Ohio regulator warns licensees over prediction market support

The Ohio Casino Control Commission (OCCC) has warned licensed operators and suppliers that providing services to prediction market platforms offering sports event contracts in Ohio could put their licences at risk. In a letter dated 20 October, the commission said licensees must immediately stop supporting such platforms and confirm compliance by 30 October. The warning follows cease-and-desist notices issued to 10 prediction market operators on 2 October.

The commission warned that a licence may be refused, allowed to lapse, temporarily withdrawn or cancelled outright. Its list of covered services spans several technology-focused functions, including market making and liquidity provision as well as integrity monitoring and data security. The letter adds: “The continued facilitation or support of illegal gambling activity, or the affiliation with illegal operators, by a Commission licensee raises significant suitability concerns.”

Major Ohio-licensed sportsbooks such as DraftKings, FanDuel and Fanatics could feel the impact of the warning. So could suppliers and integrity monitors with established ties to prediction market operators, among them Genius Sports, Sportradar and IC360. The letter cites the Sixth Circuit's September ruling, which held that sports event contracts are not “swaps” and that federal law does not preempt Ohio's gambling laws.

The 10 operators were directed to stop offering sports contracts by 16 October. That deadline has passed, and the regulator said it intends to take action against companies that failed to comply with the terms of the cease-and-desist notices. Earlier this week, Polymarket sued Ohio, challenging its sports betting laws, according to the report.