Local & State
Ohio expands crackdown on prediction markets offering sports event contracts
PN Team • 4 weeks ago
Ohio gambling regulators have widened their enforcement push against prediction markets offering sports event contracts, sending cease-and-desist letters to nine operators—including Polymarket and Robinhood—after winning a federal appeals court ruling against Kalshi. The letters warn operators they must comply with state sports-betting regulations or stop allowing Ohio residents to trade on sporting events within 14 days, or face fines, lawsuits, or criminal charges.
The move intensifies a broader national legal fight over whether prediction markets' sports-related contracts qualify as federally regulated financial "swaps," which would exempt them from state gambling oversight, or as de facto sports betting subject to state licensing and consumer-protection rules. Ohio's action follows its earlier court victory over Kalshi and signals that state regulators intend to pursue the full field of prediction-market operators rather than targeting a single company. The outcome could shape how prediction markets operate nationwide, as similar disputes are playing out in other states while federal regulators and courts weigh in on the swaps-versus-gambling classification question.
Sources:
Sentiment
- Ohio Ohio regulators are portrayed as proactively enforcing consumer protection laws against prediction market operators.