Ohio senator proposes ban on election betting through prediction markets

Bill DeMora, a state senator, brought Senate Bill 479 forward this month. The measure would bar wagering on election results and other political races, and it would apply the same ban to prediction market venues such as Kalshi and Polymarket. April's SB 430 was his earlier effort at regulating such markets. Should the bill pass, Ohio would become the 33rd state with an election betting prohibition, since 32 others already have one.

In comments to NBC 4i, DeMora said safeguarding elections drove the bill. He remarked: "Anything that that is taking the reliability and people’s confidence away from election results is not a good thing, and I don’t think we should be betting on these outcomes". NBC 4i also reported his view that Kalshi, Polymarket and similar venues ought to be held to the licensing and tax standards applied to conventional sportsbooks. Letting them work beyond Ohio's gambling rules, he contended, "risks creating an uneven playing field".

Entry fees for Ohio's licensed sportsbooks sit between $50,000 and $2.5m according to licence category, and renewals each year may reach hundreds of thousands of dollars. DeMora cautioned that sportsbooks regulated in the state might eventually demand parity if prediction markets stay outside its betting rules. He said: "If we don’t start regulating these these predictive markets like sports betting — because that’s what they are — then guess what?" He continued: "The regulated sports betters are going to say, ‘OK, I’m no longer sports betting. I’m now a predictive market,’ and they’re going to stop paying taxes at all. And what’s that going to do to our budget?"

The bill arrives while Kalshi pursues a rehearing, having lost before the 6th US Circuit Court of Appeals, which held that Ohio's gambling statutes permit it to oversee prediction markets. Mike DeWine, the governor, has endorsed that stance, arguing that such markets behave much like gambling while seeking to sidestep its rules.

In a separate step, the Ohio Casino Control Commission last week directed holders of sports betting and fantasy sports licences to cease supplying prediction market firms that sell sports event contracts in Ohio, with a deadline of 30 October. Suppliers, testing laboratories, integrity monitoring companies and other licensed businesses tied to the state's gambling sector fall within the order as well. It came after cease-and-desist letters went to 10 prediction market operators earlier this month, requiring them to halt sports event contracts for Ohio residents by 16 October. The Commission has indicated it may take further steps against operators that keep serving the state.

Three major bookmakers — DraftKings, FanDuel and Fanatics — run licensed sportsbooks in Ohio and at the same time pursue prediction market business in other jurisdictions. Morrison, who serves as the OCCC's interim executive director, cautioned that any operator backing "unregulated and unlicensed gaming through prediction markets, [it] may impact their future and ongoing suitability."