Ohio Governor Mike DeWine said the state can enforce its gaming laws against sports event contracts offered by Kalshi, reportedly. DeWine characterised prediction markets as gambling and said Ohio would enforce its laws; Kalshi has argued that its products are federally regulated and has disputed state oversight.
Ohio’s stated position creates a risk of state enforcement against Kalshi’s sports event contracts.
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Arizona Governor Katie Hobbs signed an executive order barring state executive branch employees from using or disclosing non-public government information to profit from prediction markets. Violations may lead to dismissal, other sanctions or referral to law enforcement; the order also encourages other state branches and bodies to adopt comparable policies.
Ohio Sen. Bill DeMora filed legislation to bring sports prediction markets under state sports-gambling rules and prohibit election-related event contracts. He said a federal appeals court ruling could help advance the proposals, though the bills would need to be reintroduced in 2027.
The US Sixth Circuit Court of Appeals ruled for Ohio and Tennessee in consolidated cases concerning Kalshi’s sports event contracts, according to the report. The unanimous decision found Kalshi had not shown that the contracts qualified as swaps under federal law and said the Commodity Exchange Act would not override state gambling laws even if they did.
The Ohio Casino Control Commission issued demands on 2 October for prediction market operators and brokers to withdraw sports contracts from Ohio. The outlet reported that recipients must provide written confirmation of compliance by 16 October, following a federal appeals ruling allowing Ohio to apply its gambling laws to these contracts.
The Ohio Casino Control Commission sent cease-and-desist letters on 2 October to 10 prediction market operators and brokers, requiring each to confirm in writing by 16 October that it has stopped offering sports event contracts to people in Ohio. The recipients are Coinbase, Gemini, Titan, Moomoo Financial, Novig, Plus500US, Polymarket, Prophet X, Robinhood Derivatives, Underdog Predict and Webull Financial. Kalshi, which contested the commission in court, did not receive a new letter; it already faces a proposed $5m fine from the commission.
New Jersey has petitioned the US Supreme Court over whether sports prediction contracts are exempt from state gambling laws. The state challenges an appellate ruling that prevented its gaming authorities from blocking Kalshi’s sports contracts. The Supreme Court has yet to decide whether to hear the case.