino Control Commission Orders Licensees to Cut Ties With Prediction Markets

The Ohio Casino Control Commission ordered its sports betting and fantasy licensees to stop providing services to unlicensed prediction markets offering sports event contracts in Ohio and gave firms until Oct. 30 to notify the commission that they are in compliance. Interim Executive Director Andromeda Morrison confirmed at the commission's Wednesday meeting that the OCCC sent a letter saying it is “deeply concerned” some licensees “continue to facilitate, support, or otherwise provide services” to those operators.

What the OCCC has directed licensees to do

The commission’s letter requires immediate cessation of activities that support unlicensed sports event contract operators and sets a firm reporting deadline of Oct. 30 for licensees and applicants to notify the OCCC that they have complied. The guidance treats the following as licensees for purposes of the directive: fantasy contest operators; sports gaming proprietors; management services providers; mobile management services providers; suppliers; key employees of proprietors, management services providers and suppliers; certified independent integrity monitors; certified independent testing laboratories; and applicants for any of these licenses or certifications.

The OCCC said it has received reports that licensees are providing services to prediction markets, including liquidity provision and market making, integrity monitoring, and equipment, data security and other technology-related services. The commission described those relationships as raising “significant suitability concerns” and warned that failure to comply could prompt reopened suitability investigations, suspension or revocation of licenses.

"A licensee’s decision to provide services to, partner with or otherwise support an entity engaged in unlicensed sports gaming in Ohio reflects on the licensee’s character, integrity, honesty, and reputation," the OCCC wrote.

How this follows prior enforcement steps

Ohio secured a Sixth Circuit ruling that cleared the way for the state to enforce its gambling laws against prediction markets, which otherwise fall under the federal Commodity Futures Trading Commission's regulation. After that decision the OCCC issued cease-and-desist orders earlier this month to 10 exchanges and brokers, giving them until last Friday to stop offering sports event contracts in Ohio.

The commission told Legal Sports Report that Plus500US is the only operator to have confirmed compliance. Two operators, Kalshi and Polymarket as of Monday, are pursuing litigation against the commission, while the remaining firms remain in discussions with regulators.

Exceptions and ongoing engagement

The OCCC included an exception for licensees that also operate as futures commission merchants or introducing brokers. Those firms remain compliant only if they block customers in Ohio from directly or indirectly accessing sports event contracts. The commission said it has had dialogue with a number of companies and described many of those conversations as occurring in "good faith."

At the monthly meeting, Morrison said the commission has had "productive conversations with several of these companies" and that the matters remain under investigation. Chairman Thomas Stickrath added a lighter note at the meeting, quipping about the frequency of litigation the commission faces.

The letter places a continuing suitability obligation on every covered licensee and applicant; the OCCC warned non-compliance may lead to disciplinary action under state licensure rules. The commission is monitoring the situation and expects licensees to respond by the Oct. 30 compliance notice deadline.