Ohio Set to Target Prediction Markets with Further Legal Action
Key Points Ohio plans legal action against prediction market operators, including Kalshi, Polymarket and Robinhood Two proposed bills would restrict election betting and classify sporting event contracts as regulated, taxable sports gambling Regulators and gambling harm experts have raised concerns about younger users and consumer protection
Key Points
Ohio plans legal action against prediction market operators, including Kalshi, Polymarket and Robinhood
Two proposed bills would restrict election betting and classify sporting event contracts as regulated, taxable sports gambling
Regulators and gambling harm experts have raised concerns about younger users and consumer protection
Ohio is ready to go after more operators of prediction markets that offer contracts related to sports, Governor Mike DeWine said, claiming the products break the state’s gambling laws. The Ohio Casino Control Commission has already issued cease-and-desist notices to several companies, including Kalshi, Polymarket and Robinhood.
Ohio
prediction markets
Governor Mike DeWine
The Ohio Casino Control Commission
cease-and-desist notices
Kalshi
Polymarket
Robinhood
DeWine Challenges Prediction Markets Over Ohio Betting Restrictions
DeWine said the state will go after enforcement, not solely warnings. He has asked why prediction market operators should be permitted to offer sports-related bets without being subject to the same requirements placed on licensed sportsbooks.
DeWine
Ohio has banned some types of sports betting since 2005, such as bets on specific plays within a game. State officials say such restrictions can be applied to agreements concerning some sporting events no matter how the platforms describe their goods.
Ohio
The governor has also raised issues about the advertising of prediction markets, which he has seen on sporting events. He says the platforms are trying to evade state supervision by operating under a different regulatory scheme, as reported by The Statehouse News Bureau.
advertising
prediction markets
The question is whether federal regulation allows prediction markets to evade state gambling laws. Kalshi says its event contracts are regulated by the Commodity Futures Trading Commission (CFTC) and not by state gaming regulators.
Kalshi
Commodity Futures Trading Commission (CFTC)
A federal court recently ruled Kalshi must comply with Ohio law. The company challenged the decision, arguing that federal oversight should prevail. The legal fight could decide how far states can go to limit sports-related contracts offered by federally regulated platforms.
Kalshi
Ohio
challenged the decision
Prediction Markets Fuel Regulatory Disputes and Consumer Protection Concerns in Ohio
Two bills introduced in the Ohio Legislature could toughen the state’s approach. Senate Bill 479 would ban betting on elections and ban prediction market websites from offering contracts on elections. Senate Bill 430 would treat sporting event contracts as sports gambling, bringing them under state regulation and taxation. So far, neither proposal has gained much traction in the legislature.
Two bills
Ohio Legislature
Senate Bill 479
The developments are the latest since DeWine on October 5 warned that Ohio would invoke its gambling laws against Kalshi. The dispute is part of a broader battle between state regulators and prediction market operators over who has jurisdiction to regulate these products.
DeWine
The regulatory debate has also attracted the attention of gambling harm prevention experts. In September, Derek Longmeier with the Problem Gambling Network of Ohio warned prediction markets could expose younger adults to gambling because users can start using them at age 18.
The regulatory debate
Problem Gambling Network of Ohio
The legal age for traditional sports betting in Ohio is 21. Longmeier said the age group of 18 to 25-year-olds is especially vulnerable because of how easy it is to make trades online, and they are also more likely to try to make up for money lost in the past.
Ohio
Longmeier
The controversy has also strained relations between gambling regulators and responsible gambling organizations. The Ohio Casino Control Commission’s decision to part ways with the National Council on Problem Gambling (NCPG) last September over its acceptance of a donation from Kalshi brought to light concerns that public confidence could be compromised by financial ties.
strained relations
The Ohio Casino Control Commission’s
decision
National Council on Problem Gambling (NCPG)
Kalshi
The NCPG has stated that accepting funding does not mean endorsing a company’s products. However, Ohio’s objections illustrate how prediction markets have become a thorny issue for both gambling regulation and consumer protection.
NCPG
north america
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prediction markets
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