Ohio steps up enforcement against prediction markets over sports-related contracts

Ohio Gov. Mike DeWine says the state will keep pushing against prediction market operators offering sports-related contracts, arguing that these products fall under state gambling laws. For PSPs and operators, the useful part is simple: Ohio is treating event contracts less like a clever label and more like a licensing and enforcement problem.

1. DeWine said Ohio’s 2005 ban on certain bets, including wagers on specific plays within a game, may also apply to event contracts. His position is that prediction market platforms should not be allowed to offer sports-related wagers while avoiding the requirements that apply to licensed sportsbooks.
2. The Ohio Casino Control Commission has already sent cease-and-desist notices to Kalshi, Polymarket and Robinhood. In other words, this is not a theoretical policy debate; state authorities are already using enforcement tools against named operators.
3. Ohio officials argue that prediction market companies are using a different regulatory framework to avoid state oversight. DeWine also criticised prediction market advertising during sporting events, according to The Statehouse News Bureau.
4. An Ohio federal court recently ruled that Kalshi must comply with state law. Kalshi has challenged the decision, saying its products were swaps regulated exclusively by the Commodity Futures Trading Commission (CFTC), so state gambling laws could not apply.
5. On federal preemption, the court said that even if Kalshi’s contracts were treated as swaps, the CEA would not stop Ohio from enforcing its gambling laws against the company. Last September, the Ohio Casino Control Commission also ended its relationship with the National Council on Problem Gambling (NCPG) after Kalshi joined the body.