Ohio governor DeWine pursues further enforcement against prediction markets

Governor Mike DeWine has announced that Ohio intends to step up enforcement against prediction market operators that sell sports-related contracts, on the grounds that such products break state gambling law. Cease-and-desist notices have already gone out from the Ohio Casino Control Commission to firms such as Kalshi, Polymarket and Robinhood.

DeWine has asked why prediction market platforms are allowed to take sports-related wagers when they do not face the same obligations as traditional betting operators. Since 2005 Ohio has barred particular kinds of sports bets, among them wagers on specific plays within a game, and officials contend that these limits could extend to event contracts no matter how platforms label their products.

According to The Statehouse News Bureau, the governor has additionally taken aim at prediction market advertising shown during sporting events, contending that such companies rely on a separate regulatory framework in order to escape state oversight.

A recent ruling by an Ohio federal court held that Kalshi is required to follow state law. Kalshi is contesting that outcome, contending its products are swaps under the exclusive oversight of the Commodity Futures Trading Commission (CFTC), which would put state gambling laws out of reach. On the preemption question, the court found that the Commodity Exchange Act would not stop Ohio from applying its gambling laws to the company even if Kalshi's contracts counted as swaps.

In September, the Ohio Casino Control Commission ended its relationship with the National Council on Problem Gambling after Kalshi joined the body.